The online musical instruments marketplace offers up to one year of financing to buyers through an online payment service from Affirm.
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In addition, AmeriNet Inc., a provider of e-check services, has introduced a new cash payment service for online purchases. When a customer wants to pay by cash at a participating online merchant, AmeriNet produces a record locator number that the shopper takes to a Western Union office. Once the shopper makes a payment to Western Union, the money transfer company alerts AmeriNet, which sends the order to the merchant’s fulfillment center. The cost, about $4 for low-value transactions and up to $20 for transactions valued at about $1,000, can either be paid by the merchant or passed onto the consumer, AmeriNet president David Kerlin says.
But even in a time when e-retailers are looking to offer as many financing options and related incentives as possible, credit cards will continue to play a strong role in serving customers and driving traffic to retail web sites, says Macys.com’s Anderson. Among the strategies the Macy’s web site will launch in the near future, he says, are personalization and loyalty programs based on activity on the Macy’s private label card. “The proprietary card customer, whom we know better than other customers, will get offers others don’t, such as rebates based on minimum purchase requirements,” he says. “Our primary focus will be on rewards, giving customers certificates to allow them to defer the cost of their next purchase on Macys.com.”
Why some consumers won’t use credit cards online
Concerned about security 70%
Don’t like having to enter information 9%
Don’t have a credit card 7%
Don’t like interest charges 6%
Purchase value too small†to place on card 4%
Exceeded personal credit limit 4%
Source: PaymentOne, April 2003