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

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

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

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

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

Sample calculation: 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 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, meaning EUR 2,120–3,180 per month for 1,000 orders. That is less than the EUR 3,600 loss at 3 % default.

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

2. Credit check before purchase: How CRIF, Intrum, and Dun & Bradstreet work

The credit check is the first line of defense against payment defaults. In Switzerland, there are four relevant credit reporting agencies:

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

Intrum AG: Alongside credit checks, also provides debt collection services. Intrum offers plugins for Shopware and shopify that enable credit checks directly within the checkout process.

Dun & Bradstreet Switzerland AG: Focuses on corporate credit ratings (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 work like this: If a customer selects "Purchase on invoice", the shop system sends an API query to the credit agency in the background. Within milliseconds, a score is returned. If the score is above your defined threshold, the payment method is approved. If it falls below, the payment method is hidden — the customer only sees credit card, TWINT, or other risk-free options.

Important: In Switzerland, you may only query credit data with a legitimate interest and in compliance with the Data Protection Act (DSG). 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

If an invoice remains unpaid despite a credit check, dunning begins. In Switzerland, there is no statutory obligation to issue dunning notices — you could submit a debt enforcement request immediately upon expiration of the payment term. In practice, however, a tiered process that preserves customer relations is recommended:

Payment reminder (5–7 days after due date): Friendly notice that payment is still outstanding. Often this is enough — many payment defaults are simply down to forgetfulness. No dunning fee.

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

Second dunning letter (24 days after due date): Final dunning letter threatening debt enforcement. New payment term 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 emailing payment reminders and new QR-bills.

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

When all dunning letters remain unsuccessful, debt enforcement proceedings under the Swiss Debt Enforcement and Bankruptcy Act (SchKG) are the next step. The procedure:

Debt enforcement request (Art. 67 SchKG): You file a debt enforcement request with 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 on the debtor — requiring payment within 20 days and advising that an objection (Rechtsvorschlag) can be raised within 10 days.

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

Request for continuation: If no objection is raised, you can submit the request for continuation at the earliest 20 days after the payment order has been served.

For online shops with many small claims (EUR 20–200), debt enforcement proceedings are 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 a BNPL provider with payment guarantee is worthwhile

BNPL providers such as Klarna, CembraPay, POWERPAY, and TWINT Pay Later take over the default risk completely. You receive the amount guaranteed — regardless of whether the customer ends up paying. The question is: When is this worthwhile?

Rule of thumb: BNPL with risk assumption is worthwhile when 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 — along with the entire workload for dunning and debt collection.

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

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

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

Default rate: Below 1 % default, carrying the risk yourself with QR-bill is cheaper. From 2–3 % default, losses exceed the BNPL fees. From 5 % default, BNPL with risk assumption is strongly recommended.

Basket size: With large baskets (over EUR 500), each default weighs heavily. Even with a low default rate, individual unpaid orders can ruin monthly performance. Here, coverage via BNPL or a credit check is particularly important.

A pragmatic approach for Swiss SMEs: QR-bill with credit checks (CRIF/Intrum) for regular customers and B2B customers, complemented 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 invoice purchase amount for first-time buyers — for example to EUR 100. After the first successful payment, the limit can be raised.

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

Velocity checks: Identification of unusual order patterns — for example, multiple orders on invoice within a short time from the same address or IP.

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

Limit outstanding claims: Do not allow a new purchase on invoice order as long as a previous invoice remains unpaid.

Checklist: Systematically minimizing payment defaults on purchase on invoice

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

• Compare default costs with BNPL fees: At what point is risk assumption worthwhile?

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

• Set up automated dunning: Payment reminder → 1st dunning letter → 2nd dunning letter → collection/debt enforcement.

• Set order limits for new customers using purchase on invoice.

• Check delivery 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 established in the GTC.