al-Mart, known for expanding its brick and mortar presence throughout the world, has taken the next step toward dominating Internet shopping. Customers now have the option to pay for merchandise at the company's online site, Walmart.com, using checks.

In a partnership announced July 22, 2003, Certegy, Inc. will provide full check guarantee and electronic check processing services for Wal-Mart's Web-based customers. The new payment option went live earlier in July and lets customers use their checking accounts to make purchases over the Internet. Wal-Mart is one of the first mass retailers to offer this method of payment for online transactions; until now, customers were only able to use major credit cards and Wal-Mart's proprietary cards, all of which still will be accepted.

The system is based on Certegy's PayNet platform, which is designed specifically to manage card-not-present transactions. Retailers, including Wal-Mart, are able to accept check payments from customers online or over the telephone at competitive rates.

"Electronic checks have become an important part of an online retailer's strategy to close more sales-especially for consumers who prefer to pay by check," said Jeff Carbiener, Senior Vice President and group executive for Certegy Check Services. "By offering consumers the option to pay by check across all sales channels, retailers will increase sales, lower merchandise returns and encourage repeat business."

And recent studies support this. According to Forrester Research, Inc., Internet sales are expected to increase by 26% this year and will total $96 billion. The firm surveyed retailers who said that 46% of their online customers also purchase from them offline and that 17% of offline customers say they have made purchases on the Web. The retailers also said that the Internet influences 15% of their offline sales.

Electronic checks use an encryption process like card transactions and work for both purchases and returns; funds are immediately withdrawn from or deposited into the customer account, just like debit cards.