Is Phone Bill Payment A Valid Option?

Due to the staggering number of credit card fraud and identity theft cases in the United States, security has become the primary concern for consumers, while reliable and safe payment options become increasingly important for merchants. Most consumers now think twice before paying with a credit card over the Internet, and argue that many merchants are not doing enough to protect customer information. This new consumer market is setting the stage for a change in payment methods, creating a demand for alternative payment options.

Did you know:

• More than 50 percent of all online consumers prefer an alternative method to credit card payment, yet the primary method of payment for more than 90% of online transactions is the credit card.
• The biggest challenge in the e-commerce environment is the large market of consumers with limited or no access to credit cards.
• Not all consumers have credit cards, many do not have bank accounts and yet even more do not have available credit on their credit cards.
• Nearly 23% of US households do not have a credit card. Approximately 10 million of those US households are online.
• Of the total cardholders in the US, approximately 45% are within 5% of their credit limit.

What does all of this mean? This means that there is a clear need for secure and reliable alternative payment methods. It also means that there is a market of ~10 million households who, should they wish to make an online purchase, have no other option than to disclose their personal banking information, either through PayPal or via Automated Clearinghouse, if these options are available with the specific digital merchant.

Providing consumers with a choice in payment methods greatly increases a businesses marketing opportunity. However, any successful business will vouch that to grow revenue, it must be simple and safe for the consumer to buy the service. In addition to credit card and e-check acceptance is phone bill payment; a payment option which is gaining traction among online consumers and digital merchants.

Who is ILD Teleservices?

A question I've seen online lately is "who is ILD Teleservices?" So, we've created this blog which will be updated on a regular basis to talk about who we are and what we do, discuss what we see from a market perspective, and address the world of online payments.

Visitors can also find ILD Teleservices at http://www.ildteleservices.com/.


So, to address the question at hand, ILD is a registered billing clearinghouse reaching more than 1,300 local exchange telecommunications carriers, enabling communications companies and digital content providers an alternative payment to traditional credit cards. As an example, similar to the way Visa® and MasterCard® process credit card payments on behalf of merchant customers, ILD is a billing clearinghouse that processes phone billed transactions on behalf of merchant customers.