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Andy Brice
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Patrick McKenzie
Bingo Card Creator

2Checkout approval/support

Anyone tried using 2Checkout? I've registered there to accept payments for my new project, but they ask me to send them processing statements for the last 3 months. This is ridiculous as this is a new business and there were no sales yet... therefore no processing statements. I could send them statements from my other businesses, but I don't feel comfortable doing so.

When I ask them about it, the only response I get is the same copy-paste e-mail asking for that $500 statement:

"In order to approve your application, we request that you please provide either scanned or PDF files of your processing statements for the last three months showing sales history of no less than $500."

Does it mean they don't read e-mails at all, and this is the kind of support I'd get when I become a seller?

I'm thinking to give up on them and use PayPal or something else instead...
Kuzmitskiy Dmitry Send private email
Thursday, August 15, 2013
You have lots of options for payment processors.  2Checkout's main sales pitch is PayPal level fees with a simpler, more localized payment experience.  They also advertise a simpler pricing structure.  The question is, how important is any of this to a software vendor?

Unless your prices for software fluctuate all over the place, a simpler pricing structure from your payment processor adds no value to your business.  If you can't figure out tiered pricing, maybe you should become a plumber.

Lots of payment processors offer a simple customized checkout process in several languages and a couple of dozen currencies.  2Checkout has lower transaction fees than most, and that is probably why they have lasted for 13 years and become a "multi-million dollar business."  Cheaper means lower margins for them, so they have to control their costs.  Only accepting customers that do a minimum level of business, and providing minimal customer service are ways to control costs.  However that means that you receive  a less valuable level of service in return for lower fees.

If your margins are relatively high (and if your margin for software isn't at least 25%, you are doing something wrong), and using a payment processor with a higher level of service results in more sales, you don't need to worry about finding the cheapest payment processor.  This topic of cheaper payment processors comes up here quite often, and price should be the least important criteria for choosing a payment processor.  Assuming a profit margin of 30% before transaction costs, you only need to increase your net sales volume by 12% to justify using a payment processor that charges 5.9% instead of 2.9%. 

It's the same rationale for restaurants to accept American Express cards for payment, even though AMEX's transaction fees are higher.  With any kind of high margin product, once you have a customer who is willing to pay you, you don't want to lose that customer because you are concerned about saving a few percent in transaction fees.  And it makes you look like a lousy businessperson who won't last very long.
Howard Ness Send private email
Friday, August 16, 2013
I wasn't talking about their fees at all, I'm not sure why you brought up this topic.

I was talking about approval process and lack of communication.

They ask for a processing statements for the last 3 months - how am I supposed to send those? This is a new business, it was created 2 weeks ago...

And I can't even talk them - all I get is a robot answer always telling the same thing.

So the question is - anyone tried to use 2CO for a new business? Who already use it - is their customer support OK?

The project I'm trying to use it for: http://bit.ly/1dcvjhD
Kuzmitskiy Dmitry Send private email
Friday, August 16, 2013
Why ask anyone else if their customer support is OK, when your own experience show it certainly isn't?

Reluctantlyregistered Send private email
Friday, August 16, 2013
Using 2CheckOut (mainly for credit/debit cards) as well as Paypal. Started with 2CheckOut on February, they didn't ask for any statement (maybe because I'm in US). Don't know about their support since till date didn't have any reason to check it.
Hesitating... Send private email
Friday, August 16, 2013
Honestly if that's the level of communication you're getting during what I consider their sales process I would drop out right now.
Jonathan Matthews Send private email
Friday, August 16, 2013
I use them on a web service I run. I'm not happy with them. Too expensive.

Last I checked they had a broken process for renewing credit cards. I haven't checked to see if they've fixed it lately, since I now intervene manually every time a subscription needs a cc update. I'm afraid my recurring subscription customers (which are expensive for me to attract) will walk away if I don't.

This guy nailed it, though:

To their credit, they have an API that works pretty well, and when you sell your web service you can transfer the existing subscriptions to the new buyer (paypal makes that a real pita).
Darren Send private email
Friday, August 16, 2013
"I wasn't talking about their fees at all, I'm not sure why you brought up this topic"
Weren't lower fees the reason you decided to use 2Checkout?  They are a relatively small player in a crowded market, with little else to differentiate themselves from the competition.
Howard Ness Send private email
Friday, August 16, 2013
@Darren - thanks for the link, looks like they do have problems with the communication.

@Howard - no, fees are not the reason I wanted to use their services. I'm using WHMCS, it has modules to easily integrate with payment processors, including 2co.  I saw several businesses used 2co and decided to try it too...

Thanks everyone for answers. I decided to use paypal instead.
Kuzmitskiy Dmitry Send private email
Sunday, August 18, 2013

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