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It's PayPal Time Online retailers are discovering that alternative payment services fit their businesses to a "T."

By Melissa Campanelli

Opinions expressed by Entrepreneur contributors are their own.

A growing number of Web retailers are plunging into the world ofalternative online payment options to replace or supplement creditcard payments. Alternatives include a "bill me later"button on the site, payment by paper or electronic check, or theuse of payment services such as PayPal. Although the use of otherpayment systems reflects ongoing consumer concern about onlinecredit card fraud, these options are often less expensive andeasier to use than setting up a merchant account, which is requiredto process credit card payments.

Most e-tailers favor PayPal's service. Based in MountainView, California, it's the world's largest online paymentsystem. Recently acquired by eBay, PayPal lets consumers send moneyto anyone with an e-mail address through their credit card orchecking account. Consumers sign up once for the free service-afterthat, they use their account number to buy products onlinesecurely, conveniently and cost-effectively.

A Merchant's Pal?