How can you secure debt recovery using payment by link?

Managing debt collection is crucial for businesses, as it directly impacts their financial health and can lead to irreversible failure if the risk of unpaid invoices is not controlled. According to the Banque de France, 25% of business failures are directly linked to payment delays or defaults.   
Professionals specializing in third-party debt collection work daily to secure corporate credit risks, help reduce collection times, make payment reminders more effective, and decrease unpaid debts, all with the goal of ensuring sustainable business growth and development. 

Financial mediation and debt collection firms operate across all sectors and for businesses of all sizes. They must balance efficiency, optimization, creativity, and compliance with legal constraints to provide the best possible support to their clients. 

In this context, digital payment solutions are emerging as a modern and high-performance alternative. Among them, payment by link – or Pay by Link – stands out for its ease of implementation and effectiveness.

Are you a debt collection professional wondering how to accelerate debt recovery? What is a simple and secure solution to encourage a late-paying client to settle their balance? 

In this article, we will explain why and how payment by link can improve your recovery rate, shorten payment lead times, and secure transactions. 

1. Payment by link: an effective debt collection solution for businesses

Before a situation deteriorates and reaches the litigation stage, it is essential to find ways to remain within the scope of amicable recovery: outstanding debts are not disputed, but the debtor is slow to settle them, which complicates the collection process. Unpaid invoices can be intentional or otherwise:  

• Oversight or administrative negligence (lost or unprocessed email, etc.) 
• Non-receipt of the invoice to be paid 
• Intentional delay while waiting for a better cash flow situation. 

During this initial phase of amicable recovery, payment by link is particularly relevant: it is a simple and recommended solution for getting a late-paying client to settle up.  

The main advantages of PayByLink for debt collection:

A seamless, immediate, and non-intrusive experience, payment by link encourages debtors to pay.    

When it comes to managing payment deadlines, every day counts. The longer payment terms drag on, the lower the chances of recovering the debt. That is why it is important touse simple payment solutions and encourage prompt payment.  

Our tips

While effective, payment links have certain limitations to keep in mind: 

• Avoid looking like spam : the link should be sent as part of an ongoing conversation with the client so they feel comfortable clicking it and entering their payment details. For example, the payment email can serve as confirmation of an agreement between the creditor and the debtor. Alternatively, you can include the link in an official company document to reassure the debtor. 
• Card limits : for large amounts, it may be necessary to offer alternative payment methods to cards, such as bank transfer initiation. 

2. Security and compliance: a must for debt collection

Is payment by link a sufficiently secure payment solution? 

There are several security challenges involved in managing and securing outstanding debts: you must ensure debt recovery as early as possible in the collection process while preventing any fraud attempts.  

Using a professional card payment provider that complies with industry regulations ensures these two levels of security in several ways: 

• GDPR compliance: no personal data related to payments is stored or used outside of the rules imposed by GDPR regulations.
• PCI DSS certification: card data is processed by the provider only under strict security rules. No payment card data passes through the IT environment of the company or the financial mediation firm, thereby relieving them of this responsibility. 
• Replace payments by phone: the days of having to give your card number to an operator over the phone for MOTO payments are over. Payment by link offers a more secure and reassuring alternative. (This practice is now prohibited by banks, in any case). 
• Strong authentication to limit fraud: with 3D Secure, payment by link benefits from strong authentication, which provides the creditor with a liability shift and a payment guarantee. 
• Avoid entry errors and disputes related to misallocated transfers 
• Reduce payment disputes: 3DS serves as electronic proof of payment validation. 

By integrating a solution from a certified payment orchestrator, the collection agency improves its image, limits risks, and builds a reassuring relationship. 

3. Best practices for sending

While the tool is powerful, its effectiveness also depends on the context in which it is sent:

• Include the link in a personalized email or an official document (quote, invoice, formal notice) to avoid spam filters.
• Ensure the debtor expects or understands the requested payment (agreement confirmation, clear deadline, etc.).
• For large amounts, offer alternatives to credit cards, such as bank transfer initiation.

Conclusion

Reducing payment delays and limiting the risk of unpaid invoices, improving your recovery rate, spending less time and energy on customer follow-ups, and avoiding the legal litigation phase... Pay By Link provides an additional, easy-to-implement tool to support you in credit risk management and amicable debt collection, making its adoption essential for financial mediation professionals.  

Still unsure about the best practices for quickly recovering unpaid debts? 

You are just one click away from taking the leap!