Alternative Payment Methods: eLayaway

[mandy]

eLayaway offers online retailers a no-fee payment method

Consumers pay a fee equal to 1.9% of the purchase price, taking the place of the fee merchants pay credit and debit card issuers. Consumers can take up to 13 months to pay, and once they do the retailer ships the goods and receives payment. Fledgling online payment service eLayaway offers e-retailers a way to accept payments without paying credit and debit card fees. And it offers consumers a throwback payment method: pay for an item over time, then receive the goods once full payment is made, without the monthly shock of a bloated credit card bill....

full article: http://www.internetretailer.com/dailyNews.asp?id=26267

[amy]

pay for an item over time, then receive the goods once full payment is made

...and if they default on their payments you've held an item for up to 13 months that could have been sold to someone else--not only that, but the price you'll receive for that item (if it is consumer electronics, computers, etc., etc) is probably less than you would have received 13 months ago if you had sold it to someone else.  Not interested.

[BellisimaJ.]

you've held an item for up to 13 months

13 months is way too long. 30-60 days would be fine, IMO, but not any longer. And why should the consumer go through a service? The service is not paying the merchant up front (I assume--didn't read it), so how is there any real advantage to either consumer or merchant?