February 2007 - Vol.5, Issue 2

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Online retail spending reached $102.1 billion in 2006, marking a 24% increase from 2005 (comScore Networks).

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News PCI Compliance Letter AuthBridge Press Release Events Prepaid Card Expo February 26 - 28 Merchant Risk Council Conference March 12 - 15 Paymentpalooza - Where People and Payments Perform March 20 at 2:15 PM EST ETA April 17 - 19 Email to schedule a meeting with us at any of these events.

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Since the inception of eCommerce, credit cards have been the standard method of payment. This is true not because they are most trusted by consumers, and certainly not because they are the least expensive form of payment for merchants to accept, but because they are in many cases the only payment option available on many sites.

But, as online sales grow at a rate of 20% year over year, shoppers are voicing their security concerns related to using credit cards online. Due to these concerns and the void in the industry, alternative forms of payment are springing into the market. These brands boast to be secure, convenient and cost effective, ultimately advantageous to both the consumer and the merchant. Although difficult to oust credit cards as the most-used form of payment online, Bill Me Later is undoubtedly on the rise.

In 2006, 16% of merchants were accepting Bill Me Later as a form of payment on their sites, an 8% increase from 2005. Of that, 34% have annual revenues exceeding $25 Million. Through merchant marketing and meaningful customer incentives, Bill Me Later is taking over online checkouts one big-name merchant at a time. Merchants like Toshiba, Stacks and Stacks and NetShops are taking advantage of this payment option dubbed "the credit card killer" ⁽¹⁾.

Here's how it works:

• Shopper clicks on Bill Me Later and enters basic information (last four digits of SS# and Date of Birth).
• If approved, the shopper is extended a line of credit to make the purchase.
• A bill is sent to the customer allowing them to pay right away or over time, with either their checking account online or with a check via mail.

For merchants, accepting Bill Me Later is about 30- 40% less expensive than credit cards ⁽²⁾ and leads to increased average order values (typically 25%) and repeat customers (46% higher repeat usage in the first three months).

With a proven track record and experience with the best-known merchants online, Bill Me Later is quickly making a significant name for itself in eCommerce. Through a simple integration of Cardinal's universal merchant platform, merchants can take advantage of the benefits the payment brand offers.

To learn more about Bill Me Later and Cardinal Centinel^TM call CardinalCommerce Merchant Services at 877-352-8444 or email Salesupport@CardinalCommerce.com.

(1) Erika Brown, Forbes.com 11/27/06
(2) Vince Talbert, VP Marketing, i4 Commerce (as quoted in Internet Retailer, November 2006)

How many good customers does your business inadvertently turn away in a typical week? What criteria must an order meet in order to be accepted? Data from the 8th Annual CyberSource Fraud Report notes that the overall order rejection rate in 2006 was 4.1%, up from 3.9% in 2005. If only 20% of these orders turned out to be valid, then as much as $1.6 billion may have been lost.

CardinalCommerce has found that many businesses are inadvertently turning away good customers, mostly due to ambitious fraud screening and far too critical order review processes. Fraud screening is a necessary part of doing business online but there is a fine line between valuable and risky screening.

We've taken a look fraud screening practices in depth and in the next few months will share our findings with you via our newsletter series titled "The Adverse Effects of Fraud Screening: Are You Forfeiting Customers?".

• Part I: Initial Screening
• Part II: Decision Making Systems and Tools
• Part III: Suspended Orders/Manual Review
• Part IV: Chargebacks/Retuns
• Conclusion/Summary

We hope that this series is informative, interesting, and valuable to your business. Look forward to Part I - Initial Screening - Are you (dare I say) avoiding customers?

To learn more about Cardinal and the payment brands we enable, please call CardinalCommerce Merchant Services at 877-352-8444 or email Salesupport@CardinalCommerce.com.

NetShops Increases Average Order Values with Bill Me Later

NetShops owns and operates over 100 online specialty stores, each focused on selling products within a specific niche market. In an effort to meet current customers' security concerns and reach out to new security-conscious consumers, NetShops was evaluating new payment methods beyond plastic. After researching multiple brands, they decided to take advantage of i4Commerce's Bill Me Later product.

Since their deployment of the product via Cardinal Centinel^TM - The Universal Merchant Platform - NetShops has witnessed an increase in average ticket values and significant eCommerce growth. Jay Gordman of NetShops comments, "We have seen improved average order values, which has led to higher sales. Additionally, our customers enjoy having the option of utilizing Bill Me Later."

With Bill Me Later, NetShops benefits from i4's strategic marketing model. They are able to take advantage of the growing Bill Me Later customer network and NetShops is listed in Bill Me Later's Merchant Directory, making shopping simpler for users. In addition, Bill Me Later accountholders receive tactical marketing campaigns, which feature merchants offering Bill Me Later as a payment brand.

With a swift deployment of Cardinal Centinel^TM, NetShops was easily able to access Bill Me Later. Gordman attests saying, "We have had an exceptional experience with CardinalCommerce. They made the implementation of Bill Me Later very smooth." Through this single integration, NetShops is also able to access future payment brands for the site, including 3-D Secure, PayPal, SECURE-eBill and others.

To shop safely and securely, visit www.NetShops.com today!

To learn more about Cardinal Centinel and the payment brands it enables, call CardinalCommerce Merchant Services today: 877-352-8444 or email Salesupport@CardinalCommerce.com.