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Consumers can defer payments using credit terms payment services, and it has been shown that customers using this option have higher average order amounts.


Consumers can defer payments using credit terms payment services, and it has been shown that customers using this option have higher average order amounts.

In general credit terms payment services are popular, safe and trusted as an alternative payment provider in the online marketplace. These credit terms payment services have become valuable resources for customers that lack access to credit cards or are wary of providing sensitive information. Merchants have benefited in lower transaction costs with a guarantee against fraudulent charge backs. This payment alternative has been shown suitable for a range of large to small businesses. Each of these credit term service providers serve merchants and customers in different ways and its important to know these differences and evaluate your choices accordingly.

Pros and Cons of Credit Terms Payment Alternatives Include:

Real-time credit decision (helps target creditworthy customers)

Real-time payment

Guarantee against fraudulent charge backs

Convert more sales

Customers using this payment method tend to have high average order amounts


Alternative Solutions - Payment aggregators and credit cards are the most popular form of alternative payment solutions to credit terms payment service providers.

Estimated Costs - Costs will vary based on the vendor you select. Many of these credit terms payment services provide a guarantee on fraudulent charge backs that can save online merchants an enormous amount of money. The customer may also incur finance charges (similar to interest charges) if they don't pay off their bill within a timely period.

Vendors - Bill Me Later, Cred-Ex



Covers typical credit terms process flow defining each of the "payment players"; reviews payment concepts such as credit risk, underwritting, bad debt, collections and 3rd party providers.


The Fundamentals of eCommerce Payment Options online training course provides an introduction to the world of eCommerce payments. The course provides an overview of the main eCommerce payment options that exist today, why businesses use alternative payments, how eCommerce payment options are grouped, as well as providing examples, mind share, market share, and the major players.


If you are in the market for new alternate payment options you should consider purchasing our Guide to Alternate Payment Options. The Guide goes beyond a general market assessment to provide information businesses need to assess solution options and service providers.

Credit Terms Payment Alternatives are services that extend credit to individuals to make purchases online. These services are valuable to both merchants and customers. These services allow customers to purchase items online without giving their credit card information, which can attract identity-theft wary customers and credit-dry customers. Merchants can also benefit from these credit term providers because of increased sales conversions and a guarantee on fraudulent charge backs.

Key considerations when implementing or buying this functionality include:

  • Merchants have found that after implementing a credit terms provider the average order value has increased and they have attracted new customers.

  • The bulk of these providers have been targeting high-income, credit-worthy customers who are shy about about entering credit card numbers online, a surprisingly large group. The future of credit terms payment providers is uncertain and it will be interesting to see which providers have managed their credit risk wisely.

  • Is the credit terms service provider susceptible to credit market fluctuations?

  • How are credit terms service providers utilized and recognized by customers in the market?

  • What is the payment trend in the vertical in which you are operating?

  • How much money can the merchant save through the credit terms service provider?


Typically credit term payment service providers utilize a small amount of information to decide if you're credit worthy. For example, Bill Me Later requires users to input the last four digits of their social security number, their name and their address. Bill Me Later then sends that information to the credit bureaus and within 3 seconds the consumer finds out if they are able to make the purchase using Bill Me Later. If the purchase is successful then the online retailer is paid in real time and the Bill Me Later account is created. Merchants can enjoy the real-time payment and guarantee on fraudulent purchases while the consumer doesn't have to disclose too much personal information.

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