Certegy’s web-based e-check volume soars
Boosted by customer wins with Dell Computer Corp. and Gateway Inc., electronic check volume for Internet and phone payments at Certegy Check Services has blossomed from about $50 million a month eight months ago to $100 million in December, Certegy tells Internet Retailer. The company expects that rate to be the new base for this year.
Certegy landed Dell in the second quarter and Gateway in the fourth quarter as customers of its PayNet service, which allows consumers to pay via an electronic check. Customers who wish to pay by check rather than credit card can provide checking account information to sales reps. Certegy authorizes the information, then converts it into an electronic check.
While credit card payment represents virtually all Internet retail transactions, some customers do not want to pay by credit card. However, some retailers have reported that as many as 60% of customers who place an order by phone never follow up with the check. As a result, retailers have looked for a way to close those sales while the customer is on the phone. Certegy customer Sears Parts Direct says its mail-order volume has decreased by 47% since it began accepting PayNet check payments, while check sales have increased 24%.
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