Exactly.
And most communications services (phone, cable TV, etc.) are prepaid for
monthly charges and postpaid for usage based charges.
-----Original Message-----
From: Larry Smith
Sent: Monday, June 27, 2016 2:41 PM
To: [email protected]
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?
If you do not "pre" bill for service, such as internet access,
there is little to no chance of collection after the fact if
they decide not to pay... We pre-bill for the "next" month
on the 20th, due by the 1st, suspend services on the 6th
for CC, ACH, etc (auto payments) that fail, then suspend
cash, check customers on the 10th.
Our billing system handles this without issue (Freeside).
--
Larry Smith
[email protected]
On Mon June 27 2016 14:35, Christopher Gray wrote:
I've setup my billing so everything is expected to be paid before service
is provided (prepaid). I send invoices in advance of a service cycle and
they are due by the beginning of the service cycle. Early on, I convinced
myself this was a good idea so I would never have to deal with collections
and it seemed fair.
I'm working on switching billing systems, and the new system does not
really operate that way. This has me wondering if my method is really a
good one, or if there are good reasons to bill at the start of a service
cycle. I've gone through my bills and others I have available to me, and
very few actually bill in advance of a service cycle.
Is there a good reason to avoid prepaid service or that companies tend not
to do it?
-Chris
