Which paypal account should I use for my startup web host business? I know I'll be hating all the $$$ they will taking from my small payments lol.
You cannot use a personal account for a web hosting business. You will need at least a premier or business account for that. If you charge very low then you should consider raising your fees so that you at least make some money for yourself or charge quarterly, half yearly or yearly payments. You pretty much cannot help it since most customers would be paying through credit card and paypal's bank would levy fees per transaction.
I would urge you to be careful when taking payment for web hosting through paypal, as web hosting is a service, if the buyer initiate a charge back, the seller is at a huge disadvantage. What are your targeted customers? If it is local bank transfers or cheques should be the safest way to go.
Could you please elaborate more on this? The thread starter is looking for low transaction fee, and I don't find why 2CO is better than Paypal Business/Premier. If you're talking about lower risk at the seller's (hosting provider) point of view, 2CO has its risk as well. For instance, you have to ensure that you monitor and check every order carefully because you will get higher fraud order with 2CO than Paypal, with those stolen cards out there. 2CO charges a chargeback fee of $25/transaction with a forced refund. Thanks.
I might use both. I don't see the point of a chargeback, I would just suspend them. I guess it comes down to good record keeping.
For suspicious orders, give them a phone call before processing, just telling them that you are giving them a phone call will scare away the scammers .
My impression is that Paypal does not have in-house fraud detection apart from the verification process to determine if the transaction is real or not. 2Checkout from what I understand would have some in-house checks before the transaction is passed to the bank, it may from time-to-time call or email the customer to verify the transaction. The Chargeback fees are levied by the credit card bank so it is very much out of the control of 2checkout. Paypal however absorb part of the cost so the chargeback fees is just US$10/transaction. Paypal however would usually not fight any chargeback request. Cost of payment processing is one thing but it does not necessary mean the lower the cost the more secure the platform is. I used Paypal in the past to receive payment apart from my regular credit card processors but found that Paypal is more problematic as there is very few sales going through there but a lot more work to do with a much higher level of frauds. In the end, it all depends on your comfort level and the time of customers you deal with. If you are dealing with businesses then Paypal would not be professional enough. People who buy online would have a credit card and if they have a paypal account, they would also have a credit card too as it is needed to fund the account and verify it. 2Checkout supports almost all countries and that means is a larger marketplace.