2Checkout vs Paypal

If you’re looking for an easy payment processing solution for a website or business, then 2Checkout and PayPal are two popular options to consider. 2Checkout is more of a global payment platform that allows users to create a customized mobile payment experience, while PayPal is more of an e-commerce services that allows consumers to purchase items, send money, or accept payments without revealing key financial details.

In the 2Checkout vs PayPal debate, there are some key details that need to be compared to one another to determine which one might be right for you.

How Much Does It Cost to Use?

2Checkout offers users two pricing rates that can be implemented whenever a successful transaction is completed. Most users are going to end up using the simple pricing plan, which is 2.9% of the transaction and an additional 30 cents on top of that. International rates will vary from this base US rate.

Volume pricing is also available from 2Checkout that is lower than this, but a site must qualify for these lower rates. Your business must process more than $50,000 per month in order to potentially qualify for a lower rate.

PayPal also charges 2.9% of the transaction whenever goods or services are paid for by a consumer. International sales have a fixed 3.9% transaction fee, plus a fixed fee based on the currency that was received. Nonprofits qualify for a 2.2% plus 30 cent transaction fee.

If you use the mobile payment system that PayPal offers, then the transaction fee is lowered to 2.7% when the card is swiped. If the transaction is manually entered on PayPal Here card readers, then the transaction fee is 3.5% plus 15 cents.

Both programs do not pass along the charges to the consumer. It is free to make a purchase with both 2Checkout and PayPal, plus it is free to send money to someone on PayPal.


When Can It Be Used?

2Checkout is a traditional payment processing opportunity. It can be integrated on private websites and used at mobile locations. This makes it suitable for SMBs and larger enterprises. It can also be used with virtually all of the shopping cart systems that are available to e-commerce sites right now.

PayPal has less flexibility when it comes to shopping cart integration, but more flexibility when it comes to the third-party platforms that some businesses use. Freelancers who use eBay or Fiverr, for example, can receive payments into a PayPal account and sometimes have reduced fees as well. Fiverr users who withdraw more than $100 only pay a $1 flat processing fee to access their money.

PayPal also has pre-built integrations as a point-of-sale solution, allowing vendors of any size to incorporate sales buttons onto any web page under their direct control.

What Payment Methods Are Accepted?

Both 2Checkout and PayPal accept a large number of credit cards. This includes Visa, MasterCard, American Express, Discover, Diner’s Club, and JCB. Debit cards with the Visa or MasterCard logo are also accepted, though the transaction will be treated as a credit card instead of a debit card transaction.

PayPal also accepts EnRoute credit cards that may still be in use from Air Canada.

2Checkout accepts PayPal as a payment method.

How Do I Withdraw Money?

2Checkout uses a reloadable MasterCard from Payoneer that allows you to access the funds that are in your account. Depending on the country where your primary bank account is located, you may also have additional money access options, including electronic funds transfers in local currencies with a $10 USD minimum. Wire transfers are also supported with fees of up to $20 with a minimum $300 USD transfer.

PayPal offers business accounts a MasterCard-branded debit card that can directly access funds that are deposited in the account. Qualifying transactions with the debit card offer 1% cash back and you can set specific withdrawal limits for purchases or cash access at ATMs, up to $3,000 and $400 respectively for most accounts. Users can also initiate an electronic cash transfer to a verified bank account. Only $1 is required to initiate a withdrawal. Requests for a transfer to a checking account are usually completed by the end of the next business day.

PayPal also offers users the opportunity to request a check from their funds. It takes up to 14 days to receive a check and up to 6 weeks for customers outside of the United States, but a fee of just $1.50 applies to this option.

Both 2Checkout and PayPal make it easy to access your cash. Compare each opportunity to the needs you have to select the best option.

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