PayPal & 2CheckOut – payment giants. The choice is only yours

Anyone who has ever bought anything through the Internet had to choose a payment processor. All these customers had questions on the differences between those on a website. Concerns on security and velocity of a transaction are also common. Most of the users tend to follow the recommendations of those relatives or friends who already use some of the electronic payment methods.

However suppliers of products and services take the issue of choice most attentively. In this case many factors should be taken into a deep consideration, for instance, credibility of a certain gateway in a country of the key audience.

Clear understanding of something that the market could offer and opportunity to choose the most effective mean could help to define the best case scenario for each side.

Organizational structure

One of the major points that is needed to be understood is the basic difference between two payment systems – PayPal and 2CheckOut.

You can imagine PayPal as an electronic wallet attached to a chosen e-mail address. As every wallet it may have positive balance with which you make payments. However PayPal offers an opportunity to conduct transactions from other means of payment, for example, credit or debit cards. But you do need to remember that every user must obey internal regulations that are presented at PayPal’s public offer.

On the other hand, 2CheckOut provides its services more like as a “transparent link” between a buyer and a seller where the former can use a bank card. At some point it brings a certain convenience for a buyer in the matter of saved time for starting an account and passing a verification process. As for the legal part of relationships between a seller and a buyer, it is mostly built on Card Organization Rules:

We provide processing services with respect to debit and credit card transactions including all types of VISA and MasterCard cards, and American Express, PayPal, JCB, Discover, Diners Club (the “Card Organizations”) and PIN Debit card transactions, as well as anti-fraud services and support (“Services”).

Each Card Organization has developed Card Organization Rules that outlines the procedures, responsibilities, and allocation of risk for this process. International Seller is bound by Card Organization Rules. The Card Organization Rules and Applicable Law give Cardholders and Issuers certain rights to dispute transactions long after payment has been made.

Paired relationships, such as “seller – 2CheckOut” or “buyer – 2CheckOut”, are regulated by Terms of Use and International Seller Services Agreement.

How to become a member?

In case you are interested in operating on-line, you would like to know how to become a member of these systems.

PayPal offers quite an easy way to register. One should choose the country he is from, the language he speaks and a future use of the account, as it is shown in the picture below:

First step of creating an account

After clicking “Get Started”, a user would be transferred to the page where one should enter the personal information which is needed to identify the account unambiguously. The information needed to register an account for personal use is presented below:

Table of personal information

However, as it was mentioned earlier, one may register an account for business purposes. The only difference from the personal one is the requirement of company details.

As PayPal is eligible for performing legal transactions, only truthful information reckons:

You authorize PayPal, directly or through third parties, to make any inquiries we consider necessary to validate your identity. This may include asking you for further information, requiring you to provide your date of birth, a taxpayer identification number and other information that will allow us to reasonably identify you, requiring you to take steps to confirm ownership of your email address or financial instruments, ordering a credit report, or verifying your Information against third party databases or through other sources. We may also ask to see your driver’s license or other identifying documents at any time. If you use certain PayPal Services, federal law requires that PayPal verify some of your Information. PayPal reserves the right to close, suspend, or limit access to your Account and/or the PayPal Services in the event we are unable to obtain or verify this Information.

Another step of creating an account would be confirming the used e-mail. The procedure is regular – the letter is sent to your e-mail address with a confirmation link. Once you follow it, the address is confirmed.

As PayPal’s regulations differ from country to country, a source of a payment differs too: one can use PayPal balance or a bank card. A bank card should also be verified for the use.

At the same time, a way to register an account with 2CheckOut is a bit alike. Previously, one needed to pay a registration fee in the amount of 49.00 USD. Currently however there is an opportunity to get it for free, as a special promotion code is applied once a user is signed in.

The payment processor also requires detailed information on the company including the sale rate and average amount per transaction.

As the payment processor mostly specializes in e-commerce, a company needs to have its web-site with clearly defined refund policy which should also be specified while applying.

One more point that should be stressed here is that a 2CheckOut account suits for organizations but not individuals on the contrary with PayPal.

Verify your account – be transparent

Nowadays the Internet has taken the biggest share at a current world market. And reputation of a certain company is an essential criterion on a level with its credibility. As the result a third party is needed to guaranty that a company is reliable and fits regulations of a payment system.

The verification process for a PayPal account is based on verifying one’s bank account or debit/credit card.

• In order to star verification “Get Verified” link should be clicked on the Overview page.
• Next step would be choosing the source of payments, such as bank account or debit/credit card.
• After that the system would ask to enter vital information of a bank card, for example.
• Doing all that would allow PayPal to place two small charges on one’s bank card or small deposits, if there is an intention to use a bank account.
• Once they appear on a card statement, they are needed to be entered at the very same “Get Verified” link.

• And the final verification spent is receiving a call from PayPal staff and answering a couple of simple questions. The made charges would also be credited to an account holder.

As for 2CheckOut verification process, it begins with them looking through a company’s website for their internal requirements, for example, refund policy. In case sufficient information is failed to be found, an owner could be asked to add the missing piece. A company ought to remember that all the changes and verification in general is called to increase a number of satisfied buyers and reduce the amount of refunds.

Another important part of verification process is a call performed by 2CheckOut team. The call can be addressed either to the account holder or to a buyer directly.

The check-up procedure also demands that no sum could be withdrawn with verification being completed.

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