Apply card credit online uk

Miller Brothers, the Doncaster-based group with 40 stores in the UK, has moved from ISDN transmission to an Internet based on-line system. It means credit applications are processed almost instantaneously with responses received within three seconds. "There is less scope for error in transferring information," explains Tony Snape, head of sales at Nova Retail Finance.

"Also, the time advantages over traditional phone or fax authorisation are obvious: applications on-line are processed in seconds while the old method of phone or fax would take two to three minutes."

"The on-line system is first rate," says Martin Foster, managing director of Hiller Brothers. "Arranging a credit scheme for a customer could not be more straightforward. Authorisations are given by Nova over the Internet and we then print off the agreement in store for the customer to sign. The system is flexible and we can see great potential to develop it further."

Black Horse Retail Finance continues to make progress on the back of its on-line system, me2u. David Scott, managing director of Plumbs comments: "We recently changed to Black Horse as we wanted an Internet-based credit system that was easy to use, gave us a quick response and is reliable."

Apart from speed and efficiency on-line credit systems can have other benefits. As Hr Scott says: "Me2u has also increased our finance income."

With its ability to take the majority of the customer information straight from the retailer's Epos system (thus saving duplicate entries for credit), Black Horse's FastTrack service really gave on-line credit authorisation a shot in the arm. So successful has FastTrack been that director of retail finance, Graham Field, reports: "Its been three years since we first introduced FastTrack and we're now approaching 200,000 applications being processed through it. It's now a proven, robust system."

Significant progress has also been made in on-line processing by Halifax Cetelem. "Our ORCA apply on-line processing application has been welcomed in the industry for the speed, accuracy, and efficiency it gives to credit applications in store," says George Taylor, sales and marketing director of Halifax Cetelem.

"Since its launch in February this year take-up among retailers has been rapid, to the point where we are currently processing 70% of our applications on-line and forecasting an increase to 80% through 2003."

"We're gaining market share," says Nova's Mr Snape. "Last year, we saw a 3% growth in our overall volumes." And at Nova interest-free is still topping the popularity stakes with retailers.

Recently the OFT decided that the term 'Interest Free Option' was misleading to customers. "We've renamed the Interest Free Option to Interest Option because of the OFT Directives," Tony Snape acknowledges. "Whether that will have any effect on the marketability of interest-free I don't know." As far as Nova's experience of electrical retailers is concerned, short-term interest-free is very popular. "Host of the electrical trade still manages to keep it to six months. However on the larger ticket sales they will go up to two or three years interest-free credit," Tony Snape comments.

Meanwhile, Open + Direct is seeing a big increase in the popularity of Buy Now Pay Later agreements. "For many retailers, this is a more cost effective option than Interest Free Credit," says Steve Penistone, sales and marketing manager of Open + Direct Retail Services.

Hr Taylor of Halifax Cetelem, agrees: "BNPL remains extremely popular this peak season. Twelve months' BNPL is viewed as a `category killer' by several high street electrical retailers, meaning that this is an offer that is unlikely to be beaten elsewhere."

Things are moving in the opposite direction at Black Horse, however. "Eighteen months ago, over half of our business was on Buy Now Pay Later or Interest Free Option," recalls Hr Field. "But now we're down, in percentage terms, to single figures for both those products. We're doing a mixture of straight interest-flee and interest-bearing."

Typical length of an interest-free agreement for Black Horse, in the electrical sector, is 10 to 12 months. Hr Field is also conscious of the OFT's stance on Interest Free Option. "Let's face it, low-rate finance deals at say 13.9% APR, where the products are far more transparent, are good news for the customer and, more importantly, for the retailer," he observes. "If it's Buy Now Pay Later or Interest Free Option, the salesperson will often look to sell it on the interest-free period."

Average balances financed are rising at Halifax Cetelem. "We've seen average balances in electricals increase by around 100 [pounds sterling] in the last year," says Mr Taylor. "There's been a tangible increase alongside greater penetration of high-end products, such as plasma and AV equipment."

Open + Direct offers a different slant. "Our average balances are rising in the electrical sector due to the fact that more people are using No Deposit deals," says its Hr Penistone.

A new service, the AURA card, has been successfully piloted by Halifax Cetelem this year. "Initially in Hughes Electrical and subsequently on high volumes in a national high-street electrical retailer," explains Hr Taylor. "Our objective is to ramp up volumes now by launching the concept in all our retailers. Issuing a card off the back of each credit agreement has huge advantages for the retailer in terms of free on-statement communication to customers and more importantly a dramatic effect on repeat purchases."

With low interest rates it seems electrical retailers have a great opportunity to sell in-store credit as an alternative to credit cards. "Retail credit offers retailers many more advantages than credit cards and for independents in particular, it is a very effective sales tool." agrees Open + Direct's Hr Penistone.

Black Horse's Mr Field believes that the current low rates of interest being offered by many electrical retailers are a golden opportunity.

"Retailers who use FastTrack know that there's hardly any additional work now to offer credit as an alternative to credit cards. With immediate decisions available, salespeople can be really positive, with in-store APRs frequently lower than credit cards at the moment."