When you are selling your own products online one of the main aspects you have to look at is how do you receive payments for your products. Paypal, Paymate and 2Checkout are three of the cheapest options on the Internet, but which one is better for you.
Overall all of these 3 Credit Card payment processors are good, but let’s take a look at the comparison on services they provide and then you can have a better idea on which one is best for you.
|Fees on Purchases||Monthly Fees||Send Money Fees||Buyer Protection||Multiple Currencies||Setup Fee||Free to Open|
|PayPal||1.1 to 3.4 % + 0.30 per transaction||None||None||Yes||Yes about 30 currencies||None||Yes|
|Paymate||1.7 to 3.9%||0 to 33 AUD||Yes||Yes||Yes||None||Yes|
|2Checkout||5.5% + 0.45 US per transaction||None||None||Yes but with Fees to Seller||Yes||$49||No $49 one time fee|
Paypal VS Paymate or 2Checkout
As you can see above PayPal seems to be a be cheaper option overall and lower commission rate. All these credit card processors are easily integrated into many platforms including the famous OsCommerce script. Waiting for your account to be set up with 2checkout is probably one of there biggest negatives as well as the setup fee. Also 2Checkout commission fees are basically double the amount of both Paypal and Paymate. Sorry 2Checkout, Paypal and Paymate seem to be winning with that.
PayPal VS Paymate
One similarity with PayPal and Paymate was that the fees both got lower with higher monthly sales amounts, except Paymate charged a monthly fee that progressed on how many sales you got. Whereas the commission structure with Paypal got lower and lower depending on your monthly sales amount and still no monthly fees. So overall PayPal wins there against Paymate.
2Checkout VS PayPal or Paymate
I notice a lot of webmasters prefer the look with 2Checkout but overall i think a lower product price is more alluring to customers. This lower price can be passed on by the lower commission of Paypal or Paymate. I mean if you can charge 3 % less on postage and product prices then you can be more competitive against your competitors. The main difference between 2Checkout and the Paypal or Paymate is that they are a straight out processor, they don’t have a member base like Paypal and Paymate. Meaning that if you are a Paypal or Paymate member you can receive payments from other Paypal or Paymate members as well as from Credit Cards. Good Bonus i think having an extra option but some webmasters can believe it lowers sales.
Paypal VS Paymate VS 2Checkout Conclusion
Overall between the three Paypal and Paymate came the closest in comparison but in the end Paypal appeared to be the better choice. 2Checkout lost the battle after the first summary against these two except for the fact that if the customer wants a straight out transaction without the option of membership. The 2Checkout payment processor has this straight out feature to pay by Credit Card, but unfortunately at 5.5% commission i think that’s there biggest downfall.
Personally my favourite credit card processor is Paypal because not only do they have the cheapest commission fee on purchases but also you can take money out of your Paypal account whenever you want to your linked bank account. If you are interested in trying Paypal out as an option for your Credit Card processing or signing up for Paypal then Click Here.