America West Becomes First Airline to Adopt Bill Me Later

America West Airlines, a unit of America West Holdings Corp., has become the first airline to adopt I4 Commerce Inc.'s Bill Me Later Internet payment system. To encourage usage of the new payment option, the Phoenix-based air carrier is offering deferred billing for 90 days or more to qualified customers, who will be able to book flights now and not pay until Jan. 1, 2005. Bill Me Later is a Web-based payment method that lets consumers have access to lines of credit without using credit card numbers online. Instead, consumers who choose the option enter their birth dates and last four digits of their Social Security numbers. I4 Commerce runs a credit check via electronic links to credit bureaus, making a decision in three seconds. If it okays the transaction, it credits the merchant and bills the customer. America West, the nation's second-largest discount airline, says it is offering the non-card option because of consumer fears about entering credit card data on Web sites. The company cites research that shows six out of 10 consumers have such concerns. “We want our customers to feel comfortable purchasing online, and this new service will help remove credit card security concerns that online customers might have,” said Dion Flannery, vice president of scheduling, route planning, and Internet distribution for the airline, in a statement. The company's planes carry 55,000 passengers daily to 96 destinations in the U.S., Canada, Mexico, and Costa Rica. I4Commerce, based in Timonium, Md., has been concentrating on signing high-volume merchants doing a minimum of $50 million annually for its service (Digital Transactions News, March 31). It charges merchants 1.5% plus 15 cents per transaction, and extends credit to consumers at a 17.9% APR. Bill Me Later is also available to retailers through alliances I4 Commerce has made with processors First Data Corp. and Paymentech L.P.