I recently started a hosting business and I'm using 2Checkout for payments. There are a lot of problems with 2Checkout.
My business currently has a merchant account. I had this merchant account for several years. It is not required for me to swipe the card with this merchant account.
When setting up this hosting business, I was concerned about high chargebacks for fraud. With my existing merchant account, I only had 2 chargebacks in the past 5 years. I was concerned that I may get flooded with chargebacks in the hosting business, so that is why I selected 2Checkout.
Is it possible to use my existing merchant account and have some service, similiar to 2Checkout, do all of the fraud protection for me?
With the merchant account - what is it used for? If you have applied for a merchant account & told the processor it is for - say selling school supplies online - then no. When a merchant account is issued to a company, it is issued for a specific reason. You cannot tell the processor that you will be selling school supplies & then use it to sell pet products.
You should consider opening up a second merchant account just for that purpose. Why? Because you are now creating a new business - catering to a new set of clients.
If you do use your current merchant account, you need to contact your processor & ask them if there is anything that you need to do. Nothing will raise flasg more at Visa / MasterCad for someone to call in to their Visa card to say they want their money back because the dog bone they bought from you made their dog sick. Visa looks - sees you have been issued a merchant account for school supplies. This will raise the flags, Visa will suspend your account, maybe even terminate you.
To maybe give you an example - we did just set up a hosting company - they were listed as Computer & Data Process. But hosting also has a higher chargeback ratio. Your chargeback ratio for your current merchant account is low - I would say do not risk that one.
To give you another example, someone has a merchant account - to sell shoes. But his customers are dealers. He wholesales to these people. Now he wants to sell to the general public. I would recommend another merchant account so that he does not jeopardize his main merchant account.