Customer Service Policies: Billing Policy - ER

Our billing policy outlines the guidelines we follow for managing transactions and charges associated with the services we offer. This policy aims to provide clarity and transparency to our customers regarding payment methods, billing cycles, and any other relevant financial matters.  

Accepted Payment Methods: 

• Credit Card 
• Debit Card 

Updating the Billing in Pando

When changing the card on file, we do not read the card number back to the customer for legal reasons. If you think you missed something on it, just ask the customer to repeat it so you can be sure you have it all correct. 

 

If a card won't add, double-check the following: 

• Billing Address 
• Card Number 
• If the card is active 
• The CVV code on the back 

 

Changing the Next Billing Date 

Changing the "Next Billing Cycle" will move the customer's next payment but it will not alter any payments after that. We are permitted to do this anytime within the same month that the customer is changing. 

 

 

Changing the RMR Billing Date

Changing the "RMR Billing Cycle" will change the date in the month that they are charged for Monthly Monitoring. This is a permanent change. 

 

One-Time Payment Process 

This is how any payment is taken on an account for monthly monitoring to paying off balances to paying for new equipment. 

One-Time Payment Process Video Reference 

1. Select the appropriate Billing Method (Customers may have multiple methods of payment available on an account). The customer’s default payment method can be automatically selected by choosing “Default Payment Method” 
2. Enter the payment amount to be charged. 
3. If the payment should be processed on a future day change the process date to the desired date and the payment will come out, then. This is called a future payment. 
4. Select yes or no on if you're creating an invoice:
   • For all RMR payments, you never create an invoice
   • For additional payments beyond the RMR (Sales Upgrades, paying off the Equipment Balance, etc.) you will need to create an invoice. 

 

Payment Plan

Payment Plans are multiple One-Time Payments that are linked together and scheduled on specific, unique dates. The dollar amount of each payment is equal to the total amount due divided by the desired number of payments. 

From the Pando Master Screen, click on Create a Payment Plan at the bottom of the Payment Information section. 

Payment Plan Process Video Reference 

1. Select "Use Default Payment Method" 
2. Enter the Total Amount due 
3. Enter the desired Number of Payments 
4. Fill in each 'Process Date' in order of when each payment should go through 
5. Click "Review Payment Information" 
6. Copy the [Date Amount] Table and paste it into the Account Notes. 
7. Click Submit Payments 

Once you set up a payment plan, send the customer an email with the canned response "Payment Plan Overview". Be sure to fill in the relevant information before sending it.  

 

Payment Prioritization/Payment Plans

The size of a customer's past-due balance will determine what payment options we can offer them. Always offer to take the balance in full first. If that does not work for them, then you can offer other options. 

• Past due of one month: Don’t split just recover in full, if not the day of contact, within the next two weeks 
• Past due is two months: Split if needed, but schedule the full amount within two weeks 
• Past due over $100: Take whatever you can on the day of contact and set up a payment plan for two payments to be resolved within 2 months. 
• Past due over $200: Process at least half of the amount on the day of contact and set up no more than six payments to be resolved within three months. 

No payment plan should exceed three months or be split into more than six payments without approval from a TL or the Billing Lead. After deciding on and creating a payment plan, always send a follow-up email to the customer to ensure they have a record of what they've agreed to. 

 

Creating an Invoice

Invoices are a collection of itemized charges that make up a total charge for a transaction. A typical invoice will include the retail price of an item or service as one item and an auto-applied tax item if applicable as another. 

Creating Invoice Video Reference 

Individual Invoice Process: 

1. Clicking "Create Invoice" on the master screen 
2. Entering the invoice date: date of transaction or today’s date 
3. Writing a quick memo: a brief description of what the invoice items are for.
   • Example: Sales Upgrade - 1 x D/W sensor, 2 x motion sensors. no shipping. 
4. Creating the invoiced items: each part of the invoice should be itemized here. These individual items will make the whole invoice.
   • GL Name: the type of item you are adding. We only normally use the following:
     • Sales Upgrade: Additional Equipment, paying off the equipment balance, etc. 
     • Postage Fee: Shipping fees we charge for additional orders 
     • Activation: For the first month RMR charge when we reactivate an account 
   • Rate: the total amount of each item.
     • Example: Sales Upgrade - $128.00, Postage Fee - $5.00 Total $128.00 
5. Create the invoice. 

 

Invoices and Credits

Accounting is centralized around two sides of a balance, Invoices and Credits.  

• Invoices are statements that show that the customer owes us money for services rendered, items purchased, or fees required.  
• Credits are any payment or discount that shows the receipt of funds received or the forgiveness of funds due. 

Types of Invoices

• Initial: Initial invoices are created automatically when the customer first orders a system or activates their account. These invoices are never created manually and can't be edited or deleted. 
• Recurring: Recurring invoices are created automatically by the system on the first of each month. Recurring invoices are never created manually and can't be edited or deleted. 
• Additional: Additional invoices are for any other transaction that is not initial or recurring (Additional orders, etc.). Additional invoices are always created by the employee but should only be edited or deleted by a manager. 

How to Process Invoice: 

1. Access the "Payment Information" Tab and choose "Create Invoice." 
2. Enter the Invoice Date. 
3. Provide a brief description in the Memo section to explain the purpose of the invoice. 
4. Pick a GL Name  
5. Input the rate associated with the invoice. 
6. Click on "Add Invoice Item." 
7. Finally, select "Create Invoice" to complete the process. 

Types of Credits 

• Payment: This is any payment that a customer makes to the account regardless of what they are paying for. 
• Credit: Credits are discounts on monthly services that are granted to the customer by an employee. (See Pando Technician for more details) 
• Refunds: Refunds occur if a customer is returning a single item, any additional equipment, or a whole system purchased inside the 60-day return period. Refunds outside of the 60-day review period need managerial approval before they are processed. 

How to Process Credits:   

1. Open the Pando Drawer and click on Credit Request. 
2. Choose "Credit Account." 
3. Pick the relevant Categories and input the credit amount. 
4. Click on Add Reason. 
5. Specify the Request Reason. 
6. Briefly describe the credit in the Notes section. 
7. Select Review Request. 
8. Once reviewed, press the Submit button.

 

Year in Advance Program

This program was created to offer a way for customers to pay for monitoring services a year in advance. 

Benefits

Basic Plan

• 1 month of free monitoring services

Value Plan

• 1 month of free monitoring services
• $10 Cove Credit

 

When to Offer YiA? 

1. If a customer calls asking if they have any past due balance, we may offer the YiA after we let them know about the account balance.
   • Example: We can see here that you are eligible for our Year in Advance payment plan that comes with a free month and ten dollars in Cove credit. Is this something you would be interested in? 
2. If a customer calls to update their card on file, we may offer the YiA after changing their credit card on file.
   • Example: We have successfully updated your credit card on file. We can see here that you are eligible for our Year in Advance payment plan which comes with a free month and ten dollars in Cove credit. Is this something you would be interested in? 
3. If a customer calls to pay a month in advance, we may introduce the YiA.
   • Example: We will be more than happy to assist you in processing your payment. Before proceeding with this payment, we can see here that you are eligible for our Year in Advance payment plan which comes with a free month and ten dollars in Cove credit. Is this something you would be interested in? 

Example calculation: 

1. If the customer has a 1-month due balance, when we process this payment, they will be paying for 12 months total, but only 11 months in advance. 
2.  If the customer has a 2-month due balance, when we process this payment, they will be paying for 12 months total, but only 10 months in advance. 
3. If the customer has a 3-month due balance when we process this payment, they will be paying for 12 months total, but only 9 months in advance. 

 

YiA Process

If a customer chooses to pay a year's worth of their monthly payment (RMR), follow this process:

1. Inform the customer of the total amount to pay and ask them if they agree to be charged today to the card on file.
   • Example: $27.99 RMR x 12 months = $335.88
2. Go to the payment information section in Pando (Video Reference)
   • Click One Time Payment
   • Choose the payment method
   • Process a payment equal to 12 months of service
   • Select the One Time Payment reason as Year in Advance Payment
   • Submit Payment
3. The agent processing the payment should submit a credit under "RMR" equal to one month's RMR select the reason for the credit as "Year in Advance free month" and add $10 cove credit to the current cove credit balance. These credits should be submitted while on the phone with the customer.
4.  When leaving a note in Pando set the disposition as the following:
   • Primary Reason: Billing
   • Secondary Reason: Year in Advance YiA
5. Send the canned response email for the YiA Payment

 

Refund Process for YiA Payments 

If a customer calls in requesting a refund because they are canceling their services, first make sure to resolve any issues they are encountering by following the Retention and Cancellations - ER KB article. If canceling is their final decision, process a refund for the remaining months they have left.  

• Example: Customer paid the YiA and has a balance equivalent to 3 months when they decide to cancel. In this situation, you will issue a refund for 3 months of monitoring. 

 

Past Due Monitoring Exceptions 

Below are special insistences that we do not need to collect the full past due balance before canceling an account. 

Bankruptcy 

Filing for Bankruptcy is done when a debtor (someone unable to make pay their debts) takes legal action to liberate themselves from debt. This means that they are no longer responsible for paying off any past-due balances they have with us here at Cove and we are legally obligated to stop charging/calling them. Customers who claim to have filed for Bankruptcy need to: 

• Provide us with documentation over email for "Proof of Bankruptcy" 

• Have their account canceled 

Bankruptcy liberates the customer from any need to pay off their past due balance, but we will also no longer provide them with monitoring because we cannot receive any more payments. 

Deceased 

If an account holder has died, their family is not responsible for paying any past dues on the account. We can simply waive the balance and cancel the account. We only request they send us a copy of the owner's "Death Certificate" over email as proof.  

Military Deployment 

Customers of the US Military are called into deployment at any time. If this should happen many of them no longer wish to keep the system active while they're gone. Canceling their account until they're ready to continue monitoring is all that needs to be done in these situations. Military customers are still expected to pay off their past due balances before we can re-activate their accounts should they have not taken care of it before their deployment. 

 

Billing Rewards

Late Stage & Recovery Rewards

For both Late-Stage and Recovery accounts, we strive to provide incentives that will help our customers feel more inclined to pay off their past dues and allow us to support them better while they do. Before giving any credit or rewards, the customer will need to have an updated card for ongoing billing and a full payment plan for any remaining balance. If any payments are missed on their payment plan, they will have to pay the credited amount. 

• Months paid = Weeks of Credit: For each month paid we can provide them with one week's monitoring (ex. Customer pays off 3 months of monitoring, we can give them 3 weeks of monitoring credit). 

• Economy Customers Only: If they pay off their equipment, we can forgive or credit up to three months of past-due monitoring.  

• Website Discounts: If a customer pays off more than three months of past due payments, we can give them two weeks to order additional equipment with the current website discount regardless of whether they are still in their 60 days or not. This will need to be noted on their account with the exact date when the discount will end for the customer. They will still be unable to place orders for additional equipment if they have an existing account balance. 

 

FlexPay

Flexpay is an automated strategy to resubmit missed payments. This will resubmit missed payments on days that are estimated to be the most successful. Payment will show up in Pando as a payment taken by the WSDL user, similar to how all payments taken by Pando currently show but there will be the following note on the payment. “Payment Recovery attempted through FlexPay”. 

Any payment that is submitted and then returned with a hard declined code, meaning the payment method must be replaced with a new payment method for payments to continue, will have that method automatically removed from the account and the account will be placed on a Direct Invoice billing method and would reset the billing cycle every 1st or 20th of the month.  

Agents who access a customer's account where the billing method is shown as a direct invoice should inform the customer that the previous payment method that was on the account is no longer valid and that a new payment method needs to be provided before anything else can be done to assist them with their service. 

Accounts that are set to direct invoice will continue to be billed and will go past due until a new payment method is provided and payment is taken for any missed payments. As with all past-due accounts, customers will be notified that their services will be paused with three consecutive missed payments and then canceled with 6 consecutive missed payments.