Image: A customer opens his wallet
If you're one of the many consumers no longer eligible for credit, paying for online purchases can be tricky. Cash is a viable option and restricting yourself to cash purchases is a great way to stick to a budget.
updated 12/21/2010 2:37:06 PM ET 2010-12-21T19:37:06

At Christmas, shopping online doesn’t have to revolve around a revolving line of credit.

As a nation, we've been quite good at getting away from credit cards and increasing the savings rate. Restricting yourself to cash purchases is also a great way to stick to a budget. And if you're one of the many no longer eligible for credit, paying for online purchases can be tricky. Many people think there's not a way to use cash when buying online, but they're wrong.

True, buying online makes dipping into credit awfully tempting. Paypal is great option for some but it still needs to be linked to a personal bank account, credit or debit card. That means providing the information to PayPal, normally considered a secure site but recent hacker activity in the aftermath of WikiLeaks has some thinking twice.

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So eBillme got my attention.

eBillme is another way to pay online. There are some 800 websites signed up with the service and offer eBillme as a payment option at checkout. Unlike Paypal, there's no linking to a credit card or bank account. You just get a bill e-mailed and then pay it online like a utility bill or mortgage payment. All that's needed is an email address.

Admittedly, there's something nicely nostalgic about getting a bill in the mail, and simply writing a check. This is merely an electronic version of the old process.

eBillme has been around since 2005, but according to Samer Forzley, vice president of marketing, some new and compelling features have been added more recently including buyer protection on purchases similar to those with a credit card and if you find a product cheaper elsewhere online, eBillme will credit the difference. 9 worst convenience foods for your wallet and waistline

In addition, participating merchants are offering between 5 percent and 10 percent back on gift card purchases. The amount is redeemable as a coupon toward another purchase or once it totals $50, they'll send a check. Some are "layering discounts," according to Forzely, allowing buyers to get an extra percentage back through eBillme when they redeem the gift card too.

There's a growing list of retailers using eBillme, including biggies like Kmart, Sears and Crutchfield, and even more offering the option for gift card purchases including, J.C. Penney, Home Depot and Zappos. Buying gift cards online is a recommended way to avoid one of the many gift card scams this holiday season, and you get to pay in cash. Sweepstakes scams shut down by FTC Savings experiment: Buying luggage without spending bags of money

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