Five Modern Strategies to Lower Collection Costs in 2026

Every business is constantly looking for ways to lower costs and optimize its revenue cycle. However, for contact centers in the collections industry, achieving this goal requires a specialized approach.

In fact, lowering collection costs and improving metrics like cost-per-dollar-recovered in 2026 requires ditching outdated methods, such as adding more callers, and shifting to newer strategies, like artificial intelligence (AI)-powered automation. 

Wondering exactly how you can successfully lean into automation technology in your accounts receivable management (ARM) contact center to maximize your profits? Keep reading to discover five modern strategies to lower collection costs in 2026.

1. Implement agentic AI 

Agentic AI contact center solutions are capable of taking key tasks within the collections process, such as having dynamic conversations with debtors in real time, off your agents’ shoulders. 

Think about how much more expensive it is to pay agents to handle the negotiation process than it would be to allow technology solutions, like TCN’s AI-powered Virtual Agents, to do so. Plus, not only will embracing AI improve your cost-per-dollar metrics, but it will also help reduce compliance stress because Virtual Agents automatically stay in line with complex, ever-changing regulations. 

2. Adopt payment propensity scoring (PPS) 

If you treat all of your debtors the same, you won’t collect as much as you could. That’s where PPS comes in! PPS analyzes consumer data to help you predict the best course of action for collecting on each individual account. You can then segment customers into groups based on this behavioral and financial data, so you can rest assured that your collection strategies are fully optimized. 

For example, AI-enhanced PPS can reveal which debtors may pay on their own without additional outreach, who may need a nudge and even who may be experiencing financial difficulties and therefore need additional help.

When adopting PPS into your ARM contact center, it’s important to ensure you’re using the right data and to continue re-evaluating your strategy to achieve continuously optimized results. 

3. Enable a true omnichannel collections approach

Not only are call-heavy collections strategies expensive and ineffective, but they also often frustrate customers who want to pay on their own terms. Sending a personalized text message with a one-click payment link can not only increase consumer engagement but also cut costs.

In your endeavor to successfully utilize an omnichannel collections strategy, ensure you’re supported by a trustworthy contact center software platform. Not only does TCN empower you to seamlessly collect payments on any channel, but it also features top-notch, 24/7 customer support from dedicated account managers who are truly vested in your success.

4. Provide integrated self-service payment portals

However, simply giving debtors the option to make payments on any channel isn’t enough. You also need to make a secure, mobile-friendly self-service payment portal available. Not only is this the most convenient option for many customers because it enables instant transfers and the ability to set up a flexible payment plan on their own schedule, but it can also be a significant contributor to improved consumer satisfaction.

TCN’s Interactive Voice Response (IVR) solution makes it easy to boost self-service payments for both your contact center and your consumers by effortlessly integrating with Operator, TCN’s contact center software platform, and featuring a user-friendly interface. 

5. Transition to point-of-service (POS) collections

If you really want to lower your collection costs in 2026, transitioning to POS collections could be one of the most effective ways to do it. This is because by obtaining a payment or setting up a payment plan at the time of service, you eliminate the need to spend your valuable resources chasing a payment afterward.

Key components of a successful POS collection strategy include setting clear, attainable key performance indicator (KPI) goals and ensuring your agents are continuously trained on everything they need to know to most effectively meet those goals.

Optimize your ARM contact center with TCN

TCN helps contact centers in the ARM industry apply these five strategies to improve profitability and meet collections goals through automation. But when you choose TCN, the perks don’t end there. In fact, you’ll also be able to take advantage of adaptable compliance tools, continuous agent training and A+ customer service. 

Learn more about exactly how TCN can transform your collections contact center by optimizing your KPIs, cutting costs and helping you keep up with AI here.