Avoid payment defaults for purchase on account in Switzerland: Credit check, dunning, and debt collection

Payment defaults are the greatest risk when selling on invoice — but they are calculable and avoidable. Swiss online shops have three levers: credit checks prior to purchase (via credit agencies such as CRIF or Intrum), professional dunning processes in accordance with the Swiss Debt Collection and Bankruptcy Act (SchKG), and outsourcing the risk to BNPL providers such as Klarna or CembraPay. The right mix of prevention and hedging depends on the default rate, average basket size, and customer profile.

This guide presents you with concrete instruments for prevention and protection — from real-time credit checks in checkout to debt collection proceedings under the SchKG.

1. Why payment defaults with purchase on invoice are a calculable risk — not a reason to forgo it

Payment defaults for purchases on invoice in Switzerland typically range between 1 and 5 %, depending on the industry, customer profile, and existing protective mechanisms. That sounds minimal, but it can become significant with high order volumes.

Calculation example: An online shop with 1,000 orders per month at EUR 120 on invoice and a default rate of 3 % loses EUR 3,600 per month — or EUR 43,200 per year. The question is: Is this amount higher or lower than the costs of prevention (credit checks) and hedging (BNPL fees)?

The answer is almost always: Prevention is more cost-effective. A credit check via CRIF or Intrum costs a few rappen per inquiry. Outsourcing to Klarna costs 1.60–2.40 % — at EUR 120, that equals EUR 2.12 to 3.18 per order, or EUR 2,120–3,180 per month for 1,000 orders. That is less than the EUR 3,600 loss at a 3 % default rate.

Not offering purchase on invoice is therefore rarely the right solution — rather, it is about professionally managing the risk.

2. Credit checks prior to purchase: How CRIF, Intrum, and Dun & Bradstreet work

The credit check is the first line of defence against payment defaults. There are four relevant credit reference agencies in Switzerland:

CRIF AG: The largest Swiss credit agency. CRIF issues a numerical score (1 to 600) reflecting the likelihood of payment. Data sources include debt enforcement registers, commercial registers, debt collection data, and positive payment behaviour.

Intrum AG: Offers debt collection services alongside credit checks. Intrum provides plugins for Shopware and shopify that enable credit checks directly within the checkout process.

Dun & Bradstreet Schweiz AG: Focused on corporate creditworthiness (B2B). Provides the D-U-N-S score for companies.

Creditreform: Swiss association with a local network. Particularly strong in the SME sector.

In practice, real-time credit checks in checkout function as follows: If a customer selects "Purchase on invoice", the shop system sends an API request to the credit agency in the background. A score is returned within milliseconds. If the score is above your defined threshold, the payment method is approved. If it is below, the payment method is hidden — the customer only sees credit card, TWINT, or other risk-free options.

Important: In Switzerland, you may only retrieve credit data with a legitimate interest and in compliance with the Data Protection Act (DPA). A legitimate interest exists when you deliver goods to a person on credit (i.e. on invoice).

3. Setting up dunning correctly: Payment reminder, 1st dunning letter, 2nd dunning letter — deadlines and phrasing

When an invoice remains unpaid despite a credit check, the dunning process begins. In Switzerland, there is no legal obligation to send dunning notices — you could submit a debt collection request immediately after the deadline expires. In practice, however, a stepped process is recommended to preserve the customer relationship:

Payment reminder (5–7 days after deadline): Friendly notice that payment is still outstanding. This is often sufficient — many defaults are simply due to oversight. No dunning fee.

First dunning letter (14 days after deadline): Formal tone, new payment period of 10 days. A dunning fee of EUR 10–20 is standard in the industry — but must be stated in the GTC.

Second dunning letter (24 days after deadline): Final notice with the threat of debt collection. New payment period of 10 days. Dunning fee of EUR 20–30.

Automation is essential here: Modern e-commerce systems and accounting tools (bexio, Abacus, Run my Accounts) can fully automate the dunning process — including dispatching emails with payment reminders and new QR-bills.

4. From dunning to debt collection: How the SchKG procedure works in Switzerland

If all dunning attempts fail, debt collection proceedings under the Swiss Debt Collection and Bankruptcy Act (SchKG) are the next step. The procedure:

Debt collection request (Art. 67 SchKG): You submit a debt collection request to the debt collection office at the debtor's place of residence — in writing, verbally, or online. Costs: EUR 7–400, depending on the claim amount. You must advance the costs.

Payment order (Art. 69 SchKG): The debt collection office serves a payment order to the debtor — ordering payment within 20 days, and stating that an objection can be lodged within 10 days.

Objection (Art. 74 SchKG): If the debtor lodges an objection (Rechtsvorschlag), you as the creditor must enforce the claim via the courts. With a written contract or signed order confirmation, you can apply for provisional dismissal of the objection (Art. 82 SchKG).

Continuation request: If no objection is lodged, you can submit the continuation request at the earliest 20 days after service of the payment order.

For online shops with many small claims (EUR 20–200), the debt collection procedure is often disproportionately time-consuming. In these cases, outsourcing to a collection agency or using BNPL with risk assumption is more economical.

5. Risk assumption by third parties: When a BNPL provider with payment guarantee pays off

BNPL providers such as Klarna, CembraPay, POWERPAY, and TWINT Pay Later assume the default risk entirely. You receive the amount guaranteed — regardless of whether the customer ultimately pays. The question is: When is this worthwhile?

Rule of thumb: BNPL with risk assumption pays off when your default rate exceeds the BNPL fee. With a default rate of 3 % and a BNPL fee of 2.40 %, you effectively save 0.60 % per transaction using BNPL — along with the entire overhead for dunning and debt collection.

6. In-house management vs. outsourcing: Cost-benefit calculation for Swiss SMEs

The decision between own risk and outsourcing depends on three factors:

Order volume: With fewer than 50 invoice orders per month, the administrative overhead for an in-house dunning process remains manageable. From 200 orders per month, outsourcing is almost always more economical.

Default rate: Below 1 % default, carrying the risk with QR-bills is cheaper. From 2–3 % default, the losses surpass the BNPL fees. From 5 % default, BNPL with risk assumption is strictly advisable.

Basket size: For large shopping baskets (over EUR 500), every default weighs heavily. Even with a low default rate, single unpaid orders can disrupt the monthly results. Here, protection via BNPL or a credit check is especially vital.

A pragmatic approach for Swiss SMEs: QR-bill with credit check (CRIF/Intrum) for regular customers and B2B clients, complemented by Klarna or TWINT Pay Later for new customers and higher-risk segments.

7. Prevention in checkout: Order limits, address validation, and fraud detection

In addition to credit checks and BNPL, further preventative measures exist to reduce payment defaults:

Order limits for new customers: Limit the maximum invoice purchase amount for first-time buyers — for example, to EUR 100. Following the first successful payment, the limit can be raised.

Address validation: Verify whether shipping and billing addresses match. Discrepancies are a risk signal. Swiss Post provides an API for address validation.

Velocity checks: Detection of conspicuous order patterns — such as multiple orders on invoice within a short time from the same address or IP.

Only verified payment methods for invoice purchases: Make purchase on invoice available only to customers with a verified account and confirmed address. Guest checkouts receive only risk-free payment methods such as credit card or TWINT.

Limit open claims: Do not permit any new orders on invoice as long as a prior invoice remains outstanding.

Checklist: Systematically minimising payment defaults on invoice purchases

• Calculate your current default rate: What percentage of orders on invoice remain unpaid?

• Compare default costs with BNPL fees: At what threshold does risk assumption pay off?

• Implement a real-time credit check in checkout (CRIF or Intrum) to filter high-risk transactions.

• Establish an automated dunning process: Payment reminder → 1st dunning letter → 2nd dunning letter → Debt collection.

• Set order limits for new customers purchasing on invoice.

• Check shipping and billing addresses for plausibility.

• Combine own risk (QR-bill for regular customers) with BNPL (for new customers).

• Document your GTC: Dunning fees, default interest, and the warning of debt collection must be anchored in the GTC.