Third-party billing is a form of billing where an intermediary handles the invoicing and payment between a purchaser and a vendor.
In telecommunications, it can refer to an operator-assisted telephone call, usually in conjunction with the assistance of a live or automated telephone operator.
It can also refer to a service that allows consumers to make purchases through authorized merchants, service providers and telecommunications companies, and have charges placed directly on their local phone bill.[1] This service benefits consumers, business merchants and the telecommunications industry by offering an alternate payment option.[2]
Third party billing serves millions of households in the United States, and handles hundreds of millions of authorized transactions for consumers and businesses each year.[3] Several businesses, including Fortune 500 companies, choose to have their services included on their phone bills to reduce administrative needs and costs.
Approximately 75 percent of adults nationwide use landline telephones to stay connected. Each year, millions of consumers choose to have charges for a variety of third-party services placed directly on their landline phone bill.[4]
The ability to pay for multiple services through one bill with a single payment helps to keep costs low, saving consumers money on valuable services such as long-distance and international calling, operator-assisted calls, Web hosting and design, voice mail and Internet services.[5]
In transportation, third party billing is the transference of transportation charges to a party other than the shipper or consignee.