This could be a boon to online merchants because currently they are forced to absorb all costs of "charge-backs," or money lost if credit card fraud occurs. So far they've persuaded a handful of online merchants of this benefit, signing up MP3.com, Deviate Industries, Anycraze.com, Open Season Wild Game, and Quick Course to accept eCharge accounts. The company is targeting an additional 200 of the Internet's top e-tailers, looking to persuade them to accept Net Account.
For consumers, the Net Account service offers a couple of extra benefits in the form of subaccounts and spending limits. For example, parents could give each of their kids a subaccount with a specific dollar amount enabled each month. They can also restrict the sites where that dollar amount may be spent. And for those budget-minded consumers, eCharge can also enable spending limits so that no one accidentally sspends more than they planned to for any given month.
The caveat is that consumers can use Net Account only at merchant sites that accept it and right now there aren't that many. ECharge has a limited window of time before the e-tail holiday shopping season site lockdown in early November to persuade merchants to offer the payment option and integrate it into their sites.
But with a second round of venture funding under its belt to the tune of $50 million, eCharge executives are confident that they can wait until next year if they need to.