When it comes to billing clients for the services rendered, a time delay between service delivery and client billing leaves space open for errors which can be costly to communication service providers. In contrast, a real-time charging system ensures that every second of communication service is accounted for at the moment it happens so that billing can be accurate. Without real-time charging, the communication service industry could not exist as it does today. Let’s explore why.
The history of real-time charging
Mobile phones completely changed the world, but for a long time, they were only accessible to the wealthy among us. In the beginning, mobile phone service operated on a post-paid model, meaning that users were allowed to make as many calls as they wanted and were billed for services rendered after the fact. In order to ensure that they were paid, communication service providers only worked with individuals with high credit scores who had demonstrated their ability to pay bills. This only changed when pre-paid mobile phones were developed.
Under the pre-paid model, consumers pay a communication service provider upfront, and then credit is deducted from their balance. Since communication service providers received money upfront, they did not need to be concerned with credit scores. Under the pre-paid model, when a user has used up all of their balance, the telecommunication service is cut off until they make another upfront payment. In order to achieve this type of service that widens the accessibility of mobile phones, the telecommunications industry developed real-time charging.
Without real-time charging, a telecommunication provider would not be able to know when a prepaid customer had used up their balance, and thus risked the continuation of service without the continuation of pay. When charges happen in real-time, communication service providers can keep track of how much of a balance remains on a pre-paid account and can cut off the user once the bottom is reached. The balance must be monitored at all times in order to achieve this. This system of charging completely changed the game for mobile phone users.
Why real-time charging is important today
Today, real-time charging is used for both pre-paid & post-paid customers. Close monitoring of services has allowed communication service providers to be more flexible with clients. In today’s market, real-time charging allows customers to customize their mobile service packages. For example, deals can be offered to clients looking for mixed media services. A family with five cell phones to support can be offered free movies or music once a certain threshold of telecommunication service is reached every month. Without real-time charging, the communication service provider would have no way of knowing when that threshold of service was actually reached.
Real-time charging is beneficial to both the communication service provider and its customers. Customers are offered more flexible services and packages and communication services providers get payment assurances.
The Telgoo5 real-time charging service
Telgoo5 has been in the billing business since 2006 and we process millions of transactions every day. Our real-time transactions are processed within 250 milliseconds or less and are capable of meeting competitive service level agreements. If you are looking for real-time charging, we are the billing system for you.