New charge free payment reception for merchants

Merchants may accept payments without paying credit and debit card fees with eLayaway. The system also offers the buyers to pay for the goods ordered gradually without subsequent submission of enormous credit card bill.

A number of users is said to be very pleased with the system. "In this economy having a payment option for credit-conscious consumers is a big deal," says Martin Berns, CEO of online loyalty program BSP Rewards. "From the comments we hear, they like the fact that they don't increase their credit card debt." The company's slogan "credit is overrated" attracts customers tired of credit card debts.

Credit and debit card fees are consigned to the consumers. The fee accounts for 1.9 percent of the purchase price. Installments for the purchased item may be paid within 13 months. The money is to be held in escrow by the HSBC USA Inc. The age of the consumers shouldn't be less than 18, and they need to have an active checking account. After the payment was fully made the retailer receives his money and ships the goods. In case of incomplete payment the customer is to be charged $25.

Since 2006 when eLayaway started 1,800 transactions were made by the customers and 97 percent of purchases completed.

eLayaway is offered generally by small merchants the number of which correspond just to 700. However there my be more of them in view of the fact that online payment provider CardinalCommerce is integrating eLayaway into its Centinel payment platform, along with such other alternatives to credit cards as PayPal, Bill Me Later and eBillMe. This will increase the number of merchants offering eLayaway. According to CardinalCommerce officials that integration is expected to finish by the end of May.