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Cutting up credit cards
As our economy slowly recovers, there are still many changes to business strategies and decisions to come that will continue to affect the everyday credit card consumer. Many credit card companies continue to change their guidelines and credit score requirements as they prepare for a continuous increase in defaults.
The result for online merchants will be a steady decrease in available consumer credit and thus resulting in a fewer sales. The online merchants who implement alternatives now have a chance to make-up for the loss in credit card purchases by introducing ‘bill me later’ type alternative payments, like Bill to Phone also known as LEC Billing.
From a processing and billing standpoint, Bill to Phone operates similarly to a credit card. The consumer makes a purchase, and the merchant transmits consumer and transaction data in real time via a secured network connection to iValidate (ILD Teleservices’ validation platform). The buyer information and account is verified by ILD through the authorization request submitted by the merchant.
Alternative payment options allow a much larger consumer base to still take the advantage of buying items online, and instead of entering credit card information, the buyer inputs their telephone number to authorize payment via their phone bill.
Would it help you if were trying to sign up for an online service and you didn’t have to pull out your wallet, find the right card, try to read the tiny digits and instead you simply just provided your phone number and add the charge to your phone bill? There are lots of people who have wanted to make purchases online but couldn’t because either the merchant only accepted specific credit cards, or the buyer just didn’t have a credit card. I know I’d rather save my credit card (and all that ugly interest) for bigger ticket items and put my smaller charges, like move downloads, music downloads and even games on my phone bill.
If you are interested in reading more about the impending changes in the credit industry, they are covered in the following articles.
Citi Dumps Credit Card Customers at the Pump – http://www.ecommercetimes.com/rsstory/68452.html
BofA Won’t Hit Customers With Rate-Hike Squeeze Play – http://www.ecommercetimes.com/rsstory/68318.html
Last Minute Credit Card Tricks – http://www.nytimes.com/2009/10/17/opinion/17sat3.html?_r=1&emc=tnt&tntemail1=y
Regulatory Manager by day and talented photographer by night - that’s our Marsha! Marsha has been at ILD since 2003 and was hired to monitor all state and federal regulatory agency issues. Her job is to ensure ILD complies with all the various telecommunications rules. This month she’s been chosen for the employee spotlight not only because of the great job she does at ILD, but also for her extra-curricular activity as a photographer.
Marsha recently showed some of her photographs at North Florida Community College. The most popular of her pieces depict bubbles in various “poses”. The viewers enjoyed the bubbles as they tried to imagine how they were captured. “It was a ton of work but rewarding at the same time to see an accumulation of pretty things you were able to capture”, said Marsha about her exhibit.
- How long have you worked at ILD? Since January 2, 2003
- What positions have you had at ILD? Manager – Regulatory Compliance for the entire time!
- What do you like most about your job and working for ILD? The job is a perfect fit for me and my skills so it’s a job I really enjoy. Plus, the people here are good people.
- What do you find most challenging? Explaining complicated regulatory issues in a way that makes sense to everyone else, especially if they aren’t familiar with regulatory perspectives.
- Tell us about your art. I started taking 35mm photos about the same time I started at ILD. We lived in a wetland area and there was so much wonderful wildlife and scenery that I wanted to try to capture it all. I got hooked and now that I have a digital camera the possibilities are endless. What I try to do in my photos is to capture one aspect of every subject that is intriguing but that people may not see under normal circumstances, or to capture the image in a way that people may not have seen before.
- How many siblings do you have? 3 brothers and 1 sister
- Do you have any pets? The neighbor’s dog thinks he’s mine. I let him think so.
- Do you play an instrument or sing? I used to sing.
- Favorite song: Imagine by Mercy Me
- Favorite movie: Meet Joe Black
- Hobbies: Photography, sewing (quilts mostly) & gardening. I grow most of the flowers I photograph.
- Favorite vacation spot: Any oceanfront condo (especially if it’s on the 8th floor at a private beach!)
- What did you want to be when you grew up? A flight attendant
- Favorite time of the year and why: Fall, because I love to watch the leaves “turn”, plus the weather is so beautiful and crisp.
- Favorite sweet treat: My mom’s coffeecake
- Favorite childhood meal: Tacos
- Favorite childhood/past time memory: Week-end trips to New Mexico’s lakes and rivers or taking in the beauty of the canyons in Los Alamos.
- Favorite thing to do on the weekend: Spend time with my family and work in my gardens.
Today at ILD, we’ve released the latest version of our merchant website ildbnc.com. This upgrade will give our customers more visibility and the ability to quickly correct potential chargeback issues and improve their overall return. With the current economic changes, merchants are recognizing the value added by offering a bill to phone or “no credit required” option as an alternative payment method. As our merchant family continues to grow, we’re a step ahead with the latest technology and tools avalable to support their growth!
The addition of this latest “alert” module helps merchants see more detailed information and allows them to take steps to correct billing issues in a proactive manner. The first of many chnages to come in a suite of analytical data available to our merchants at ildbnc.com. Read more hereor check out the story here.
How Can They Seriously Not Get It?
After a lengthy hold time with my cell phone provider last weekend (45 mins), I was so ready for on online customer service option – a DIY, if you will. Let’s be honest, you would have been a little impatient after 45 minutes, too (and that doesn’t include the time I spent being transferred from place to place). Anyway, I know I am not alone in my pursuit of quality customer service.
How can I be so sure, you might ask? This study from Yankee Group quantified the facts for me, and the stats didn’t surprise me one bit. Would you believe that 62% of users “want to bypass automated systems and be given an opportunity to use their mobile phone screen or PC to complete simple inquiries that should not require agent intervention?” Of course I believe it – I am one of those people and that’s why tools like ILD’s Self Help Center are so innovative. Finally, an online customer service application which allows you to check on charges, contact your merchant, even cancel or credit your service without ever holding for 45 minutes.
Let’s face it, we’re living in the here and now and we all want instant gratification and tools that give us control, rather than having to wait on someone else to take care of things for us. How can I be so sure? Here’s another stat from the same Yankee Group study – “[more than] 80 percent of users surveyed want the ability to complete an entire customer service interaction – such as paying a bill or upgrading an account – directly on their mobile device versus enduring long wait times for a live agent.”
Who doesn’t want direct access to immediately take care of billing issues or customer service problems on their time and at the speed of however fast their fingers can type? I welcome your comments!
Found a service online that you’d like to sign up for? Need to add points to an online game that you’re really enjoying? Heard about a new diet program on-line and want to start it right now?
As you’ve probably already experienced when you get to the point where you want to purchase something online, you see that your options for payment are either credit card or Paypal. Paypal is of course another form to pay on your credit card but with added security. But what if you are part of the 23% of US households who don’t have a credit card? What if you don’t want to add to your credit card balance and risk paying more in the end for your online purchase? Or, what if your credit card company just increased your APR from 12% to 24.99%, like the BoA consumer Rockerchic4God (search video on YouTube) who launched debtorsrevoltnow.com? As our economy tries to climb slowly out of the recession, we are all still gun shy with our spending and trying to get the most for our money, without paying all those surcharges and fees.
So, given the option to purchase an item online without spending any extra on credit card fees or interest rates, wouldn’t you? Would you benefit from knowing that you can make the purchase now, haveit added to your phone bill and pay it on a monthly basis? Well according to researchers like Jupiter, more consumers want just that. Jupiter’s study claims 48 percent of all online adult shoppers prefer the convenience of alternative payment methods. So, you have the luxury of purchasing an item without the risks of using a credit card and if you don’t have one, you’re not left out! Alternative payment methods, like bill to phone, gives consumers an extra month to pay for purchases. When I use a debit card to make purchases, the banks withdraws the funds from my account immediately. Oh, and if the account is a penny short, you know how the banks love to tack on those overdraft fees. Allowing you to add charges to your phone bill is a convenient, no risk, consumer friendly way to make a purchase online for certain items in which merchants have chosen to give you that option.
I think that given the credit card crisis and the recent consumer revolts, there is a market for other forms of e-currency (without the use of credit cards). So why not alternative payments like bill to phone? What do you think?
Marketing your products and services online can sometimes be difficult, as a mechant. You want to generate brand awareness, aquire new customers, and limit your exposure to bad debt. It’s not that easy, though, is it? We hear you. So, we’ve outlined some best practices merchants can use when marketing consumer products on the web. These webinars can be found on YouTube and Vimeo.
Example of Social Media Marketing on Facebook
It’s a given that merchants continually look for new ways to increase revenue and on the flip side, reports show that online consumers look for payment options at checkout. So watch the clips, which aim to inform merchants on the does and don’t of online marketing.
If you are a YouTube fan, you can view ILD’s “Web Marketing Best Practices” on YouTube hereor enter “ILD Teleservices” in the search box of YouTube. The same webinar can also be found in a different viewing format on Vimeo hereor search mouse over Explore, choose Channels and enter ILD Telecommunications.
After you watch the webinar, if you have any questions about online marketing or want to discuss ILD’s services, please contact us.
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