|
Alternate Payment?
You
may be confused by some of the new payment instruments out there. We have
credit, check, cash—those are pretty straightforward. Then there is
debit, ACH, and EBT which can, and has, confused some people. Now we have
these new cards called Blue
and ClickCredit.
What are they? Smart cards? E-wallets? Monopoly money?
Well,
they’re credit cards. Yep, you read that right—good old fashioned
credit cards, with fancy new names and packaging.
As
we’ve reported in many GS issues,
many of the new ways to pay on the Web, such as digital wallets, e-cash, e-wallets,
etc., have just never taken off. So, since consumers seem to be using
credit cards and checks to purchase on the net, AMEX and Citibank have
decided to follow the consumer’s lead with the Blue and
ClickCredit cards.
Both
cards offer the same benefits as their respective companies’ traditional
cards, but also offer added features to entice and encourage Web shopping.
Since consumers still seem to be wary of online shopping and still express
concerns over privacy and security, AMEX and Citibank hope their new cards
can ease consumer concerns and increase online shopping.
Even
though American Express and Citibank have each developed “special”
credit cards for the Web, you are probably thinking a consumer could just
as easily use their standard credit card. You’re right, but,
that wouldn’t be as slick or sexy.
ClickCredit
is a credit card that is only good on the Web. Any Citibank cardholder can
get a ClickCredit card free by accessing www.clickcredit.com, or
www.citibankcards.com. Customers will be issued ClickCredit cards which
will include their account number but the cards are for reference only and
are not used when actually making a purchase.
ClickCredit
is a separate line of credit that can be used only for online purchases.
It includes special rewards such as cash back on purchases, double airline
mileage, a guarantee that the consumer will not be responsible for
unauthorized charges, a 100% money-back guarantee on most online purchases
that don’t meet the customer’s satisfaction requirements, and price
protection, which means that if a customer sees an item purchased
advertised online for less within 60 days, Citibank will refund the
difference.
Blue
is a bit different from ClickCredit in that it has a smart chip embedded
in the card. The chip is not a stored value card but rather another layer
of security for transactions, be they online or at a brick and mortar
location.
Like
ClickCredit, Blue also includes new cardholder benefits such as an online
shopping guarantee that protect consumers from online fraud, a smart chip
and reader, return protection which allows a to consumer return an item
when the merchant won’t take it back, the best value guarantee which
assures the consumer will pay the lowest available price, and a buyer’s
assurance plan that extends the terms of the original manufacturer’s
warranty on a covered product purchased up to one additional year.
I
know what you’re thinking—why would I want either of these cards when
a traditional credit card will work just as well?
Well,
AMEX and Citibank don’t really care if they get new cardholders from
these cards—that’s not really what they’re after. Instead, they want
to know who is buying on the Web and with what. If they can get their
cards in the hands of Web consumers, they can access that data. They will
be available to heavy Internet users to see how well they behave. Anthony Jenkins, Director of Internet Initiatives for Citibank North America Cards said, “With the explosive growth of the Internet, it was only natural for Citibank Cards to study the way consumers were reacting to it as a shopping channel. We found there were barriers that kept some customers from entering this new world of shopping, so today we are virtually eliminating those barriers by offering assurances that our customers will have a safe and rewarding Internet shopping experience. The Internet is changing the way people buy, and we believe that ClickCredit will now change the way they pay.”
|
