Paypal, 2Checkout, Ebay, Amazon, Online Marketing Allegory

Typical debit card transaction machine, branded to McDonalds.f you are using the Internet as a marketing channel, then you must understand this allegory: “Paypal and 2Checkout are to Ebay and Amazon like NCR and VeriFone are to Walmart and Target.”

Just as most bricks and mortar merchants understand the cash register as the point of sale machine, most online merchants understand the importance of having a reliable online payment processor. If you are just starting out marketing online, Paypal is the easiest to setup. In addition, opening an account at Paypal is free.

Once you have a Paypal account, you can receive payments and make payments. Paypal allows you to transact via debit cards and via credit cards. Their fees are typically higher than you’d expect from a direct merchant account. However, some individuals and small businesses may not be ready to open a merchant account.

The other choice that you have for online payment processing that includes credit card processing is 2Checkout or 2CO. This company handles both physical and digital goods. 2Checkout handles one time payments and recurring payments. Their fee structure is comparable to Paypal. One main difference between the two companies is that 2Checkout is not as “fidgety” about sudden transaction volume as Paypal. For example, if you normally process 5-15 orders per day on Paypal and experience a surge to 300 orders per day, Paypal will shut your account down without warning. They do this because it is their way of protecting against fraud.

This presents a problem for your online business if Paypal were your only way to accept payments. 2Checkout, on the other hand, has a different fraud prevention system. They check for each transaction against fraud as they come in. As far as I know, they don’t shut you down without warning.

The other difference between Paypal and 2CO is that the later charges a $49.95 sign-up fee per account or website. If you sell your goods on multiple websites, this fee could add up. But there is good news on this front.

This coming Tuesday, May 6th, 2Checkout is allowing you sign-up for an account for free. You will save $49.95. If you have considered trying 2CO in the past but was deterred by their sign-up fee, here is your chance.

Go here to sign-up:

http://www.alextran.com/2checkout

Oh, by the way, 2Checkout also accepts Paypal.

Copyright © Alex Tran