I am trying to understand how 2checkout.com invoicing works because we have been using them.
From the looks of it, its not an ISO/MSP since it accepts Non-US customers which no other Payment Gateway / Processor in the USA accepts.
1) So its not clear how does it create a merchant account ?
2) It creates an invoice for every purchase done through 2checkout.com (which paypal doesnt create). Does it mean that 2CO is actually showing in its books, THAT its purchasing from the merchants and selling to the buyer. Thus making it a reseller of goods and services and not a payment processor by accounting standards. Or is it not this way ?
3) To support the 2nd point above, I was intrigued by the fact that Inc.com showed their revenues at $214 Million in 2008 (http://www.inc.com/profile/2checkoutcom) which is nearly impossible for 2checkout to make if they showed just 5% of all payments as their revenues. For 2checkout.com to make $214 Million in revenues, they would need to process more than $4.3 billion every year which seems to be a little impossible. Another company called Braintree payments (http://www.inc.com/profile/braintree) reports $9.9 million in revenues in 2011 which I believe is correct as 3-4% of all payments they do.
So from all this am I correct in assuming that they are not a payment processor and rather a purchaser and seller of goods and services ON PAPER ?
It would be great if someone could shed some light on this including a 2CO representative.
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Fionix seems to have it down. Companies like 2CO, CCbill, and even Paypal, are able to let your process payments under their Merchant ID #. Because of this, their rules and regulations are a lot tougher, as well as fee's tend to be considerably higher. Although, if you can't get credit card processing anywhere else then at least you have a last resort. I've been in merchant services for many years and am extremely familiar with the convolusion that is my industry. I work with several banks here in the U.S. that have been able to approve businesses, that I thought would never have a shot of getting a merchant account, left and right.<<snipped>>
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Last edited by anon-e-mouse; 12-03-2013 at 06:32 PM.