You may want to consider getting an SSL certifcate for your website. Sending passwords in plaintext is never a good idea.

They are not being sent in an open way, but coded on the run, so you don't need to worry about this. :)
I think many services out there don't actually have an ssl certificate at all, but thanks for asking!

However, we will be installing it shortly just to make the website absolutely secure, we've obtained a Thawte certificate for that purpose already.