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Buying on account is popular and offers various advantages over other online payment methods, including the chance to check the goods before paying, flexible payment terms and data security.
In Switzerland, buying on account is one of the most popular payment methods in online retail. According to the 2023 Swiss e-commerce trend indicator, around 71% of Swiss people regularly use this option when shopping online.
It’s a simple process: after selecting a product in an online shop and placing it in their shopping cart, customers can often choose the “Buying on account” payment method when checking out. In some cases, names like “PostFinance invoice” or “eBill” are used. If the customer chooses this payment method, the retailer will first check the customer’s creditworthiness via an inquiry carried out in the background. If the creditworthiness check is successful, the order will be confirmed and the invoice will be sent to the customer at the same time as the goods. The buyer then generally has up to 30 days to settle the outstanding invoice amount.
Many online retailers work with specialized payment processors such as Klarna or Byjuno to offer this service. These providers take care of the entire process – from creditworthiness checks and invoices to debt collection in the event of non-payment. For retailers, this means a significant reduction in workload combined with protection against payment defaults, while customers benefit from a convenient and trusted payment option.
Buying on account offers customers a high level of security. They can check the goods they have purchased at their leisure before having to pay for them. At the same time, the payment period granted by the retailer gives them extra time to settle their invoice. Buying on account can be a particular advantage because it enables customers to make urgent, unexpected purchases that weren’t originally part of their monthly budget. Especially in new or unfamiliar online shops, it’s a transparent and customer-friendly payment method – making it a key factor for building trust.
The extra payment period that you allow yourself when buying on account can also have its pitfalls, as you still have to pay by a certain date. A payment deadline can easily be missed in the hustle and bustle of everyday life, which can lead to reminder costs or even debt collection proceedings. Even the role of the payment processor can lead to confusion, because suddenly you may find that you don’t owe money directly to the online shop, but to a completely different company. This can also be a problem if you need to make a complaint.
People who tend to make impulse purchases without keeping an eye on their budget should only choose buying on account in exceptional cases. The risk of overindebtedness increases if you put off payments until a later date. The creditworthiness checks carried out by online shops are not always sufficient to ensure that the customer can afford the goods without getting into financial difficulties.
Fake stores may suggest the possibility of buying on account in order to make themselves seem reliable. If you are asked to pay immediately despite selecting “Buying on account”, it’s best to cancel your purchase.
Buying goods on the Internet can involve a number of uncertainties. Sometimes, pictures on websites aren’t very informative, and size information, quality promises or even customer reviews can’t always be trusted. Buying on account allows you to check the goods first and – if you change your mind about your purchase – to return them before the payment deadline without having to pay in advance. This also makes it easier to send goods back if you don’t like them. For less solvent customers, it can be an advantage not to have to pay for goods until later. Especially when it comes to items that are needed urgently. For people who are reluctant to disclose their bank details on the Internet and who find data security particularly important, buying on account is a way to play it safe. What’s more, many Swiss payment-processing companies offer flexible installment models for buying on account. In addition, buyers can generally assume that online shops that offer buying on account as a payment method are reputable and offer goods of acceptable quality.
There are many other popular payment methods in addition to buying on account. Credit cards are another tried and tested method of paying for products online or elsewhere. Cashless payment by credit card is convenient in many situations, and payments in online shops can usually be completed in just a few clicks. Many card providers also offer protection against fraud or non-delivery of goods. When making a purchase with a credit card, payment is usually not due until the end of the month; some card providers allow payment in installments. Bonus points and cashback make shopping with a credit card even more attractive.
The TWINT payment service is a Swiss mobile payment solution that allows users to pay conveniently via smartphone. Payments are made via QR codes or contactless payment. Customers can link their bank account to TWINT, which enables fast and secure debits. If you choose the “Pay later” function in TWINT, you can request a 30-day payment deferral.
Many online shops offer PayPal as a payment method. After selecting PayPal at the checkout, customers are forwarded directly to the secure PayPal login page. Payment is made either in real time, after a period of 30 days or in installments. If a customer decides to ask for a refund, PayPal’s buyer protection is responsible for dealing with the request, and the process can require time and effort.
If you pay by instant bank transfer, the amount is debited from your account immediately when you place your order. This way, you won’t be tempted to overuse your own credit. However, if there are any problems with the goods you have bought, you will have to rely on the retailer to refund you. With an instant bank transfer, you have to log in to your bank and enter a transaction number. This poses a certain security risk, but the risk remains low if you are shopping with a reputable and well-known online shop.
Creditworthiness indicates a person’s ability and willingness to reliably meet outstanding payment obligations. A creditworthiness check covers a large number of parameters, including payment behavior, level of debt, debt collection history – sometimes even how often you have moved house. The creditworthiness check process for buying on account begins as soon as you have confirmed your shopping cart in an online shop and submitted your customer data. The data is checked in real time.
In Switzerland, online shops must specify a clear payment deadline for buying on account, which is usually 30 days, unless other payment terms are specified on the website. If a customer falls into arrears, reminder fees or interest on late payments may only be charged to a reasonable extent. Debt collection is subject to strict rules in Switzerland. Excessive additional costs are not permitted.
In Switzerland, buying on account is a binding obligation – which means there is no automatic right of objection. Consequently, online retailers are not obliged to take back goods if you subsequently decide you don’t want to keep a product.
In practice, however, many stores are accommodating: for reasons of customer friendliness and service quality, they still allow returns. If in doubt, it’s worth taking a look at the General Terms and Conditions (GTC). If returns are permitted, the following points should be mentioned in particular:
One of the most avoidable mistakes people make when buying on account is not meeting the payment deadline. You should use an app, the reminder function on your smartphone or a calendar to remind you of any payment dates. You should always take a careful look at unfamiliar online shops before making a purchase, for example by researching the experiences of other users and checking the seal of approval, legal information and contact details.
If you tend to make hasty decisions when shopping, you should force yourself to take a little more time before going ahead with a major purchase. If you encounter problems with the delivery or the goods, you should first contact the retailer, and then the payment service provider.
Buying on account is an extremely popular option in online retail and offers several advantages for consumers. Especially if the goods don’t meet your expectations, you don’t have to wait for a reimbursement after returning them. Before making an online purchase, you should always check whether the provider grants a right of objection. This is not mandatory under Swiss law, but many online shops still offer the opportunity to return products. As the payment deadline is in the future, you should be very careful not to miss it. Otherwise, you may incur reminder fees or, in the most unpleasant cases, even find yourself the object of debt collection proceedings.
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