Using a credit card for online purchases always make me a bit skittish. Yes, I realize that millions of transactions occur daily with no issues. However, every time I enter the card number, the CVV code, the expiration date and promise that I read the 62 page terms and conditions, I have visions of opening my monthly statement and finding a list of purchases including but not limited to first class tickets, a shopping spree at Versace and a 7-day stay at the Four Seasons Hotel in New York City. The thought of working with the Fraud department to reverse these fraudulent charges makes me think long and hard how much I really want to make the purchase.
There is a much safer option now available for online purchases and that is Mobile Phone Billing. This option has three easy steps: 1) I enter my Mobile number and billing zip code on one screen, 2) wait a few seconds for a text message on my phone containing a unique PIN number, 3) enter the PIN number on a second screen and I am done. Because the PIN number is generated at the time of purchase and is only good for a few minutes for that specific transaction, the opportunity for fraudulent charges to my account are virtually gone. The charges show up on my monthly mobile bill and I have an easy safe alternative payment option!
The fraud risk is mitigated by the unique PIN text. My account and credit is protected, the merchant is protected, the phone carrier (billing entity) is protected and the scammers, fraudsters and thieves are shut out.
ILD’s Mobile Phone Billing option is available today for items that are consumed on the internet; this includes online games, streaming movies and TV, periodical subscriptions, technical support, ID theft protection, web conferencing, satellite radio, and the list continues. Oh – and for parents (and merchants) that are nervous kids may go a bit crazy on the gaming sites – a text is sent to the main billing telephone number so they have an opportunity to reject the purchase! Just by including this alternative billing option to your checkout page, will increase sales. It provides a billing option for consumers who refuse to use credit cards and consumers that do not have credit cards (29% according to a survey on Creditcard.com*). The added benefit is protecting your revenue from credit card chargebacks on fraudulent credit card charges!
Image Courtesy of Report-Online-Scams.com.
You’re already using the 4 P’s (product, price, promotion, and place) to maximize revenue—but your marketing strategy may be missing the 5th P: payment. Digital stores cannot live by credit cards alone. In fact, merchants who want to maximize their conversion rates need to offer alternative payment methods (APMs) to their shopping carts. Let’s consider a few facts:
Consumers want and need alternative ways to pay for digital products and services.
The good news is that if you’re a merchant who sells digital products and services (content, software, downloads, subscriptions, gaming, etc.) you can offer an LEC billing option, such as ILD Teleservices’ Bill to Phone. What does this alternative payment method, which allows ecommerce shoppers to charge transactions to their phone bill, do for merchants?
Whether you’re selling industry reports for the C-suite or online dating subscriptions for seniors, phone billing allows you to expand your reach and boost conversion. To learn more about lifting revenue with an alternative payment method, like Bill to Phone, contact the payment team at ILD.
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Are you one of the 15 million to 20 million people the FTC estimates are crammed each year? Cramming is when a company adds unauthorized or deceptive charges to a consumer’s phone bill. One of the reasons cramming is so common is that the amounts charged are often small, usually only a few dollars. As a result, many consumers don’t notice they’re paying extra for a product or service they didn’t order. So how can you stop cramming?
As a third-party payment processor, ILD Teleservices works closely with its partner merchants to ensure accurate billing. We screen merchants before we work with them, monitor them to make sure they comply with good business practices, and require them to verify authorization of billing. Learn more about the ILD Consumer Protection Standards of Practice.
If you have questions about a bill, please visit our Help Center.
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You see consumers latching onto the gamification craze, whether they’re having fun in GagaVille or comparing running stats on Nike+–so how do you take advantage of this exciting new way to engage audiences and nurture long-term relationships? Here are five steps to get you started:
For more info, check out What is Gamification for Business? A Beginner’s Guide.
When it’s time to integrate payments into your gamification strategy, contact ILD Teleservices to learn how our LEC billing system, Bill to Phone, will make transactions seamless and safe.
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