But there are drawbacks. Some of your personal information might be shared with the companies' partners, so you might get unwanted e-mail unless you can opt out. And although the payment services use secure servers that encrypt your information as it is being transmitted, there's no guarantee that some hacker won't figure out how to raid their data vaults.
If you'd like to try paying this way, pick one service to start. To help you choose, we've listed the details of the four you're most likely to see when checking out.
PayPal
How your payment is processed
After you set up an account, you can send and receive money online. You can make payments from a PayPal account balance, with a credit card, or from a bank account. When you buy something, merchants are notified via e-mail by PayPal that they have received a payment from you. PayPal also gives you the option of having money immediately transferred from your bank account to the seller.
Benefits
This service is useful if you're buying on eBay, which owns PayPal. Some of eBay's smaller merchants don't accept credit cards, and you might not want to share financial information with unfamiliar sellers. PayPal is accepted by more sites than any other payment service. And it has a mobile-phone application.
Drawback
If you have a dispute with a seller and you have linked your PayPal account to your checking account, you must go through PayPal's dispute process. Instead, link it to a credit card, so you can go through your card issuer to get a refund.
Bill Me Later
How your payment is processed
You provide your date of birth and the last four digits of your Social Security number. Bill Me Later, which is also owned by eBay, will then run a credit check on you. If you qualify, the service will pay the seller for your purchase and then send you a bill. Depending on the seller, you have 25 or 90 days to pay before Bill Me Later starts charging interest (usually 19.99 percent).
Benefits
This can be a way to get free financing for a limited time. The service is available through more than 1,000 online stores, catalogs, and travel partners.
Drawbacks
The credit checks could ding your credit report if you've had a lot of other recent inquiries, so you might not want to use the service if you plan to apply for credit soon. Bill Me Later doesn't accept credit cards; you must pay online from a checking or savings account. And if you don't pay the bill when it's due, you'll face stiff interest. The company is involved in a lawsuit over those high interest rates, which might limit its future availability.
eBillme
How your payment is processed
You provide an email address. EBillme then sends you an electronic bill that you pay online from your bank account. EBillme sends you an electronic bill that you pay online from your bank account. Then your purchase is shipped.
Benefits
If you don't want to use a credit card, it's an easy way to pay. You'll find an eBillme option at more than 800 stores online. The service will refund the difference if you find the same item at a lower price within 90 days of some purchases. It offers a 1 percent cash-back program, and eBillme doesn't share your data with business partners for marketing purposes.
Drawbacks
If you're unhappy with your purchase, getting your money back could be difficult. EBillme promises refunds up to 90 days after the purchase date, but only for items that cost less than $500 (and only up to $1,000 a year). It will not refund taxes or shipping costs. And if an item arrives damaged or doesn't work, you might be out of luck, at least according to the policy we saw on eBillme's Web site.
Google Checkout
How your payment is processed
After you sign up for a Google Checkout account you can send and receive money online. You can't link to a checking account but you can to a credit card.
Benefits
Google Checkout doesn't impose its own return policy. Instead, the seller's policy holds. If you're not happy with what you bought, sign on to Google Checkout, send the seller an e-mail, and then wait for it to authorize a refund.
Drawbacks
Google Checkout is accepted by far fewer sellers than PayPal. And you have to opt out if you don't want it to share nontransaction information about you with its subsidiaries.
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-- Consumer Reports
Nov 04, 2010
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