The online billing specialist Internet Payment Exchange announced an alliance Monday with Accelerated Revenue Management Inc. of Ventura, Calif., which does business as ARM Solutions, to offer "soft collection capabilities" on late payments.

The feature gives health-care providers and other commercial billers a way to recover payments that are 60 to 300 days late, before they are declared bad debt.

Payments that are recovered are submitted directly to the client through its existing IPayX payment channels, such as the eInvoice Delivery Service and eCareView Healthcare Billing Portal.

This process helps eliminate confusion among customers about whether they should pay the client or the collection agency.

"Third-party collection agencies often alienate customers and typically charge an average of 32% of collected amounts as payment, but they only collect an average of less than 16% of the accounts," said Brad Jadwin, the president of ARM Solutions, in the IPayX press release. His company's "recovery rates average more than 40%."