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Searching Google, a phrase ¡°Credit cards are nearly universal¡± caught my attention. Yep, fully agree with the fact that the Internet would never be the same if it wasn¡¯t for credit cards. Internet payment sprang a wider use of credit cards, which in turn helped finance the development of e-businesses, including shopping portals like Ebay, pushing e-commerce to a whole new level.
For every single benefit on-site credit card payment processing brings along, Internet security experts will happily name threats that dramatically reduce or eliminate such benefits, scaring the heck out of website owners. For websites with paid memberships and paid services, when credit cards are being used more than once or on a regular basis, security threats become even more acute. Is there an alternative that will eliminate many, if not all, the risks?
A credit-based website payment system sounds like a reasonable alternative. One is not paying for all services with a card, but instead purchases a number of credits to be used as payments for services and only pays for credits on a payment gateway¡¯s website.
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Credit point systems gain popularity due to their simplicity and several obvious advantages:
¨¹ Marketing advantages, and
¨¹ Extra income.
Let¡¯s get more in-depth with the above:
Payments for credits are processed not on your website, but on secure servers like Paypal, 2CO, Bell & Ross Watches Moneybookers, etc. Your website does not store credit card information, and, therefore, will be a less likely target for hackers interested in getting into your credit card db.
Credit system provides website customers with a more comfortable and human-friendly way to make periodic online payments. Basically, all payments are taken care of automatically (sometimes even replenishing the credit balance) and can be monitored via system-generated reports emailed to you.
Credits prove to be an indispensible marketing tool. A large number of Internet portals such as Sitepoint.com, for example, sell (and give away too) advertising credits. Advertising credits are very popular among script and software directories. Software publishers purchase listing upgrades, better placements, banner ads with credits to get additional exposure and better visibility.
Marketing-wise, let us look at some of the advantages of a credit system over a conventional CC payment mechanism:
¨¹ Attract users to buy more credits by providing a smaller per credit price for larger credit packages.
Example: Save 20% if you purchase 120 pay-as-you-go credits or more
¨¹ Invite new people with bonuses! Give them free credits or set initial credit balances for new accounts.
Example: 10 FREE Credits automatically added to you new account! Offer only valid for new members only.
¨¹ Encourage users to acquire more credits via sales or promos .
Example 1: Get 10% off your next purchase of 120 credits
Example 2: Buy $100 of credits and get +25% extra
Going an extra mile for your website users will always pay off because they will vote for your website with their wallets! Don¡¯t be too greedy and just remember that bonus credits don¡¯t really cost you anything, but you win so much in terms of positive rapport and new cust
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