bad debt

Customer failing to pay for the merchandise or service received on a bill me later basis (a.k.a. post-paid scheme or one that is based on shipping merchandise with the receipt to be paid). In the case of magazines, two to three issues are usually sent before service is suspended because of nonpayment.

Bad-pay file is a list which serves as a purge file in a merge/purge to delete these individuals from the promotion list, thus reducing the probability of incurring bad debt expense. Bad-pay lists may be maintained by a single marketer for his use or may be maintained by a supplier who accumulates bad-pay data from several marketers and sells the information to others.

Synonyms: bad pay

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