Online fraud and the fear of identity theft have had an impact on the average consumer as it has increased apprehension of making purchases online. The challenge in the industry however, is that many of these consumers are simply ill-informed or misinformed.

According to a JupiterResearch survey, 68 percent of online shoppers who pay with a credit card do not know their liability coverage. Commissioned by eBillme, the survey also found that there is a high level of confusion as to the definition of maximum liability coverage, among those who think they know what their level of coverage might be.

"While eCommerce continues to rapidly grow, there are still 74 million online consumers who do not buy online," says Marwan Forzley, President and CEO of eBillme, in a Wednesday statement. "This data shows us that consumers want to know how they are being protected from risks of fraud or other factors that can affect their purchases.”

 

“An alternative payment option like eBillme, which has built in buyer protection features including return guarantee, price guarantee, in-transit protection, and fraud protection, made known to shoppers, would enable retailers to increase consumer confidence leading to higher average orders and more repeat sales," Forzley added.

This survey evaluated consumers’ considerations when selecting a payment method online and examined potential opportunities for online merchants to convert apprehensive shoppers into confident buyers.

The result of this investigation revealed interesting insights into online shopping behavior, indicating that buyer protection is far more important than purchase rewards, which is one of the least important factors for consumers choosing an online payment option.

The survey also found that 81 percent of credit and debit card users value fraud protection as the most important factor when selecting a payment option; 60 percent of credit card users and 56 percent of debit card users prefer product and service guarantees; and 45 percent of credit card users and 50 percent of debit card users value price protection.

In addition, 68 percent of credit card users don’t know what percentage of purchases they would be liable for if their card were lost or stolen. Another 77 percent of credit card users would accept changes in the online payment process if it would enhance security.

eBillme is positioned as the safest way for consumers to pay online using available funds in an online bank account without releasing any financial information at checkout. Features include return guarantee and price, in-transit and fraud protection.

"eBillme brings the proven and trusted security of online banking to the eCommerce checkout and couples that with protection and offering consumers peace of mind," said Forzley.

 

"The study shows that by offering an alternative cash-based payment option, such as eBillme, online merchants have a significant opportunity to tap into a consumer segment that values security, privacy, control, and enhanced buyer protection when shopping online."

One of the best services that could be provided to consumers is a clear education that informs them of online risks, available protection and complete liability. Without this information, consumers will continue to put themselves at risk. Unfortunately, consumers must take the initiative to learn this information, yet many do not.

Perhaps many of the credit card issues that consumers experience today would be avoided if the consumer was diligent in knowing his or her rights and obligations. Until more individuals make this move, services like eBillme will find a large and welcoming niche.

 

 

 

 Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Level the Playing Field With Business VoIP, brought to you by Speakeasy (News - Alert)