Hi, Any of guys using any reliable payment processor like 2CO, who can process payments from both major credit/debit cards and paypal at the same time? One of my friend is starting a gift card site and I invested some money on it. I would tell him to use 2CO but it has outrageous fees. While the industry standard is 2.9%+30 cents, 2CO charge is 3.99%+45 cents and they also have a monthly fee of $5.99. I see no point in paying this much fess for such low volume transactions we are about to do. Any suggestion will be appreciated.
Hey there! While our fees appear higher, it includes everything so at the end of the day it is competitive. Also keeps it simple because there are no extra fees (no gateway, merchant, cancellation, etc.). Depending on the price per transaction it might not make sense but I would encourage talking to someone here who can answer any questions you have to determine if it is a good solution for you and your friend or not. If you want to reach out my email is thanks!
I have also been looking into a way to except online credit card payments for my website. I signed up with 2checkout for a free trial but did have yet to make any final decision. Since my site is based on the concept of "Cheap Advertising" I have offers that start around $1 so a .45 cent base fee would take up much of a small transaction such as a $1 purchase by one of my advertisers. I have already priced everything for a 30 base fee and Paypals fee but the extra 15 cents would really hurt me since I have so many $1 and $2 sales. The only other option that I have come across as of yet would be Google Checkout which has 2.9%+30 cents per transaction and better depending on sales volume. The more you sell the less you pay per transaction as a percent. A $10 chargeback policy is in effect at Google checkout which is also something to consider.
Thanks for the reply guys. Yes I considered using google checkout...but as I said I'm looking for something that process both direct card payments and credit card payments. Other than that I believe google checkout is very intuitive and the pricing totally fair.
I just want to warn people about 2checkout. Their fraud detection is weak imho so you could get a lot of charge backs if you are not careful. My impression is that they are more interested in volume than verification so it's mostly automated and the automation is not very intelligent. The fraudsters are probably aware of this and target sellers that use 2checkout. When you phone 2co after a charge back they basically tell you that it's not their problem and the onus is on you to do your own checks which is detailed in the fine print on paragraph 20 on page 54 sort of thing. Just the other day I had a transaction approved from someone using the well known name of a fictional character. A name that would be obvious to a human as likely fraud and worth further investigation. If that wasn't enough their IP was from somewhere else on the other side of the planet which traced back to a proxy service and their email was a generic online email account. That is just one example. I have a few others that happened recently. I also use PayPal and one thing I can say about them is that I have never had a fraudulent transaction and charge back. That only started happening when I signed up for 2checkout. 2checkout doesn't seem to care because if the bank issues a charge back they just pass that on to you and charge you an additional penalty on top of that which adds insult to injury. For the amount they charge for their service I think they could do better. Having said that, their customer service is not bad all things considering. When I phone their 800 number about these things I can get a human relatively quickly and they usually seem competent and are able to deal with my questions in a timely manner. Even if the answers are not what I want to hear.
I've switched to stripe.com. So far quite happy. Their rates are much lower. Equivalent to paypal rates which is about the best I have found for credit card processing without any monthly fees. They are only available in the US and Canada right now but are expanding.
Ya..I'm aware of Stripe. Its been getting a lot of traction lately among the developer community. I desperately wish they'll expand to other countries soon.