It was a surprise to us to see the amount of responses we have received after our recent publication of our latest article explaining the E-check payment method couple of days ago and now it seems to be the perfect time for an update. Most of our readers were interested to know our stand regarding which payment method they should use. Being an informational guide dedicated to smokers instead of suggesting the best method we will try to explore all the advantages and disadvantages of each payment method and let our readers to decide which one is more appropriated for their needs.
Let’s first see a bit background regarding the battle of the two payment methods.
Nowadays we are seeing more and more retailers that are offering e-check (Electronic checks) as a payment option to their customers. The main reason for that is because in that way they can avoid the charges – which sometimes are significantly high – they have to pay to the credit card companies. Another reason that applies mostly in the tobacco industry that we are anyway mainly concerned is the Credit Card Companies Restrictions over the online Cigarette sales. As we said in our previously posted article Credit card companies came into an agreement for not allowing their services for any sales of cigarettes or any other Tobacco products over the internet in an attempt of the United States government to collect taxes from online tobacco companies. Recent Studies shown that cigarette retailers that were accepting credit cards and PayPal have drastically dropped from 99.2% of the total cigarette retailers to an impressive 37.4 percent after the restriction measures took place.
Having said that, we will try to explore, all the possible advantages and disadvantages for each payment method from the buyer’s perspective.
There are few advantages for the smoker that is about to order duty-free cigarettes online with E-check.
1. Compared to credit card transactions, electronic checks can provide dramatic savings in processing fees for the online tobacco store. Lower processing costs for the shop usually lead to lower selling prices (although this is not a rule).
2. It is a common secret that credit card purchases over the internet is a high risk form of payment as a credit card can be compromised very easily. From the other site of things E-Checks are the most secure payments instrument or transaction.
3. Credit card availability in an online tobacco store means avoiding of the regulations we mention before making the transaction between the buyer and the store illegal and there is the danger at any point the store to be shut down and you most probably instead of getting your cheap cigarettes will end up losing your money or even worse have your personal details given to the authorities by the processing company.
There are two downsides when someone tries to buy tax-free cigarettes online with E-check instead of Visa.
1. With e-check you pay for your cigarettes right away. With Credit card you can order your cigarettes at the start of your credit card billing cycle and actually pay for your purchase up to 60 days after. So it can be consider as a free short-term loan.
2. Ordering cheap cigarettes and pay with E-check means that you are not getting any rewards usually the credit card providers offer i.e. credit card points, miles etc.