SafPay Inc. has released Virtucard, a
cash-based virtual mall card that gives online merchants a more secure
and cost-effective online payment alternative to credit cards. Unlike
credit card merchant accounts, Virtucard eliminates charge-backs and
guarantees all funds to the merchant while providing a safer and more
private shopping experience for the consumer. Consumers can shop
anonymously at Virtucard merchant stores, as if they were using cash,
and prevent personally identifiable information from being disclosed.
The benefits to the merchant are significant.
Consumers fund their free Virtucard account for up to $1,000.00 directly
through their bankâs online bill payment system as if they were paying a
bill. The bankâs trusted third-party processors handle the transactions,
which means neither SafPay nor the merchant have access to the
consumerâs checking account information. As a result, merchants are free
from the added risk of handling sensitive financial information and the
consumerâs financial assets are not at risk when they shop online using
That reduced risk translates into significant savings and benefits for
the merchant in the form of lower fees, daily deposits and the
elimination of charge-backs or the need for rolling cash reserves. In
addition, Virtucard merchants are not subject to the extensive and often
severe compliance measures, such as PCI, that face online credit card
merchants because consumer financial information is not at risk. The
lack of additional transaction fees also means that merchants can now
accept micro-payments that have been previously too cost-prohibitive to
accept with a credit card merchant account.
Online merchants will find it easier to get a Virtucard merchant account
than an online credit card merchant account as well. Businesses
considered “high-risk” by credit card processors are not classified as
such by SafPay Inc. which openly welcomes such businesses. “We just
don’t have the same fraud or risk potential that you have when you
accept credit cards online. I personally know of many merchants who
can’t get merchant accounts and are forced to go offshore because credit
card processors consider their business too risky. When you take a
physical payment product like a credit card and try to make it work
online, you run into all kinds of problems. That’s why we developed
Virtucard,” says SafPay Inc. CEO and founder George Ouzts.
Virtucard was released to select merchants in November 2008. When asked
how it was received, Ouzts said, “We specifically targeted merchants who
were considered ‘high-risk’ by credit card processors as early adopters.
They enthusiastically embraced Virtucard because it was a win-win for
them and their customers.” In fact, the companyâs internal survey
results support that claim showing very high satisfaction levels with
all aspects of the service.
Early adoption statistics show that Virtucard consumers spend more and
spend more often than with credit cards when shopping online–perhaps
because they feel more comfortable with the shopping experience.
Virtucard is available for U.S. merchants and customers. Developments
are under way to expand Virtucard internationally.
Those interested in learning more about Virtucard can visit SafPay’s web
site at www.safpay.com.
Virtucard is a registered trademark of SafPay Inc. All other company and
product names may be trademarks of the respective companies with which
they are associated.
About SafPay Inc.
SafPay Inc. has redesigned how people shop online through Virtucard, its
cash-based virtual mall card. With Virtucard, SafPay offers customers a
more private alternative to shopping online than traditional credit
cards and offers merchants a safer and more cost-effective way for
accepting payments online.