I was looking for Paypal alternatives because you never know when Paypal is going to get a wild hair up its arse and freeze your account. In such a situation, it would be nice to have a second payment acceptance service on board so you could just sever the ties with Paypal at that point. I came across 2checkout.com and gave that the once over. It looked like a good deal until I checked out their fees.

Basic transaction fees are as advertised.

Signup/Account Establishment Fee:

There is a one-time set-up fee of $49.

Transaction Fees:

2CO applies a 5.5% commission on each transaction, plus a $0.45 charge per transaction.

Additional Penalties and Fees:

If you elect to pay the sign up fee via the check or PayPal method and we do not receive the funds, a manual adjustment can be made for the $49.00 plus a $25.00 manual processing fee from the current balance on the account.

Depending upon your funding selection, you can experience wire transfer costs. Additional fees can be applied for unsuccessful funding transfers, should the information provided to 2CO prove to be erroneous.

Should you elect to be paid by check, and fail to receive one via first-class mail, you can elect to pay applicable stop-payment fees in order to have the payment reissued in advance.

Chargeback (Bank Assisted Dispute) experience can also result in fees passed along to you. We strongly encourage all contracted suppliers to assist in combating credit card fraud in order to minimize or eliminate fees of this type. Fees can vary depending upon utilization experienced by various suppliers.

Ouch! $45 setup fee and 5.5% plus $0.45 on each transaction. Cha-ching!

That seems a little steep for me. I guess my alternatives are Clickbank and Amazon Honor System.

Clickbank fees are –

a one-time $49.95 activation charge that must be paid upon approval of your first product and I believe transaction charges similar to paypal’s but I’m not positive and am having trouble verifying that through Clickbank’s website.

Amazon Honor System fees are – $0.30 per transaction plus about 29% of total transaction price.

I could try to fire up Google Checkout but the last time I checked they had made that more and more complicated.

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