New online Payment service launched.

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Jorumian

Facilitator
Sep 1, 2008
347
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Birkenhead
Paypoint has launched an online cash payment service utilising any of the 20,000 terminals located across the UK, that allows someone to buy online using cash and thus reduce the risk of fraud.

PayPoint launches online cash payment service - vnunet.com

While any reduction in the risk of fraud is good, I am not sure how this will catch on. Personally, the convenience of online shopping is that I don't have to go out to the shop in the first place. It seems rather pointless to me to order something online, and then have to find a terminal to pay for it, when the nearest terminal is likely to be in a shop somewhere, possibly close to where I could buy the item I bought online anyway, thus enabling me to have the item immediately and not pay for delivery.

I like the idea, I am just not sure how it will work in practicality.
 
G

GlasgowGirl

Facilitator
Jul 22, 2008
287
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Hmm, at first glance I agreed with you, but looking at the story, it seems they have two key motivations for setting up the services:

- to benefit retailers, not consumers, by allowing them to be paid in cash and therefore reduce the risk of fraud. If I remember rightly, if you are a supplier and you receive a payment from a credit card that is being used fraudulently, you don't get any compensation for this. Is this correct?

- for people who don't have credit cards. This may be an increasingly large market as it becomes more difficult to get credit in the future: potentially, this service could be popular with people with poor credit ratings or on low incomes, who are not attractive to credit card companies.
 
K

katealpha

New Member
Sep 1, 2008
142
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Beds
It will be interesting to see if this catches on but I use a credit card for online shopping because I think I'm better protected. Will these cash buyers become vulnerable targets for internet fraud?
 
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