How to avoid payment defaults on purchase on account in Switzerland: Credit checks, dunning process and debt collection

Payment defaults are the biggest risk when buying on account — but they are calculable and avoidable. Swiss online stores have three levers: credit checks before purchase (via credit agencies such as CRIF or Intrum), professional dunning procedures according to the Federal Act on Debt Collection and Bankruptcy (SchKG) and outsourcing the risk to BNPL providers such as Klarna or CembraPay. The right mix of prevention and protection depends on the default rate, shopping cart size and customer profile.

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

1. Why payment defaults in purchase on account are a calculable risk — not a reason to do without it

Payment defaults in purchase on account in Switzerland are typically between 1 and 5 %, depending on the industry, customer profile and existing protection mechanisms. That sounds like little, but can become significant with high order volumes.

Calculation example: An online store with 1’000 orders per month at EUR 120 on account 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 check) and protection (BNPL fees)?

The answer is almost always: Prevention is cheaper. A credit check via CRIF or Intrum costs a few cents per query. Outsourcing to Klarna costs 1.60–2.40 % — at EUR 120 that is EUR 2.12 to 3.18 per order, i.e. EUR 2’120–3’180 per month for 1’000 orders. This is less than the EUR 3’600 loss at 3 % default.

Therefore, not offering purchase on account is rarely the right solution — rather, it is about managing the risk professionally.

2. Credit check before buying: How CRIF, Intrum and Deltavista work

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

CRIF AG: The largest Swiss credit agency. CRIF assigns a numerical score (1 to 600) that maps the probability of payment. Data sources are debt collection registers, commercial registers, debt collection data and positive payment behavior.

Intrum AG: In addition to credit checks, also debt collection services. Intrum offers plugins for Shopware and Shopify that enable credit checks directly in the checkout process.

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

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

In practice, the real-time credit check in the checkout works like this: If a customer selects "purchase on account", the shop system sends an API query to the credit agency in the background. A score comes back within milliseconds. If the score is above your defined threshold, the payment method is released. If it is below, the payment method is hidden — the customer only sees credit card, TWINT or other risk-free options.

Important: You may only query credit data in Switzerland with a legitimate interest and in compliance with the Data Protection Act (FADP). A legitimate interest exists if you deliver goods to a person on credit (i.e. on account).

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

If an invoice remains unpaid despite a credit check, the dunning process begins. In Switzerland, there is no legal obligation to send a warning — you could file a debt collection request immediately after the deadline has expired. In practice, however, a stepped process is recommended, which protects the customer relationship:

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

First warning (14 days after deadline): Formal tone, new payment deadline of 10 days. A dunning fee of EUR 10–20 is common in the industry — but must be anchored in the T&C.

Second warning (24 days after deadline): Last warning threatening debt collection. New payment deadline of 10 days. Dunning fee of EUR 20–30.

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

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

If all warnings remain unsuccessful, debt collection proceedings under the Federal Act on Debt Collection and Bankruptcy (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 residence — in writing, orally or online. Costs: EUR 7–400, depending on the amount of the claim. You must advance the costs.

Summons to pay (Art. 69 SchKG): The debt collection office serves the debtor with a summons to pay — demanding payment within 20 days and notifying them that an objection can be filed within 10 days.

Objection (Art. 74 SchKG): If the debtor raises an objection, you as the creditor must enforce the claim in court. In the case of a written contract or a signed order confirmation, you can apply for provisional dismissal of the objection (Art. 82 SchKG).

Request for continuation: If no objection is raised, you can request continuation of the debt collection at the earliest 20 days after the summons to pay was served.

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

5. Risk assumption by third parties: When is a BNPL provider with a payment guarantee worthwhile

BNPL providers such as Klarna, CembraPay, POWERPAY and TWINT Pay Later assume the default risk completely. You receive the amount guaranteed — regardless of whether the customer pays in the end. The question is: When is it worth it?

Rule of thumb: BNPL with risk assumption is worth it if your default rate is higher than the BNPL fee. With a default rate of 3 % and a BNPL fee of 2.40 %, you effectively save 0.60 % per transaction with BNPL — and all the effort for dunning and debt collection.

6. In-house 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 purchase on account orders per month, the administrative effort for your own dunning procedure is manageable. From 200 orders per month, outsourcing is almost always more economical.

Default rate: Below 1 % default, own risk with QR invoice is cheaper. From 2–3 % default, the losses exceed the BNPL fees. From 5 % default, BNPL with risk assumption is strictly recommended.

Shopping cart size: With large shopping carts (over EUR 500), every default weighs heavily. Even with a low default rate, individual unpaid orders can tip the monthly result. Here, protection via BNPL or a credit check is particularly important.

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

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

In addition to credit checks and BNPL, there are other preventive measures that reduce payment defaults:

Order limits for new customers: Limit the maximum purchase on account amount for first-time buyers — for example to EUR 100. After the first successful payment, the limit can be increased.

Address validation: Check whether delivery and billing address match. Deviations are a risk signal. Swiss Post offers an API for address validation.

Velocity Checks: Detection of conspicuous order patterns — for example several orders on account within a short time from the same address or IP.

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

Limit open claims: Do not allow a new purchase on account order as long as a previous invoice is still open.

Checklist: Systematically minimize payment defaults for purchase on account

• Calculate your current default rate: What percentage of purchase on account orders are not paid?

• Compare the default costs with the BNPL fees: From when is the risk assumption worth it?

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

• Set up an automatic dunning system: Payment reminder → 1st warning → 2nd warning → collection/debt collection.

• Set order limits for new customers for purchase on account.

• Check delivery and billing addresses for plausibility.

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

• Document your T&C: Dunning fees, default interest and threat of debt collection must be anchored in the T&C.