Im a little confused, many people hear have already claimed they will be leaving 2CO but no one has given them a chance. They have already stated clearly and publicly that current users who stay with them through the changes that are taking place will receive a .5% reduction on the transactions. I believe this is the right thing to do.
What does it mean to me and you?
Customers will receive the following on their credit card bill "Your DomainName.com thru 2CheckOut.com". This is a good thing as customers will no loger go "HUH? whats 2CheckOut.com? i didnt buy anything there?" when they receive there credit card bill. This is a good thing
It also means that apparently 2CO will be bringing out their own debit cards enabling you to transfer and use YOUR revenue. The debit cards im guessing will be like the ones paypal has already done. This is also a good thing.
Lower Chargeback fees? No offense 2CO but i will believe this when i see it. This is a GREAT thing if it actually happens.
What will change for me?
My understanding is not much? Before the chnages WE were the seller and 2CO earned the commision fro processing our transactions. Due to new credit card regulations (bull****) im pretty nsure 2CO can not operate in this way so they had to chnage so THEY became the sellers and WE became the commision earners.
So my understanding is .... effectively 2CO is taking the same amount of money as they usually do except there system is just chnaging so they can stay in business. So they can follow the new credit card rules?
Will i be leaving 2CO?
I have been inquiring about a merchant account at my bank for a little while even before the chnages. For the moment i will be sticking with them. Most online credit card processor companies will have to make similar chnages so i doubt you can escape.
This is just my understanding of the new chnages
Id like to hear yours?
FYI, hostcharge.com sent out an email to its customers a day or two ago as well. It mentioned the same technicality about hostcharge.com being the buyer and reseller of our services to the end customer. Sure. Whatever. Who cares as long as I get my money. I haven't heard anyone complain about the hostcharge email yet.
The one thing that will change is they hold a 5% reserve on all your money which translates to me as another way for some of my funds to get "lost" in the system somehow.. While I understand why they are doing it and so far they have been pretty good to us so I am going to see how it goes..
We're staying with 2checkout, the support is rather sloppy but they offer a good overall service and with the new ATM card solution as well as having our name on the bill from now on, how could we complain?
Now this is out of the way, maybe they can improve support and fixed/add features.
Originally posted by Monte Yep and if their front page is correct and they are processing nearly $40 mil a year that translates to $2 mill average held in reserve every 90 days. What is the interest on 2 mill per year?
Bet it covers that .5% reduction in fees
Have you ever tried to collect interest on a business checking account?
Banking regulations say that because the money is not ours, we can't collect interest on it.
I think people should stop getting in such a flap about the 5%, and remember it's only 5% for 90 days, not for the whole year.
Appologies if I misremember the details, but if it's 5% of each period's earnings that are added to the reserve, and some being released each period, on average this is 5% of 1/4 of the years earnings, and therefore 1.25% of the annual turnover.