Your phone bill can be a credit card -- but with some risks

(CNN) -- Could your phone bill act like your credit card -- and should it?

Wireless carriers have begun offering that very option, expanding beyond already existing donations-via-text-message programs. But the consumer advocacy group Consumers Union is voicing serious concerns about the practice.

This month T-Mobile is rolling out its plan to let its customers buy digital content and services (such as games, magazines and more) through their mobile Web browser and charging them on their phone bill.

T-Mobile has offered this service, called direct carrier billing, since 2009 for apps purchased through Google's Android Market. But by expanding it to browser-based purchases, it's now becoming available to T-Mobile users on any type of Web-enabled mobile device -- potentially even feature phones.

Most wireless carriers offer some form of direct carrier billing, but it is unusual to extend it to browser-based purchases.

According to Consumers Union , "T-Mobile's announcement is just the latest development in emerging mobile payment services that raises concerns about whether consumers will be protected from fraud or merchant mistakes."

Regarding consumer protection, T-Mobile has explained that "Payments that are processed using direct carrier billing will be secured and monitored by both T-Mobile and the billing service partners. Extensive fraud controls, age-appropriate content blocking and spending limit management tools will be available to provide T-Mobile customers with a secure environment for purchasing premium content from trusted brands and merchants.

"In addition, a two-step customer authentication and purchase verification process will ensure a secure transaction. Purchases will also be detailed on the customer's monthly T-Mobile bill so they know exactly what they are paying for."

T-Mobile has not yet specified how much customers will be allowed to charge to their phone bill, whether they will require a credit check or what interest rates may apply. (It's highly unlikely that T-Mobile is offering free credit.)

Nor has the carrier clarified how it will handle disputed charges or cases where customers are unable to pay the full amount of their bill due to the amount of charges racked up.

Such terms would be included in updates to cell-phone contracts -- so it's a good idea to find and read those terms (which may involve delving through considerable fine-print legalese) before you try charging something to your phone bill.

Wireless Credit Card Processing: Guaranteed For Mobile Business ...

In case of purchasing product or service online, customers are more comfortable in the payment processing through credit cards. Those, who are not aware of the credit card payment processing, are more likely to miss the opportunity of pulling more consumers and profits to their business. When we pay through the credit card, we find this process of payment more secured and safer. Moreover, this type of payment processing service guarantees better professional service to the business. But if this process is done manually, then it will take more time and involve more difficulty. In case of computerized process, this kind of payment process will involve internet merchant account for immediate service. For the sake of safe transaction, you will find the use of encrypted and secured Secure Socket Layer (SSL). And this kind of application guarantees a web-based terminal, which can make an access to the account. Different types of credit card POS terminal are available in the market. In the market, there are various types and styles of terminal available, which are used as per the business requirement. And of course, price ranges of different terminals go up and down according to the use of functions and technologies. We can find variety of card readers, which are available in the market with a display and small keypad. And this kind of card reader is found in the basic type of the credit card POS terminal. We find the usage of terminal without the attached printer for most of the merchants. But retail merchants always choose the credit card processing terminal with the attached printer. In case of mobile businesses, we can see the huge usage of wireless credit card processing with the help of wireless POS terminal. This kind of terminal for wireless credit card processing is much costlier but its cost is found to be adjusted with the processing volume. We can find the usage of this wireless payment processing for the mobile businesses like, door-to-door salesman, taxi cab drivers, fund raisers of non-profit organization, seasonal shop owners etc. In this type of process, first the information of the customer’s credit card is checked and then money is withdrawn from the customer’s account, which goes directly to the merchant account. This kind of terminals is capable of handling more than one internet merchant account at the same time. And these terminals guarantee faster and cost effective way to process credit card sales.

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