Third-party billing, or aggregated billing, is an important service that has many benefits for consumers, businesses and the telecommunications industry alike.

Through this service, consumers can make purchases through authorized service providers, online stores, and telecommunications companies, and have charges placed directly on their local phone bill.

How Third-Party Billing Works

Following a rigorous approval process, service providers are permitted to offer consumers the option of having charges for services placed directly on their home phone bill. Services may include long distance, international calling, and operator-assisted calls.

Once a consumer authorizes this method of payment, a billing aggregator forwards these charges to the telecommunications company for inclusion on the consumer’s local phone bill. Charges from all service providers are aggregated onto the consumer’s bill, which is sent by the local exchange carrier to the consumer for payment. The consumer sends payment to the local phone company, which remits payment to each merchant for their services.

To streamline the administration and reduce the costs of these operations, many telecommunications companies and service providers choose to work with a billing aggregator such as Billing Services Group (BSG). Billing aggregators facilitate review and approval of service providers, aggregate charges, ensure merchant payment, and monitor consumer satisfaction metrics.

Benefits of Third-Party Billing

The third-party billing industry serves millions of households and handles hundreds of millions of authorized transactions for consumers each year. Third-party billing benefits individual consumers, as well as businesses of all sizes. By becoming an approved merchant for third-party billing, small businesses are better able to build and grow their consumer base by offering this as one of several convenient billing options.

For millions of consumers, having one bill offers more convenience in accessing services, purchasing content and services and donating to a worthy cause.  It also reduces the number of checks consumers must write to pay their bills, eases management of their personal finances, and provides a payment alternative that does not carry a high interest rate. By managing administration for third-party billing, aggregators also help keep the cost of many valued services low, resulting in significant savings for consumers.