SafPay Inc. has announced the launch of its new cash-based virtual mall card, Virtucard. According to the developers this new card is a secure and cost-effective online payment alternative to credit cards. They say that it will be easier for online merchants to get a Virtucard merchant account than an online credit card merchant account.
Virtucard claims to give significant benefits to merchants. Thus merchants are free from the added risk of handling sensitive financial information and the consumer’s financial assets as the bank’s trusted third-party processors handle the transactions, which means neither SafPay nor the merchant have access to the consumer’s checking account information. Unlike the credit card processors, SafPay Inc. openly welcomes "high-risk" businesses. Reduced risk converts 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. Now merchants can accept micro-payments that previously were too expensive to accept with a credit card merchant account.
Virtucard, providing a safer and more private shopping experience for the consumer, excludes charge-backs and guarantees all funds to the merchant. Moreover, at Virtucard merchant stores, customers are able to purchase anonymously and to prevent personally identifiable information from being disclosed.
Early statistics reveals that Virtucard consumers spend more and spend more often than with credit cards when shopping online, supposedly 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.