2CheckOut - A Quick to Setup Credit Card Processor

Established in 1999, with headquarters at Ohio, 2CheckOut offers competitive rates for its services, excellent and simple transaction interface and has reliable fraud prevention systems in place with SSL encrypted network. Getting started with it is easier; approvals are fast with no hassles of long term contract. It has more than 300,000 suppliers. In terms of business, it has captured about 7% of the market share and is growing steadily.

Its Charges and Payment Policies

2CheckOut charges only one time set up fee of $49.00, besides a 5.5% commission on each transaction and a $0.45 charge per sale. These transaction charges can go up on some classes of products. Almost all types of services and products can be transacted using its services except for adult content, explosives, ammunition, tobacco, multi level marketing schemes etc.

Minimum release level of payments is $100 for cheque payment and $300 for wire transfer. Suppliers are paid weekly, subject to holding of reserve amount. Payouts are made with in 4 days of falling due.

2CheckOut accepts all major Master and Visa credit and debit cards, online checks and processes orders on its own secure server. It accepts multiple currencies U.S. Dollars, Canadian Dollars, Euros, Pounds Sterling, etc. and the amount can be converted to the local currency where the credit card was issued. However, conversion rates to some currencies are steep.

Safety Measures

As a processor it aims to be responsive to buyers and sellers complaints alike. 2CheckOut has established tested procedures for consumer protection. As per terms and conditions of the agreement, it allows refund and charge backs. A supplier undertakes to address all the complaints against him efficiently and in time bound manner. It also has maintained data of defaulting customers and often places limits on buying on some buyers as well. From sellers, it maintains a retains a sum of 5% for 90 days to cater for customer's complaints and this amount can go higher in case of regular defaulters. In case of charge backs, it assists supplier by providing any documentation that he may need. A sum of $14 is charged from supplier to cover its costs.

User Feedback

Though 2CheckOut has its own share of dissatisfied customers, their percentage is low. Sellers are happy over its lower transaction costs but expect its sales reporting to be better. 2CheckOut's set time is probably the quickest, about an hour, but customer complaints take a long time to redress. In many cases, its clients have experienced delayed payments from its side. It has rarely faced breakdown in service.

Credit card processing market is very sensitive to data protection and negative user feedback. In the credit card processor market, one thing that appears imminent that renewed focus on customer service and safety by existing players as PayPal and entry of new players in the market as Google and Microsoft would lead to some shakeup and consolidation. This would be worth watching.