Bill Me Later, Alternative Payment Solution - Only In America
One of the ‘Alternate Payment Solutions’ widely used today is Bill Me Later. This online shopping tool is now enjoying faster growth and popularity with very large segment of the American population. This is by all measures a very successful product.
‘Check out’ using Bill Me Later is similar to applying for a small, instant line of credit. Of course, what else would American shoppers be using! Once the customer tops off his or her shopping cart and heads to the checkout, they need to provide their name, the last four digits of their Social Security number plus date of birth. Almost instantly, Bill Me Later does an credit review and decides whether it wants to loan the shopper that small amount of money.
If approved, the transaction is completed and the goods shipped. The customer is then billed for the purchase, hence the name Bill Me Later.
This entire process is fast, simple and convenient. These features are, of course, the main ingredients to any successful retail operation in today’s e-commerce world.
This is an ‘instant shopping’ line of credit for American consumers. After purchase, any happy user can then pay off his entire purchase when they receive the bill or pay over time and eat the annual interest charges (rumored to be 19.99%).
Many users state that this payment solution provides a simple, fast and easy way to shop without having to use a really high interest credit card. Plus, there is no interest charge during that first payment period, if you pay for your purchase right way. Pretty handy for US shoppers. I could not find any public numbers on how many people pay for their entire purchase without running into that long term interest charge.
Mark Lavelle, business development VP for I4 Commerce (which owns Bill Me Later), says that they have about 450 retailers accepting their solution which is almost double from just one year ago.
When Google introduced GoogleCheckout, Lavelle said it further validated the market and allowed retailers a new level of comfort.
“In late 2005, PayPal legitimized the market,” Lavelle said. “Then when Google went into the market, the whole (retail) world went hysterical.”
Retailers using Bill Me Later are charged a transaction fee but its lower than a credit card. While the big boys like Visa and MasterCard typically charge around $2 per transaction, Bill Me Later is only charging around $1.50 on a $100 purchase. That is a very nice savings for retailers.
What about fraud, you ask? Well…Bill Me Later provides “zero fraud liability” protection; the same protection you would get from most major credit cards. Safe and convenient…nice!
Lavelle further says that the credit card companies are loving his new service because it makes them look less like a ‘monopoly’ and that will help to keep the government wolves out of their regulatory affairs for a bit longer.
I’m always impressed with any online commerce solution that allows consumers to pay without using a credit card. This system is a very good one, but still not applicable for anyone outside the US.
One thing I liked about their web site is their “Super Savings” page.
Shop these stores and you get an additional discount when using Bill Me Later. Here you can find, Super Savings, from some pretty nice retailers like,
- No Payments for 90 Days on orders over $250 when you use Bill Me Later, Walmart
- No Payments for Up to 6 Months and the luxury of BusinessFirst, Continental Airlines
- No Payments for 90 Days on any purchase, Expires: 6/30/2007, Petco.com (my favorite store)
- No Payments for 90 Days on orders of $100 or more, Expires: 6/30/2007, Toys R Us
- No Payments for 90 Days, Expires: 4/30/2008, USAirways.com
Bill Me Later® is offered through CIT Bank, Salt Lake City, Utah and clearly this is a successful and growing alternative payment solution.
billmelater
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2 opinions for Bill Me Later, Alternative Payment Solution - Only In America
melissa Murphy
Apr 23, 2008 at 10:16 pm
I have had a Bill Me Later Account for almost three years and at first, I really enjoyed it and could purchase at any amount. I have always paid on time and haven’t been late on my account in three years. But now, I can only make purchases within a certain amount. My credit has been lowered because; I haven’t been able to use my account because of them declining, recommending me to choose another form of payment. I can’t even make a purchase from Hotwire to be able to fly somewhere for 250.00. You would think over that amount of time, would build more credit. In the begining; I could be able to make purchases in between 700.00- 900.00 at a time; no I can’t. I tried calling to talk with someone many times about this problem and it wasn’t resolved it was ignored. My Understanding with Bill Me Later if you pay on time, you get less credit! I don’t think, I am going to keep this account anymore; I will choose some other kind of form of payment! Good Luck to U!
Benson
Apr 23, 2008 at 11:11 pm
It seems weird that you actually don’t build more credit instead when you’re prompt.
Thanks for sharing Melissa!
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