How are credit cards affecting online business?

Here’s a couple of random thoughts. I’d like to know what you think.

Online businesses can’t take cash, few take checks. Online businesses are reliant on major credit and debit cards (many users even use their cards as funding for PayPal).

Has e-commerce suffered because of the credit crunch and the current economic climate . Is a lack of payment options hurting online sales?

Or – is it the other way around? are more people turning to the Internet to purchase goods because of price and reliance on credit?

I know around Christmas sales were down (except for Amazon) but they were down on general. Also lots of companies are looking for different forms of Business Loans to stay afloat.

What do you think?