Online shoppers concered about credit info

November 15, 2005

A majority of consumers in a recent survey reported they are worried about credit security while shopping online during the holiday season.

According to a survey released by payment solutions company I4 Commerce on Tuesday, 72 percent of respondents were concerned about providing online retailers with their credit-card information in light of recent news about identity theft.

Other highlights of the holiday shopping survey include:

-- Sixty-four percent of consumers responding to the survey -- mainly affluent, frequent online shoppers who have made purchases from a number of online retailers -- indicated that they would be more likely to make a purchase if they did not have to give their credit-card number to a retailer.

-- When asked about their payment preferences, consumers said that they preferred being billed later for their purchases almost twice as much as using other payment methods, such as eChecks, credit cards, PayPal and checking accounts, combined.

-- More than 58 percent of shoppers plan to do a combination of shopping online and at retail stores this holiday season. More than 30 percent plan to shop entirely online, which represents more than 60 million Americans making all their holiday purchases online this year.

"Consumers are increasingly concerned about the safety of presenting their financial information online and would like payment choices. It is up to the retailers to address these concerns and look at new alternatives for making shopping safer, faster and easier," said Vince Talbert, vice president of marketing for I4 Commerce. "Retailers that take this into account and offer their customers new payment options can strengthen their relationship with existing customers while attracting valuable new online shoppers."

Copyright 2005 by United Press International