Webcertificates, the only "same as cash" gift certificate on the Web, and Ecount, the first personal Web account that allows consumers to send, spend, and receive cash online are both online alternative payment mechanisms offered by leading e-commerce incubator C/Base.
How Webcertificates and Ecount Work
Webcertificates are similar to paper gift certificate, except that it''s digital. Recipients are e-mailed a personal account number for a specific dollar amount that can be used for payment anywhere online. As a merchant, you don''t have to take any extra steps to accept Webcertificates. If your merchant account can accept Visa and MasterCard, it can accept Webcertificates. If you''re a merchant, you might have already accepted a Webcertificate without even being aware of it.
To a merchant''s payment system, Webcertificates look like a MasterCard number. They even have expiration dates. The certificates are funded with either gift giver''s money or with a merchant''s money as part of an incentive program. Webcertificates utilize the same platform as the company''s other product, ecount.
Ecount can be used directly for consumer-to-consumer transactions, such as auctions, and have no expiration dates associated with them. As such, ecount is the only C2C payment method that can be spent instantly with a merchant. If a consumer receives an ecount in payment for an auction, then he can turn around and spend it just as he does with a Webcertificate. Alternatively, once some upcoming product enhancements are introduced, he will be able to complete the necessary paperwork (online) to have it directly deposited into his bank account or to receive a check by mail.
Ecount (the company, which is a spin-off of C/Base) uses an internal system for C2C transactions, and the MasterCard network for B2C transactions.
Customers can pre-load their ecounts if they prefer to use ecount instead of credit cards for purchases. If a customer finds himself in the middle of a purchase and with his ecount not adequately funded, he will be routed to a secure frameset off the merchant''s page to load his ecount using his credit card number. Currently, ecounts can not be automatically loaded from stored credit card numbers, which is safer for the customer, but slightly less convenient.
In addition to enabling person-to-person transactions, ecount is an excellent solution for customers who either don''t have or don''t want to use credit cards to make purchases on the Web. They''re secure in that only the amount in the account can be fraudulently used - and even then, they''re covered by the same consumer protection that MasterCard customers receive. For C2C transactions, consumers don''t have the same level of protection. If a customer''s account is used in an unauthorized way, ecount.com will reverse the transaction, but if the goods promised are never delivered, the customer is out the money - just as when paying by a check.
Merchants will find that ecount and Webcertificates don''t solve the chargeback issue for them. Customers can initiate chargebacks against merchants after paying via their ecount.
Fees, Costs, Etc.
Merchants don''t have to take any special action to accept Webcertificates or ecount. They pay their regular MasterCard fees to their merchant bank on these transactions just as on MasterCard transactions.
Customers can send Webcertificates without paying any premium above the amount of the gift. Users of Webcertificates or ecount can use the money in their account just like a MasterCard at any Web merchants that accept MasterCard.
Overall
Ecount is a very good system for C2C transactions, and a good way for customers who don''t want to use a credit card, or don''t have one to use, to make purchases online, while benefiting from the same consumer protection as using a MasterCard.
Pros: Easy to use for both customers and merchants. No additional software required. The network of merchants who accept ecount is enormous, making it even more attractive to customers for both B2C and C2C transactions. International payments in other currencies will be handled exactly as they are with MasterCard in real time, so no additional burden for the merchant to process a specific currency.
Cons: Doesn''t solve the chargeback issue for merchants.
Alexis D. Gutzman is an E-commerce Technology Author and Consultant and author of The HTML 4 Bible, FrontPage 2000 Answers!, and ColdFusion 4 for Dummies. She can be reached at agutzman@internet.com
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