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.