As many Americans tighten their belts on their personal budgets, they are choosing to not use credit cards to make purchases on Web sites. In fact, over the recent holiday season, credit card usage was only at 28 percent – the lowest it’s been since 2002. With so many consumers not reaching for credit cards, e-commerce Web sites need to find payment alternatives that let consumers use their personal checking accounts to pay for goods and services.
“People still want to make purchases,” said Maxwell Morgan, CEO of Aramor Payments, “but they don’t want to use their credit cards. As a result, we are partnering with merchants to offer online check payment options through ACH processing and Check 21 – products that deduct money directly from a consumer’s bank account.”
“With more than eight million Americans not using their credit cards, our products provide a safe and cost-effective solution to online merchants who want to offer another payment option,” said Morgan. By accepting online check payments through ACH or Check 21, merchants can reach a wider customer base, which may help increase sales while decreasing their risk for fraud or nonpayment.
“Online check payments are no longer a trend,” Morgan continues. “It’s a permanent fixture to help connect e-commerce sites to a larger portion of their customers.”
Indicative of much of the activity we’ve been seeing concerning lower-cost payments for ecommerce merchants, Toronto-based Aramor Payments is making an ecommerce play that hinges upon their ability to debit and credit the checking accounts of their merchants’ customers. Though some of the statistics in the announcement are a bit muddy, they do speak to online merchants’ desire for lower-cost payment processing options. The question is, however, will consumers adopt payment capabilities that access their cash accounts when credit cards often provide them with the necessary comfort level to engage in remote purchases?