I am in the process of getting everything set up for Joromo (my hosting company) and I’ve set up Paypal. I’ve read a lot of positive things about 2checkout on this site but I had a question for those that are using their service.

According to their fee schedule (http://www.2checkout.com/community/fees) they are charging a 5.5% commission + $0.45 fee for each transaction processed through them (in addition to the $49 setup fee). So on a $50 transaction, it’s costing me $2.75 + $0.45 or $3.20 total. Now according to Paypal's fee schedule (https://merchant.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=merchant/wp_standard), they are charging 2.9% commission + $0.30 fee on all transactions making my cost on the same transaction only $1.45 + $0.30 or $1.75 total. So in all, I’ve saved $1.45 using Paypal for the same transaction which isn’t a lot but compounded over a few hundred clients and you are talking significant money.

So In saying all that, why do people choose to use 2checkout? I understand the argument for providing more payment options but Google Checkout, for example, has the exact same pricing structure as Paypal and provides similar options. So why 2checkout? :eek:

As far as I'm aware you can use 2checkout's API to accept credit cards on your website.

That is the only advantage I'm aware of. Could be mistaken though..

So goes google checkout. But seems far more powerful and competitive than 2CO

In comparisons paypal seems to be cheaper options overall and lower commission rate as compared to 2CO.

As far as I'm aware you can use 2checkout's API to accept credit cards on your website.

That is the only advantage I'm aware of. Could be mistaken though..

Paypal offers the same ability for a fee

I dont know about google checkout, but man paypal fees suck for large transactions. A client sent 250$ and they took off nearly 10$ or something...

Oh well XD

until we find some other alternative :P

regards,
Ryan

I think it is always good to accept PayPal and Google as they are the big names everyone knows and trusts.

Its mainly to do with bank cards, i personally use google checkout when the client says "My paypal wont let me use my card".

You get it alot, but yes googlecheckout, paypal and moneybookers. I don't know why people use hundreds of different ones, they all do the same job.

Its mainly to do with bank cards, i personally use google checkout when the client says "My paypal wont let me use my card".

You get it alot, but yes googlecheckout, paypal and moneybookers. I don't know why people use hundreds of different ones, they all do the same job.

I guess some customers do not trust Paypal (plenty of horror stories on the internets) but trust Google. Or vice-versa. Stick to only one of them and, sure enough, this or that customer will refuse to buy from you. Give your customers choice and they will be more likely to buy what you're selling.

I would prefer to use paypal but giving the customer's more then 1 choice would be much better

So In saying all that, why do people choose to use 2checkout? I understand the argument for providing more payment options but Google Checkout, for example, has the exact same pricing structure as Paypal and provides similar options. So why 2checkout?

One of the common reason of using 2CO is paypal doesn't support lots of the countries which 2CO does. Moreover, people use 2CO as a Direct Credit Card payment gateway.

I don't know about 2CO but I use Paypal because it's easier and more people seem to have a PayPal on hand.

you could offer both payment gateways, (if you want to pay the 2co $49 setup fee)

I've had issues in the past with 2checkout and tangible services, paypal's been great.

I hear horror stories over frozen accounts @ paypal too though, so I guess its a whatever works best for your particular type of transactions :)

Also you can use 2CO and accept paypal through 2CO gateway.

I also had issues with 2Checkout. For one, it took them over 14 days to clear funds. That's a long time. paypal was in 2-3 days max. Things might have changed now, but i have stuck with paypal ever since.

Jon

paypal is good option for any companies willing to accept payments through credit cards but had few complains. But i have also used 2checkout they refund customers who uses there credit cards from outside there countries. In return they ask customers to send them scanned copy now who will send scanned copies ? just think about it.

Payment processor has to be easy processing.

2Checkout was a good option back in 2002. Now these days, they just seem very dated and their fees are high.

i also prefer paypal have been with it since last years

2checkout is a good alternative way to still accept paypal in the event for paypal account gets limited and they tell you to go away.

I prefer paypal though, It's easier.

We offer both Paypal and 2Checkout i've noticed user without paypal account prefer to use 2Checkout to pay via credit card instead of use paypal.

We offer both Paypal and 2Checkout i've noticed user without paypal account prefer to use 2Checkout to pay via credit card instead of use paypal.

I would agree with that assessment. Though credit cards can be used by non-PayPal account holders to pay for a transaction, most non-PayPal account holders seem to prefer not to involve PayPal.

-mike

I would agree with that assessment. Though credit cards can be used by non-PayPal account holders to pay for a transaction, most non-PayPal account holders seem to prefer not to involve PayPal.

-mike

Yeah, it's because most of them are either from some foreign country where their cards keep getting declined by PayPal's (very nice) security system.

...or

they are using a) a 'banned' -> usually stolen card; b) not supported in their country or c) have something against PayPal because their card is used on some limited account that they decided to scam someone on eBay from.


I've never had a problem with a good client using PayPal - one who can verify their details and is clear of any, well, "issues."

There are very few people that just detest PayPal as a personal choice, most cannot physically use it.

:agree:

One problem I found with 2CO is as a UK Merchant because I want to sell in GBP £ my Customers would only be able to pay with Visa & MasterCard and none of the other supported methods that 2CO has.

Of course PayPal offers all the card types that 2CO does as well as Direct Debit and the variants for other countries + lower fees.

2CO is better because their support is very good and they accept paypal too, so you hit two birds with one stone

Go with Paypal

Definitely Paypal would serve you better

2CO is killing me! If thats enough to use only one payment gateway, go with paypal.

2co really has extremely high fees and meaningless "R Held" fee which is captivating your money for 90 days.

Paypal is a very highly trusted name. There are also some great advantages:

1. NO setup fee

2. LOW transaction fee

3. MINIMUM verification process, not at all intrusive

4. EASY to setup and get started

5. LARGE number of people out there who know PayPal API and can help you out if you run into trouble

6. I don't know about 2CO, but you don't ever need to worry about the security of clients' credit card details, as all that is taken care of by PayPal for you...

Paypal is a very highly trusted name. There are also some great advantages:

1. NO setup fee

2. LOW transaction fee

3. MINIMUM verification process, not at all intrusive

4. EASY to setup and get started

5. LARGE number of people out there who know PayPal API and can help you out if you run into trouble

6. I don't know about 2CO, but you don't ever need to worry about the security of clients' credit card details, as all that is taken care of by PayPal for you...

I love reading these kudos to PayPal threads, like many of you, I was down for PayPal never had a problem with then for 4 years, then my business exploded! We were doing $20 K a month, then we jumped to $25K a week! Great right!?

No! Once we had 88K in there I got the limitation email, requested all types of documents, which I sent in. They still would not release the funds. If you business stays under 25K a month you may never have a problem with them. I think PayPal should verify upfront versus when they feel like it.

That almost put us out of business! Due to lawsuit a another person they screwed over is how we got our money back! I will never used them ever again. Research how many times they have been sued and lost over their policies! All that glitters is not gold.

Yeah, it's because most of them are either from some foreign country where their cards keep getting declined by PayPal's (very nice) security system.

...or

they are using a) a 'banned' -> usually stolen card; b) not supported in their country or c) have something against PayPal because their card is used on some limited account that they decided to scam someone on eBay from.


I've never had a problem with a good client using PayPal - one who can verify their details and is clear of any, well, "issues."

There are very few people that just detest PayPal as a personal choice, most cannot physically use it.

:agree:

I humbly disagree. I offer both Paypal and 2Checkout. Many people do not like Paypal and won't use it. It is always good to have a 2nd choice. Most of my customers are in the U.S. and my ratio is typically 2 customers will use 2Checkout to 1 customer using Paypal.

I have had a problem with Paypal in the past as a customer. When I was paying, the site was briefly hacked and my credit card information was stolen. There was one fraudulent charge that I had to deal with, and I had to cancel the card. Lots of hackers like Paypal. I personally use Paypal to buy items only on ebay.

2checkout allows countries that Paypal does not and Paypal payments to the seller are instant while you have to wait for a certain amount of money to hit your 2checkout account before you get paid and you have to wait every Thursday with 2checkout. 2checkout doesn't require a bank account or a credit card but you can use your bank account. Paypal requires Payment Verification most of the time with a Bank Account or A Paypal Credit Card. Also, people don't trust Non-Verified Paypals as much as Verified Paypals as well.

I have a subscription based website and have used PayPal for the past three years. Yes, they are the cheapest but they have the worse customer service. I have emailed them quetions and either get a generic response that some guy in India just copied and pasted without even thinking or I get nothing. Also, their site has problems with the return URL and over the past three years it has disappeared many times and when I try to get it fixed they act like it is a new event everytime. The most recent time it happen it took over two months for them to even try and fix it. It was like I had to prove that their site was not working rather then they looking into the problem. And again this is the same problem that occurs over and over again. You would think that someone there would have documented it. So my advise is to spend the extra money and use someone who cares about you. By the way PayPal will refund anyone's money without even giving you a proper explanation. They will tell you NOTHING and just give the money back to the customer. SO if you want to be a proper business stay as far away from PayPal.

Why not use Authorize.net? Or another merchant? They might charge a minimum monthly fee, but they are top notch when it comes to service and support. I have used them in the past and compared to some other processing companies there was no comparison.

Months ago we looked at accepting 2CO over Paypal, but realistically, it involved far more setup, more cost, more time, to the point we felt it became almost pointless.

Our audience are webmasters and technically minded folks however. So you should consider your market. If its an "online" type of market, they will all have Paypal, and 2CO or Authorize.net etc become pointless to have.

well i used paypal for some years and now shifted to authorize as it works really well with my website and transaction won't go in sandboxes.

Paypal is a biggest paygate in internet,large number of people are using PayPal so I think you should choose paypal.

2checkout is better to prevent chargebacks.

2checkout is worse at chargebacks. They give them in a second.
We used them in the past and we nothing but trouble.
CCAVENUE & PayPal are the best according to me.

I am in the process of getting everything set up for Joromo (my hosting company) and I’ve set up Paypal. I’ve read a lot of positive things about 2checkout on this site but I had a question for those that are using their service.

According to their fee schedule (http://www.2checkout.com/community/fees) they are charging a 5.5% commission + $0.45 fee for each transaction processed through them (in addition to the $49 setup fee). So on a $50 transaction, it’s costing me $2.75 + $0.45 or $3.20 total. Now according to Paypal's fee schedule (https://merchant.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=merchant/wp_standard), they are charging 2.9% commission + $0.30 fee on all transactions making my cost on the same transaction only $1.45 + $0.30 or $1.75 total. So in all, I’ve saved $1.45 using Paypal for the same transaction which isn’t a lot but compounded over a few hundred clients and you are talking significant money.

So In saying all that, why do people choose to use 2checkout? I understand the argument for providing more payment options but Google Checkout, for example, has the exact same pricing structure as Paypal and provides similar options. So why 2checkout? :eek:

One of the reasons we use 2checkout.com is because it detours fraudulent transactions. Not only that, but if you are a paypal customer, you can pay using your pay-pal account. We are also able to allow clients to pay using various currencies and e-checks. Overall its just a better payment gateway in my opinion (definitely worth the extra expense).

2checkout is better to prevent chargebacks.

On your own end, but if 2Checkout receives a chargeback they immediately reverse the funds from your bank account, back to the original card holder - no questions asked from either party. It sucks, I moved on and went with CDGCommerce and the quantumgateway. It works wonders :D

On your own end, but if 2Checkout receives a chargeback they immediately reverse the funds from your bank account, back to the original card holder - no questions asked from either party. It sucks, I moved on and went with CDGCommerce and the quantumgateway. It works wonders :D

From my experience, usually if a someone issues a charge-back through 2checkout.com its legitimate. If you run a smooth operation and you take care of your clients, you should not have much trouble with charge-backs.

2checkout.com is popular amongst merchants because they do an excellent job of notifying you if a transaction is suspicious or fraudulent (this is why you are less likely to receive charge-backs via 2checkout.com). However if you are not providing a solid service and your customers are issuing charge-backs, that is a whole different story :)

We've been using 2checkout.com for about 5 years, with thousands of transactions and I think we have only had one charge-back (because of a mis-communication on our part).

From my experience, usually if a someone issues a charge-back through 2checkout.com its legitimate. If you run a smooth operation and you take care of your clients, you should not have much trouble with charge-backs.

2checkout.com is popular amongst merchants because they do an excellent job of notifying you if a transaction is suspicious or fraudulent (this is why you are less likely to receive charge-backs via 2checkout.com). However if you are not providing a solid service and your customers are issuing charge-backs, that is a whole different story :)

We've been using 2checkout.com for about 5 years, with thousands of transactions and I think we have only had one charge-back (because of a mis-communication on our part).

Oh I couldn't agree more, if you run your own pre-fraud screenings and take care of abusive and fraudulent clients before they get to that point (chargeback) then you'll have no trouble.

I do remember some cases though, how clients have gotten months of service fees back simply by filing a dispute with their credit card company. 2Checkout chickened out, and refunded them over 6 months of service. This was back in 2006, so I'm not sure if they've changed.

It's similar to how PayPal works, with their dispute system - if a client doesn't like their service they can dispute or claim. However, with 2Checkout if the client decides one day he wants a refund, it's pretty easy to get it back.

I do remember some cases though, how clients have gotten months of service fees back simply by filing a dispute with their credit card company. 2Checkout chickened out, and refunded them over 6 months of service. This was back in 2006, so I'm not sure if they've changed.



Ahh I see, fortunately I have never had that problem. But either way, it doesn't matter which payment gateway you choose, its very hard to dispute charge-backs for non-tangible items (that is unless you have an actual signature and copy of the credit card for the transaction in question.

I guess that is part of the risk of doing business.

I am in the process of getting everything set up for Joromo (my hosting company) and I’ve set up Paypal. I’ve read a lot of positive things about 2checkout on this site but I had a question for those that are using their service.

According to their fee schedule they are charging a 5.5% commission + $0.45 fee for each transaction processed through them (in addition to the $49 setup fee). So on a $50 transaction, it’s costing me $2.75 + $0.45 or $3.20 total. Now according to Paypal's fee schedule, they are charging 2.9% commission + $0.30 fee on all transactions making my cost on the same transaction only $1.45 + $0.30 or $1.75 total. So in all, I’ve saved $1.45 using Paypal for the same transaction which isn’t a lot but compounded over a few hundred clients and you are talking significant money.

So In saying all that, why do people choose to use 2checkout? I understand the argument for providing more payment options but Google Checkout, for example, has the exact same pricing structure as Paypal and provides similar options. So why 2checkout? :eek:

For Paypal i can say that the customer service they provide is not good. Good as in the services are not verified. It will not ask you any question like your website terms and conditions. Whereas 2CO provides good customer services like customer chat support. Although 2CO is a bit expensive i would prefer that only.

For Paypal i can say that the customer service they provide is not good. Good as in the services are not verified. It will not ask you any question like your website terms and conditions. Whereas 2CO provides good customer services like customer chat support. Although 2CO is a bit expensive i would prefer that only.

2CO requires everyone to pay $50 upon signup, and charges roughly twice as much in transaction charges. Since PayPal is a free service (basically, comparing it to 2Checkout at least) they rake in a lot of "abusive" and "freebie" clients which in turn will abuse their support services.

I have only used PayPal and have had no problems with them over the years.

2checkout does extensive fraud checks, to the point of manually calling the customers in person to verify them. so, its safer to work with them.

According to me, paypal is a definitely better choice , because its most widely used payment gateway in the world.

PayPal is the most expensive as they are the lower tier/easy to use package. If you can, get your own merchant account. It will be the cheaper way to go. You will end up paying 3% and not over 5% which is borderline criminal. Oh and by the way, PayPal will hold your money for up to 30 days. If you make too much money they can hold it for up to 3 months as a "reserve".

Comparing paypal and 2co is like comparing a speedy mouse and a slow as anything turtle. Really, there is no comparison.

Paypal:
Instant payment, instant availability (through their debit card), or 2-3 day availability (over ACH/instant transfers)

2CO:
Instant payment, we'll get to you in 2 weeks, sometimes 3, maybe as much as a month. Basically, we'll pay you whenever we feel like it.

If you absolutely NEED a credit card provider, go with google checkout, or worldpay, which I don't think has the same delay setup.

I would rather use Paypal than anything else, Only because most clients feel safer using Paypal. Paypal is also very user friendly and the fee's are not that bad.

2CO seems a little off the top for me, I don't know if I would trust it.
I like being able to access my funds when I have them not, every week.

People use 2checkout if they lose their PayPal account, or if PayPal doesn't support their country or product. I've used both a lot over the years and the downside to 2checkout is you automatically lose any dispute, where PayPal gives the chance to send in proof. Also PayPal has seller protection which I've used several times and gotten reimbursed.

Also when we did the math, 2checkout fees worked out to actually be around 9.65% for that business because they add so many other fees. We gave up on them long ago when a customer requested a refund on a $700 product and the rep gave it to them automatically and then told the customer to ship the product to 2checkout! They kept it for themselves and gave the refund...yep.

I would use PayPal for low volume merchants as much as you can, people recognize it and they take care of security very well for the most part. It's only when you get above $30k a month that it makes sense financially to get a real merchant account (if you have a business type where you can get one to beat their rates).

In my opinion Google Checkout and Paypal both are great as both are some well known names :)

In my opinion Google Checkout and Paypal both are great as both are some well known names :)

Paypal is extremely expensive and they wait weeks to pay. I have never tried google.

2CO:
Instant payment, we'll get to you in 2 weeks, sometimes 3, maybe as much as a month. Basically, we'll pay you whenever we feel like it.

If you absolutely NEED a credit card provider, go with google checkout, or worldpay, which I don't think has the same delay setup.

2CO has weekly remittances and almost the same rules apply to WordPay as well. On the contrary establishing an account with WorldPay is a very tedious process-- they require you to submit too many forms and verification documents, and also their annual maintainance fee is kinda high, about $200.
IMO, 2CO has the best fraud screening facility in the industry and its free, unlike WorldPay that charges $.X per payment.

Unless you process considerable amount of online payments (minimum 5-figures) getting a merchant account is not advisable. There are a lot of over-heads like monthly fees, SSL, PCI-compliance checks, et all. In such cases, paying the extra 2-3% makes sense, IMO. Also, I have heard many people are more comfortable to pay using widely used methods like PayPal & 2CO rather than entering their card details directly on the seller's website. Maybe that accounts to some increase in conversions?

2CO has weekly remittances and almost the same rules apply to WordPay as well. On the contrary establishing an account with WorldPay is a very tedious process-- they require you to submit too many forms and verification documents, and also their annual maintainance fee is kinda high, about $200.
IMO, 2CO has the best fraud screening facility in the industry and its free, unlike WorldPay that charges $.X per payment.

Unless you process considerable amount of online payments (minimum 5-figures) getting a merchant account is not advisable. There are a lot of over-heads like monthly fees, SSL, PCI-compliance checks, et all. In such cases, paying the extra 2-3% makes sense, IMO. Also, I have heard many people are more comfortable to pay using widely used methods like PayPal & 2CO rather than entering their card details directly on the seller's website. Maybe that accounts to some increase in conversions?

I think you hit the nail on the head. Paypal has its place for smaller sites and or a small volume of transactions. You will pay pay $30 per month for pro which is what you will need for access to the API.

And you are also right when you mention peoples comfort level with using paypal.

I used to moan and whine about paypal all the time but after trying some other ones it is good as long as you do your own fraud screening, make sure email/location matches and so on. I used to look at about 1% a month in fraud chargebacks as cost of doing business but it has got a little better. Definitely 2co is a pain and you will lose money.

Man, this thread goes on and on. I was a 2Checkout and Paypal Merchant account user. I tried GoogleCart but it was not user friendly for my customers. I have just dropped 2Checkout because I am very tired of their high fees and they hold 15% of your money in reserve for 90 days. Yes, their fraud protection is excellent but my sales are average of $30 each so I am OK if one slips through with their high fees.
I have upgraded my Paypal to Paypal Pro. The customer doesn't haven to leave my website and can use Visa, Master Card, Amer Express, and Discover or Paypal. The customer doesn't know that they are using Paypal unless they choose the express option. The fees are low + $30 a month which includes virtual terminal.

I would advise against PayPal.

The problem with PayPal is that your money is deposited in to a PayPal account (which they control) and this leaves you powerless if they decide to do a fraud check or security check on your account. They can then freeze your funds for 30,60, 90 days or even longer as well as reverse funds back out of your checking account on a whim. You have no recourse or control and appeals fall on deaf ears.

While you can have a PayPal account, it is not a bank account and therefore they do not need to follow federal banking regulations. This allows them to freeze your funds on a whim and without explanation or answering to anyone else. Once again, you have no recourse or control and appeals fall on deaf ears.

I got burned 1 time by PayPal years ago and never again and want to do everything I can to help people avoid the same issues.

Paypal froze around $4000 of my money for 90 days. Capital is a small businesses lifeblood. Go get a merchant account. I have not hap problems since. Oh, and paypal will make it impossible for you to defend yourself if some denies a charge. If your shipping a physical product then you had better have a tracking number or say goodbye that that money.

you can also check liberty reserve, it may be cheaper in transaction fees.