Gamification: it seems to be the biggest buzz word since tweet rocketed into everyday usage just a few years ago. This beginner’s guide will help you sort out what it is and why it might be right for your business.

What is gamification?

It’s a term that describes the incorporation of gaming techniques and mechanisms into business and other non-game environments, like employee training. The goal is to keep consumers and others engaged by making online experiences fun and rewarding, according to Wharton’s Kevin Werbach, in a conversation with Knowledge@Wharton.

And gaming components are becoming big for business. Gartner predicts that more than 50% of businesses that manage innovation will gamify their processes by 2015. And, this fall, the University of Pennsylvania Wharton School will offer an MBA course about gamification for business.

What are examples of gamification?

• Foursquare badges
• Rewards programs, such My Coke or Starbucks Rewards
• Nike+, which allows runners to track their progress and compare it against their friends’ progress
• GagaVille, the Lady Gaga-themed version of FarmVille

But gamification isn’t just for B2C companies. It also offers potential for B2Bs and even internal employee engagement programs, tech company Bunchball founder Rajat Paharia told Knowledge@Wharton.

Is gamification right for your business?

The addition of gaming components encourages involvement and engagement (often the long-term kind), and, internally, it stimulates innovation. It’s also LEC and mobile billable, making it easy for brands to complete gaming-related transactions with consumers.

Check back soon to learn more about how to make gamification work for your business.

Image courtesy of Stephen Davies on sxc.hu

What is phone billing? If you’re shopping on a website that sells digital services, such as gaming or downloads, you may see an option to charge the purchase to your telephone bill. But is this a safe way to pay online? How does phone billing work? Is it the same as cramming?

Here is a consumer FAQ guide to shopping smartly and safely with phone billing:

What is phone billing?

Phone billing allows online shoppers to buy ecommerce services and charge the transaction to a telephone bill. It’s not a credit card transaction, so you pay no interest or other fees that big banks tack onto credit card sales. When the transaction shows up on your phone bill, you simply pay it along with the rest of the bill, using whatever payment method you normally use, such as a check or money order. The entire transaction is handled by a third party payment processor, like ILD Teleservices.

But is this a safe way to shop online?

Absolutely! When you charge a purchase to a phone bill there are no credit card or bank account numbers to share over an Internet connection—and that significantly reduces your risk of identity theft. You’re not asked to provide any sensitive financial information; you’ll simply give your phone number as well as information to verify your identity.

Will I become the victim of cramming if I pay for digital goods through phone billing?

Cramming is when a consumer is subject to unauthorized charges on a phone bill. A reputable payment processor works very hard to ensure that customers are billed only for the goods and services they have ordered. At ILD, we take proactive steps to protect consumers from cramming. For instance, before we agree to handle phone billing for a merchant, we conduct a rigorous screening process to ensure that company maintains appropriate business practices.

If you ever have a question about an ILD charge that appears on your phone bill, we welcome you to contact our help center.

The volatile economy is causing many consumers to be more mindful of their wallets. Will they have a job in 6 months? How high will credit card interest rates rise? These are the discussions millions are having around their kitchen tables. In fact, the August 7^th Bloomberg Consumer Comfort Index showed that consumer confidence dropped to its second-lowest point of the year.

Digital merchants who want to succeed in these uncertain times need to take action.

One of the simplest paths to easing consumers’ concerns and making their decision to spend money on your ecommerce store easier is by offering alternative payment methods (APMs), like phone billing. This payment alternative works by allowing consumers to purchase digital goods and services, like downloads or Internet services, by charging the purchase to their phone bill.

Phone billing saves consumers money.

Shoppers spent less on credit cards during July 2011, according to a First Data report. As credit card companies increase interest rates and impose steeper penalties on late payments, plastic is becoming a less attractive way to pay for ecommerce products.

Digital merchants who add a phone billing option to their shopping cart give consumers a no-additional-cost way to complete the transaction. Shoppers aren’t forced to pay interest or fees to banks in order to get the goods and services they want. It’s a win for the customer; and that means it’s a win for you, too.

To start integrating consumer-friendly phone billing into your ecommerce store, contact ILD Teleservices, a leader in the third party payment processing industry. Our Bill to Phone alternative payment method offers timely settlements, increased customer satisfaction, and an easy-to-integrate interface. Learn more today.

Selling digital goods and services to the lucrative college set isn’t always easy. While it’s challenging enough to stay ahead of trends and fads, it can be even trickier to find the perfect ecommerce payment method to offer. Why? Not every college student has a credit card, and those who do may not want to add to their debt by making online purchases.  

Here are a few facts about young adults and credit card use:

• Only 51% of 18-24 year-old Americans had used a credit card in the preceding month. (creditcards.com,  from Javelin)
• The average credit card balance for undergrads is about $3,100. 21% of those had balances between $3,000 and $7,000. (creditcards.com,  from Sallie Mae)
• Only 17% of credit card using students paid off their balance each month. (creditcards.com,  from Sallie Mae)

Give your college market the option to pay without a credit card.

Between college students who don’t have credit cards and those who have them but don’t want to add to their debt, you could be losing revenue if you don’t offer alterative payment methods (APM), like Bill to Phone, also known as LEC billing.

ILD Teleservices’ Bill to Phone is one of the easiest APMs to offer your target market. It works by allowing college students who want to buy your ecommerce goods or services to simply charge the purchase to their phone bill.

Grow your business with Bill to Phone.

Our system is easy to integrate into your checkout process and it comes with a management portal that allows you to access the account information that will help you make profit-building decisions. Learn how ILD will lift your revenue with LEC billing.

Is the cardholder legitimate? Is the credit card valid? For years, these types of questions have dogged the digital merchants who rely on card-not-present transactions to do business. And while credit card sales aren’t likely to disappear in the near future, there are strategies merchants can implement to manage the risk of fraud. Here are four to consider:

1. Invest in the right third party payment processor. A payment partner should be more than the “system that handles the money.” The right processor will understand the risks of operating in the digital space as well as provide the tools and expertise to reduce fraud exposure. For example, ILD’s Bill to Phone, which charges transactions to the customer’s phone bill, offers a real-time verification system that validates the customer’s identity.
2. Develop risk management procedures. Implement the internal controls that lower your brand’s risk of losing revenue to cybercriminals and “friendly” fraud transactions. Review everything from the sales order process to real-time customer identity verification.
3. Educate staff. Those risk management procedures won’t be worth much if employees aren’t familiar with them. Teach staff about your company’s fraud prevention tools and strategies. New and established employees should also understand how to follow the risk management procedures you’ve implemented.
4. Review risk management plans on a regular basis. Fraud reduction and prevention is not the work of a single day or week. Criminals find new ways to steal from businesses. Payment processors develop new fraud prevention strategies. To maximize return on a risk management plan, regularly review the strategies and tactics.

ILD Teleservices is a trusted third party payment processor for a range of industries, from telecommunications and ISP to gaming and home security. Our Bill to Phone alternative payment method allows you to build predictable revenue streams while reducing your exposure to fraud. To learn more about our ecommerce payment solution and real-time customer identity verification, contact our team.

Whether you’re the director of a non-profit or a business professional serving on a board, you know how challenging it’s become to fund the mission. With the funding well drying up, organizations are more and more reliant on building strong support from the public. One strategy to make it easier for donors to give is to add an online giving alternative payment option, such as phone billing, which charges the donation to the supporter’s phone bill. Here’s how it works to boost online donations:

1. Convenience. Donors have big hearts and busy lives. A non-credit card payment method is a low-hassle option because there are no credit card numbers or security codes to enter, making it easier to give on the fly.
2. Safety. No matter how passionate a supporter might be about your cause, the threat of identity theft may make them think twice about sharing their credit card or bank account information over an Internet connection. Phone billing doesn’t require donors to share any sensitive info online, giving the supporter peace of mind.
3. Value. Charging a donation to a credit card increases the cost of the transaction to the giver; after all, they’ll likely pay interest and potentially other fees. Adding an alternative payment method eliminates those costs, which may just translate into a bigger donation for you.
4. Choice. Credit card payment options are fine and dandy—as long as the supporter has a credit card. In fact, nearly 30% of households in one 2010 study reported they didn’t have a credit card. Don’t turn away donors simply because they don’t have plastic. With phone billing, the giver needs a home or business phone number. That’s it. The option opens up whole new markets to help support your cause.

Whether your group mentors kids, funds scholarships, or provides job opportunities for veterans, adding an online giving alternative payment method, like phone billing, makes it as easy as possible for you to get the support you need.

ILD Teleservices is an experienced third-party payment processor with a phone billing platform that’s easy for you to integrate and easy for supporters to use. Learn more about how to increase online donations using our Bill to Phone service.

The thrill of digital shopping. You love that ecommerce allows you to purchase anything you want, from ringtones to dating services. You don’t love that merchants require you to share sensitive financial info, like credit card numbers, over an Internet connection. Identity fraud is a very real threat that costs each victim an average of $5,000 in stolen money plus up to $1,400 in costs to resolve the damage.

But you can significantly reduce exposure to cybercriminals with these online shopping tips:

1. Consider installing a firewall on your computer. Tech-savvy criminals can hack into a computer system even if it has anti-virus software. Consider installing a personal firewall, which blocks outside attempts to access your data.
2. Don’t freely share more information than is necessary. Most digital stores need your name, address, phone number, and perhaps email address to process an order. There is no reason for an ecommerce business to ask for your bank account information or full social security number. (Be aware that some online businesses may ask for the last 4 digits only of your SSN to verify your identity.) Give the digital store only the essential info it needs to deliver its goods or services—no more.
3. Don’t shop on a public computer. Sharing credit card information on a library or Internet café computer greatly increases the risk a cybercriminal can access your data. Remember, a cybercriminal can be someone in another country—but it might also be the guy in line behind you who is watching your screen.
4. Go credit-card free. There are newer and safer ways to pay for online transactions. An alternative payment processor, like ILD Teleservices, allows you to pay for digital goods and services without sharing credit card or bank account info. ILD’s Bill to Phone actually works by charging the transaction to your phone bill. It’s simple and it’s safe.

And that’s how online shopping should be: simple and safe. It should not expose you to the risk of identity theft. To learn more about how ILD Teleservices’ Bill to Phone payment service works to reduce consumers’ risk of identity theft, check out our website.

We encourage consumers to review their bills each month, from credit cards to utilities and phone bills. So, we are re-running a blog post from last year, where we provided some best practices we’ve picked up along the way.  Here it is:

In this economy, every penny counts—and that makes it especially frustrating to discover a charge you didn’t authorize on your phone bill. The good news is you can reduce the risk of becoming a cramming victim. Here’s a guide to help you prevent those unauthorized telephone charges.

Cramming hurts consumers.

Cramming occurs when your telephone bill is charged with services that weren’t ordered by you or anyone else in your household. Unauthorized charges range in monetary amounts, but can be as little as a few dollars. If they go undetected, they add up over time, putting a ding in your wallet. The charges can be for a variety of services, such as web hosting, club fees, or phone calls.

Protect yourself from cramming.

The Federal Trade Commission (FTC) recommends these steps for reducing your risk of cramming:

• Review each line of your phone bill every month.
• Read the fine print before providing your phone number and other information to enter contests and other promotions. Fraudsters may use your entry form as an authorization to enroll you into a service so they can bill the charges to your phone account.
• Be wary of signing up for a “free” club or service or of claiming a “free” prize; you may be inadvertently signing up for a fee service that’s charged to your telephone bill.
• Contact your phone company to ask about the blocking options they offer. A block will prevent a certain type of service on your phone line. For example, a third-party service block stops any third-party payment processors from billing your account.

ILD protects consumers from cramming.

ILD Teleservices is a third party payment processor. Merchants use our Bill to Phone service to allow consumers to charge purchases directly to their phone bill. As a result, consumers do not need to share sensitive financial information, like credit card numbers or bank account numbers, reducing your risk of identity and credit card fraud.

We are committed to protecting consumers from unauthorized charges. For example, ILD only works with merchants after the vendor successfully passes a screening process that includes extensive background checks and a business plan review. After we take on a merchant, we continue to monitor their activities and customer satisfaction levels.  If ILD receives excessive complaints about a merchant, we take immediate action to rectify the problem or, if necessary, terminate our business relationship with the company.

Call us if you have questions.

ILD’s U.S. based customer service team is available Monday through Friday from 7 a.m. to 8:30 p.m. (CST) and Saturday from 9 a.m. to 5:30 p.m. One of our associates will answer your questions or help find a resolution.

Friendly fraud. Despite its name, there’s nothing friendly about a reversed transaction that costs a digital merchant time and money.  Friendly fraud is when a consumer makes an ecommerce purchase, receives the goods or services then initiates a chargeback. But there are tactics that help ecommerce merchants reduce the rate of friendly fraud.

Learning how to reduce chargebacks from friendly fraud starts with asking yourself these 3 questions:

Will the customer recognize my company on their billing statements? When a consumer reviews a billing statement, whether it’s for a credit card or a phone bill, they may be suspicious of an unfamiliar or ambiguous name, even if they’ve already received the product or service. Always ensure the name that appears on the bill will be identifiable to the customer. If you partner with a third party payment processor, post an easy-to-see note on your website that notifies customers that the processor’s name (for example, “ILD Teleservices”) will appear on the billing statement.

1. Can the customer find my ecommerce store’s contact info easily? Customers who are already frustrated may not have the patience to hunt for the small-print 800 number buried at the bottom of the web page. Make contact info prominent so the customer will be more likely to contact you first, instead of the bank or card issuer. Remember to list your customer service hours as well.
2. Is my digital store’s return policy ecommerce friendly? A liberal return policy not only attracts prospects who may be wary of shopping online, it also makes customers more likely to return a product or cancel a service instead of initiating a chargeback.

Disputes are going to happen. But by implementing simple ecommerce best practices, such as identifying your third party payment processor or making returns easy, you will start reducing chargebacks from friendly fraud—and start controlling your costs.

Do you have tips for how to reduce chargebacks from friendly fraud?

Ecommerce isn’t a fix-it-and-forget-it endeavor. If you want to generate revenue, digital commerce needs to be a continuing process that analyzes and refines the tools you use to make transactions happen. A good place to start on any site is the shopping cart. Are you making one of these ecommerce shopping cart mistakes?

You play hide-and-seek with navigation buttons.

Basic navigation buttons should be simple to find, especially if you expect to make the shopping experience hassle free. If a consumer needs to hunt for a search box, for example, they may just become frustrated enough to click onto a competitor’s site. Shoppers should be able to easily find buttons, such as:  

• Buy
• Cancel
• Change quantities
• Shipping charges/estimates
• Search box
• On sale/bargain products
• Top sellers

The pages are a jumbled mess or a utilitarian wasteland.

Ecommerce pages need to blend appealing images with functionality. If the digital store’s page is cluttered with too many photos or images that are too large, they eat up real estate needed for some of those navigation buttons that make online shopping a breeze.

But you also can’t expect to appeal to consumers with a shopping cart that looks like a dot-matrix printout from 1990. You still need appealing, professional-level images to help sell a product, whether it’s a cat toy or a corporate report. Use the best-quality images possible rather than “no image available” icons.

You don’t build trust with ecommerce customers.

As consumers become increasingly aware of the potential risks of identity theft, it’s critical to instill trust. Share contact information, such as email address, phone number, or live chat info, clearly and prominently to alleviate consumers’ concerns.

Another way to build trust is to partner with a third-party payment processor that offers credit-card free payment options, like phone billing, so the shopper doesn’t need to share sensitive info to get the goods and services they need.

What other no-no’s have you seen in ecommerce shopping carts?