Low-cost alternative payment methods touting greater security gain market share

[Kristijntje]

Low-cost alternative payment methods that tout greater security are challenging credit cards` hold on e-retailing.

There are few things more important and more vexing to online retailers than deciding which payment options to accept. The major brand credit cards—American Express, MasterCard and Visa—have been the online payment methods of choice since Internet retailing was born.

However, some e-retailers—particularly small start-ups—can’t afford the high cost of credit card acceptance, and, in many cases, can’t even get a merchant account. And all e-retailers know that credit and debit cards come with a built-in problem: Many consumers still will not use their cards online because of fear over releasing financial and personal information into cyberspace...

On the cost side, alternative payment options often come in the form of hybrids that can help retailers cut expenditures or boost revenue. What’s more, these alternatives can bring in shoppers who don’t qualify for credit cards or have bank accounts. As for security, many of the options eliminate the need for consumers to submit confidential information such as credit card and bank account numbers to merchants, helping alleviate fears of identity theft.

full article: http://www.internetretailer.com/article.asp?id=20358

[BellisimaJ.]

Online ­merchants on average offer ­customers 3.5 payment methods, up from 2.1 in 2005, according to a new survey by CyberSource Corp., an e-commerce payments processor and fraud-prevention services provider. Larger merchants—those with more than $25 million in annual online sales—offer 4.7 payment methods, up from 2.6 a year ago.

Essentially every online retailer has to support plastic, says

I would be interested in hearing what others here are offering in terms of forms of accepted payments. Does anyone still accept checks/money orders, etc., sent through snail mail? Does anyone use "Bill Me Later"?

[cranky_hippie]

I would be interested in hearing what others here are offering in terms of forms of accepted payments. Does anyone still accept checks/money orders, etc., sent through snail mail?

Ditto! And if you do offer forms of payment other than credit cards, how often are they actually used?

[xppman]

Apx. 98% of my customers pay via CC now.
Way up from like 5 years ago when checks and MO's
were more like 40% paid via snail mail.

Offering options is a good idea but offering too many
online cc payment methods can also be confusing to your customer.
From my experience, it seems people are not particularly looking for a
any particular BRAND of cc payment processor.
They just want to be able to pay quickly easily and be out the virtual door.

So I offer two cc payment processors LinkPoint and PP.
Also still accept checks and MO's as well.

Oh and out of those cc payments....Apx. 99% NOW, DON'T pay with PP anymore.  LOL

[cranky_hippie]

How about e-checks? How often do people choose that option?

[xppman]

My MA is eChecks capable as well as my Mal's check out
and I also have a virtual terminal if need be.
But you MUST comply with strict rules to use the eCheck thing.

By now I think most peeps are becoming more savvy and want to
use the protections afforded them by thier cc providers.

[xppman]

PS... if you are strictly a PP user.
Please follow this sound advise.

NEVER LEAVE MONEY IN YOUR PAYPAL ACCOUNT.

[cranky_hippie]

I cut off e-checks thru BarfPay and I did not plan to accept checks on my websites. The last check that I never got made that decision for me.

But I wonder if I will be hurting myself by not offering those options.

[xppman]

Probably not.
Like I said, most peeps seem to want to
use the protections afforded them by thier cc providers.

They can also pay via debit card too.
So that's really like an eCheck to me.
I just offer the traditional payments options
and think all should, because there are STILL
some people for what ever reason, will pay via a paper check.

Now if you are offering PP only it may not really be a
problem either because if you set your preferences at PP
so people DON'T have to sign up to pay. It should be cool.

[thentavius]

We accept credit cards (merchant account), checks, money orders, cashier's checks, PayPal, Google Checkout, and eChecks.

I'd like to offer BillMeLater sometime as well.