$49 to register, does 2checkout worth of it?

Discussion in 'Payment Processing' started by mhmtozek, Oct 15, 2008.

  1. #1
    Hi,

    I have an e-junkie account that is connected to my paypal and I sell digital products this way. Recently I've also applied for clickbank account to integrate it with my e-junkie.

    I also wanted to go for 2checkout.com but the strange thing is that 2checkout.com requires 49 dollars to sign up. Does anyway know why do they charge it? Do they offer something that others doesn't offer? Is it really worth to pay and go for it?
     
    mhmtozek, Oct 15, 2008 IP
  2. shutterslide

    shutterslide Guest

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    #2
    We used to use 2checkout and paid the fee back in the days when PayPal required users to sign up for a PayPal account to make a purchase. 2checkout offerered the advantage of a checkout process more like you would expect if you had a merchant account. Now PayPal allows credit card payments without signing up I don't really see the bonus of 2checkout and not sure it is worth the money. There merchant fees always used to be higher than PayPal as well.
     
    shutterslide, Oct 15, 2008 IP
  3. eddy2099

    eddy2099 Peon

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    #3
    I believe that 2checkout charges a moderate fee for a few reasons, first to subsidize the expenses involved in maintaining an account for you (ie not waste their time if you do not generate enough income for them month to month), second to ensure that you are real since you need to use your credit card (sort of a verification) and thirdly to prevent people from just signing up numerous accounts for one reason or another (people tend to think twice if they need to pay).

    When you are in business, $49 is a small fee and as you know, this world especially the business world does not operate as a charity, nothing is free and someone has to pay for expenses.
     
    eddy2099, Oct 15, 2008 IP
  4. mhmtozek

    mhmtozek Peon

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    #4
    Thanks for your comment shutterslide. The only reason why I thought for going with 2checkout was just because Paypal is not accepting credit card payments for number of countries. That is why I signed up for Clickbank account along with the Paypal

    I agree with you Eddy, however, isn't $49 a big number to get as registration fee? If they wanted to prevent spam registrations even $5 registration fee would be enough to stop those who are just going to open an account and not to use it later.

    I am curious, do they also get a commission from my sales are that $49. If not, then the registration fee is reasonable.
     
    mhmtozek, Oct 15, 2008 IP
  5. eddy2099

    eddy2099 Peon

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    #5
    They do deduct something like 5.5% + 45cents per transaction to cover the cost of processing the order which is quite low as far as industrial standard goes.

    They would be charged something like 2 to 3% per transaction by their bank.
     
    eddy2099, Oct 15, 2008 IP
  6. mhmtozek

    mhmtozek Peon

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    #6
    Thanks eddy, clickbank seems to keep my approval requests on hold. I don't want each time to wait 3 to five days for adding a new product into my store.

    I guess I will give a try to 2chekcout.com, thanks for the valuable comment
     
    mhmtozek, Oct 16, 2008 IP
  7. Disguised

    Disguised Notable Member

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    #7
    I have been using 2CheckOut for a while now and I would say it's really worth it. You pay a mere $49 sign up fee and you get a top quality service.
     
    Disguised, Oct 16, 2008 IP
  8. mhmtozek

    mhmtozek Peon

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    #8
    Thanks Disquised, I guess I should really switch from paypal to 2checkout rather than going with both :)
     
    mhmtozek, Oct 16, 2008 IP