Not only when a product is purchased on credit, but also in a delivery on account secure online merchants with a credit check against the default. To protect against dealings with high-risk customers, many online retailers use a credit check to determine how the new customer is financially ordered.
Definition of the term credit check
Of course, before a mail order company ships goods of higher value on account, he would like to know if the new customer is even able to pay the outstanding invoice. For this reason, a so-called scoring is carried out before shipment and order confirmation . In this case, certain personal data is transmitted to a credit agency.
Scoring is a mathematical-statistical process that determines a probability statement for payment based on experience. The features that are considered here are:
- household income
- marital status
- payment history
The result is then a value, the so-called score. This is classified from excellent to very weak. Depending on this result, the order will be shipped or not.
Tip: If you would like to know how your own credit rating is, you can do a free credit check on Score Compass .
Federal Data Protection Act must be taken into account
A trader who wants to conduct a credit check must have the consent of his customer. Because according to the Federal Data Protection Act, this is only allowed if the customer has agreed. If, on the other hand, a purchase contract is agreed with a prepaid payment, such as prepayment, PayPal or bank transfer, then data may not be collected for a credit check because the seller is not at risk of default.
Exceptions to this are deliveries in which the online retailer itself enters into advance performance. Because then a delivery before payment is carried out, for example, the aforementioned purchase on account. In this case, the credit check serves the seller for the protection of the legitimate interests and a data collection is permitted in accordance with § 28 paragraph 1 no. 2 BDSG .