But with added costs and added customer service problems, such as PayPal's recently reported fraud and freezing of funds, it's unlikely that any one alternative payment method will unseat charge cards as the de facto standard for Internet payments. Credit cards mean power. Credit cards are powerful tools in the hands of savvy consumers. Not only do they enable consumers to wield expanded purchasing power, they carry consumer protections that are as of yet unmatched by alternative payment methods. Witness the rise of escrow services and other forms of purchase insurance to accompany these new payment methods.
Credit cards are familiar.
Credit cards are as much a part of the American psyche as jazz, apple pie and Kool-Aid. They come in styles and colors to match our personalities. They're simply ingrained in our heads. This is not yet the case with any one alternative method. Consumers will need acceptance online and off-line, security and fraud protections and possibly even incentives before new payment services will become ubiquitous.