Collections representative vs service representative

The differences between collections representatives and service representatives can be seen in a few details. Each job has different responsibilities and duties. It typically takes 6-12 months to become both a collections representative and a service representative. Additionally, a collections representative has an average salary of $34,015, which is higher than the $33,692 average annual salary of a service representative.

The top three skills for a collections representative include payment arrangements, customer service and delinquent accounts. The most important skills for a service representative are customer service, client service, and patients.

Collections representative vs service representative overview

	Collections Representative	Service Representative
Yearly salary	$34,015	$33,692
Hourly rate	$16.35	$16.20
Growth rate	-8%	-4%
Number of jobs	85,275	210,671
Job satisfaction	-	5
Most common degree	High School Diploma, 33%	Bachelor's Degree, 51%
Average age	46	40
Years of experience	12	12

What does a collections representative do?

A Collections Representative's role is to collect payment for outstanding or overdue bills through phone calls, email, mail, or sometimes personal appointments. A Collections Representative is required to have a great deal of research and communication skills in order to reach out to people and explain how to settle their debts or even negotiate a payment term or plan. Collections Representatives must also make sure that these terms are honored and met, and create reports for the creditor regarding the delinquent accounts.

What does a service representative do?

Service representatives handle customer inquiries, requests, complaints, and other general feedback. They are usually the first point of contact with the company's customers. Service representatives are expected to be familiar with all of the company's products so that they can answer all inquiries made by the customers. They should also be familiar with company policies and guidelines on sales and customer handling so that they can address concerns and feedback. They are usually the ones who try to resolve customer complaints by sending issues to applicable departments and ensuring that customers are satisfied with the company's products and services.

Collections representative vs service representative salary

Collections representatives and service representatives have different pay scales, as shown below.

	Collections Representative	Service Representative
Average salary	$34,015	$33,692
Salary range	Between $26,000 And $42,000	Between $24,000 And $45,000
Highest paying City	San Ramon, CA	New York, NY
Highest paying state	California	New York
Best paying company	University of California, Berkeley	Northern Trust
Best paying industry	Finance	Government

Differences between collections representative and service representative education

There are a few differences between a collections representative and a service representative in terms of educational background:

	Collections Representative	Service Representative
Most common degree	High School Diploma, 33%	Bachelor's Degree, 51%
Most common major	Business	Business
Most common college	-	-

Collections representative vs service representative demographics

Here are the differences between collections representatives' and service representatives' demographics:

	Collections Representative	Service Representative
Average age	46	40
Gender ratio	Male, 30.6% Female, 69.4%	Male, 39.6% Female, 60.4%
Race ratio	Black or African American, 12.2% Unknown, 3.9% Hispanic or Latino, 18.9% Asian, 3.4% White, 61.1% American Indian and Alaska Native, 0.5%	Black or African American, 11.0% Unknown, 5.3% Hispanic or Latino, 20.6% Asian, 6.8% White, 55.7% American Indian and Alaska Native, 0.7%
LGBT Percentage	8%	7%

Differences between collections representative and service representative duties and responsibilities

Collections representative example responsibilities.

Protect A/R assets by managing a portfolio of accounts to maximize gainful sales and reduce debt losses.
Maintain effective communication and utilize negotiation skills with internal and external customers to effect collections while maintaining customer good will.
Submit all reconsideration and appeals if need.
Conduct periodic data cleaning of queues balances deny with deny appeals.
Resolve valid or authorize NSF charges due to decline credit cards or ACH transactions.
Collect and count inventories, reconcile purchases and scan UPC's and inputting price information.

Service representative example responsibilities.

Utilize QuickBooks to manage patient's payment for hearing aids and various equipment.
Join online marketplace specializing in local deals to manage customer engagements while providing industry-best service.
Manage customer relations with internal personnel, group administrators, brokers and members as related to Medicare insurance.
Involve great interpersonal skills and upselling.
Provide excellent customer service via ZenDesk e-mail platform.
Counsele individuals who are applying for or receiving TANF.

Collections representative vs service representative skills

Common collections representative skills

Payment Arrangements, 14%
Customer Service, 13%
Delinquent Accounts, 9%
Past Due Accounts, 6%
Customer Accounts, 4%
Debt Repayment, 4%

Common service representative skills

Customer Service, 9%
Client Service, 8%
Patients, 7%
PET, 5%
Front Desk, 5%
Veterans, 5%

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Office and Administrative Industry
Collections Representative
Collections Representative vs Service Representative

Updated January 8, 2025

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