NEW YORK – Although fraud protection and security are the most important factors for online shoppers, the majority of online shoppers who use credit cards for their transactions don`t know their liability coverage.
A survey of 2,706 consumers conducted by JupiterResearch and commissioned by eBillme found that 68 per cent of online shoppers who pay for online transactions with a credit card do not know their liability coverage. According to the report, there is a high level of confusion as to the definition of “maximum liability coverage” might be.
“While e-commerce continues to rapidly grow, there are still 74 million online consumers who do not buy online,” said Marwan Forzley, president and CEO of eBillme, in a statement. “This data shows us that consumers want to know how they are being protected from risks of fraud or other factors that can affect their purchases. An alternative payment option like eBillme, which has built-in buyer protection features, including return guarantee, price guarantee, in-transit protection and fraud protection, made known to shoppers, would enable retailers to increase consumer confidence, leading to higher average orders and more repeat sales.”
The survey asked consumers about their considerations when selecting an online payment method and examined potential opportunities for online merchants to convert hesitant shoppers into confident buyers. JupiterResearch found that 81 per cent of credit and debit card users value fraud protection as the most important factor when selecting a payment option.
Of the consumers surveyed, 60 per cent of credit users and 56 per cent of debit card users prefer product and service guarantees. Forty-five per cent of credit card users and 50 per cent of debit card users value price protection and being offered the lowest available price.
Additionally, 68 per cent of credit card users don’t know what percentage of their purchases they would be liable for if their cards were lost or stolen. Seventy-seven per cent of credit card users stated they would accept changes in the online checkout payment process if it would enhance security. The survey also discovered that 65 per cent of debit card users are also unaware of the liability connected with using a debit card.
According to eBillme, fraudulent debit card purchases can cost the consumer up to $500 or more if the activity is not repoted within a certain time period.
“eBillme brings the proven and trusted security of online banking to the e-commerce checkout and couples that with protection and offering consumers peace of mind,” Forzley said. “The study shows that by offering an alternative cash-based payment option, such as eBillme, online merchants have a significant opportunity to tap into a consumer segment that values security, privacy, control, and enhanced buyer protection when shopping online.”
This column was written by Chris Talbot of ConnectIT
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