What is the best way to handle higher risk accounts?

Until a payment history has been established, higher risk accounts should be asked to pay cash in advance (CIA); collect on delivery (COD); or with a credit card. Credit cards are the best approach—using a credit card does not carry the stigma of CIA and is easier to administer than COD.

Using a credit card has advantages for the seller and the buyer. The seller is paid quickly and the buyer receives the product or services they need. The buyer also does not have to pay until their next credit card statement arrives.

However, there are costs associated with using credit cards. The customer may incur interest charges and the company might have to pay transaction fees for processing the card.

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