Telecom clearinghouse BSG Clearing Solutions (BSG) has devised a way to overcome consumer reluctance to provide credit card information over the Internet.

On Monday, the company introduced Bill2Phone, a payment method that lets landline subscribers charge digital content Web purchases to their telephone bills.

The interface looks like the typical online credit card form it just attaches charges for content such as iTunes or Xbox to the customers monthly phone bill. BSG started developing the platform 18 months ago because research shows up to 40 percent of the U.S. population doesnt have credit cards and 78 percent simply dont want to give out credit card numbers online.

The method also works well for parents who want to let their kids buy digital content, but who dont want those kids knowing, and possibly taking advantage of, their credit card information, said Greg Carter, president of BSG.

BSG has secured several contracts with LECs and online merchants, Carter said. The company also is working to evangelize the merchant instead of the LEC, he added, so that retailers understand how much more money they can reel in if they give customers purchasing options.

The clearinghouse boasts partnerships with more than 1,400 LECs, so merchants that offer Bill2Phone actually can touch more than 140 million local phone bills, BSG said.

Bill2Phone contains several safety features. As part of its risk management technology, when a subscriber first signs up for Bill2Phone, she provides answers to a variety questions that only she or someone else in her family will know. The platform comes with other security assurances to protect merchants, LECs and consumers.

Other Bill2Phone features include e-mailed statements to help subscribers track the spending on their phone bills; e-mail purchase confirmations, which are available to merchants and their customers; and a recurring payment option, so subscribers can automatically charge purchases to their phone bills.

Bill2Phone is part of BSG’s new Advanced Payments Gateway, which also offers connectivity to an array of credit card processing platform, and advanced risk management services.

BSG Clearing Solutions www.bsgclearing.com