# Operating a business - few quick questions



## DrakeA (Nov 16, 2014)

Hello all.

I had a few questions in running a simple online business (hosting with cPanel). I used to work with a company(whom I won't name), but they had a lot of paypal issues (people charged back, etc), is there a good alternative for PayPal to accept(besides crypto currencies).

Next, what locations would you like to see?

Thanks,

Drake


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## drmike (Nov 16, 2014)

This industry banks on PayPal lots.  You don't have it, you are  missing a lot of opportunities.  I only buy hosting and related services with PayPal.

Chargebacks happen and there isn't a big problem with such in honest business.   Real companies deal with customers and avoid unnecessary chargebacks. Others have no refund policies that are chilling and do wonders.  They screw customers all day, but still maintain active PayPal account.

If you want a good clearer that takes PayPal also:

https://www.2checkout.com/


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## DrakeA (Nov 16, 2014)

drmike said:


> This industry banks on PayPal lots.  You don't have it, you are  missing a lot of opportunities.  I only buy hosting and related services with PayPal.
> 
> Chargebacks happen and there isn't a big problem with such in honest business.   Real companies deal with customers and avoid unnecessary chargebacks. Others have no refund policies that are chilling and do wonders.  They screw customers all day, but still maintain active PayPal account.
> 
> ...


Understood, I just saw the effect it took on the company I used to work for(they got limited on their business PayPal because there was 2 chargebacks because they had a no-refund policy), so trying to avoid that.


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## jamaica (Nov 16, 2014)

2checkout is super-expensive on small transactions.


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## DamienSB (Nov 16, 2014)

jamaica said:


> 2checkout is super-expensive on small transactions.


2checkout has the same fee rates as paypal.


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## Munzy (Nov 16, 2014)

please no, please no, no. no, for the lord our saviour no!


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## Licensecart (Nov 16, 2014)

DamienSB said:


> 2checkout has the same fee rates as paypal.


... and 2co is the worse company to do business with, they'll close your account for a cancellation, not a refund nor chargeback a cancellation. Stripe is the best non paypal.


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## IntegralHost (Nov 16, 2014)

I recommend 2checkout


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## Licensecart (Nov 16, 2014)

IntegralHost said:


> I recommend 2checkout


Good luck to you, I wonder how long that lasts before your added to the big list of hosts / providers: http://www.webhostingtalk.com/showthread.php?t=1254029


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## DamienSB (Nov 16, 2014)

I have used 2checkout for two years and never have had an issue. I've only ever gotten two chargebacks with 2co in the last two years.


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## Coastercraze (Nov 16, 2014)

Yeah, 2Checkout is no good. They'll screw you big time. All it takes is 1 and you're out with them holding your money for 90 days.

Stripe is much better.


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## tragic (Nov 16, 2014)

Check Braintree, they've been incredibly helpful migrating from Stripe and offer great support. I took advantage of their no-fee for your first $50,000. Unsure if they still have that promotion going on though.


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## DomainBop (Nov 16, 2014)

*12 posts and nobody has mentioned the obvious solution of getting a real merchant account...*



Munzy said:


> please no, please no, no. no, for the lord our saviour no!


My usual response when someone says they're thinking of starting a business is to post this helpful link  http://www.sba.gov/writing-business-plan 



Licensecart said:


> ... and 2co is the worse company to do business with, they'll close your account for a cancellation, not a refund nor chargeback a cancellation. Stripe is the best non paypal.


I just issued $1200 in refunds tonight because a buyer paid 3 times for one order (he accidentally hit the submit button 3 times).  I wonder what 2CO's response to large refunds issued due to buyer error would be...

Someone must like 2CO though since they raided $60 million in VC funding earlier this year:

http://www.bizjournals.com/columbus/blog/2014/04/2checkout-raises-60m-from-vc-firms-for-expansion.html?page=all


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## AnthonySmith (Nov 17, 2014)

Most of the time paypal only becomes an issue when you are sloppy in what orders you accept, I believe 2co rates are actually higher that PP but that may have changed.

I would suggest if you want to enter the industry unless you want to offer something unique that will make using you worth the effort for people not to use the industry standard for payments you simply have to take paypal.


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## TurnkeyInternet (Nov 17, 2014)

Skrill / MoneyBookers is another option especially if you are dealing with 'the type of businesses/clients' that do charge backups a lot (i.e. maybe your niche is selling 'bullet proof' hosting, vpn, free-services, etc and then you will attract more people with stolen identities/credit cards to cause charge backs).

If you want to avoid charge back issues

#1) treat your customer well, offer a reasonable refund policy

#2) screen all new users (when starting out you should be able to spend the time to call each, or at least do more than a minimal maxmind 'logic' gut check on each order.  If needed request photo ID be scanned and sent to you and verify it off the address details they provided at sign up.

#3) credit card direct merchant access gives you more fraud 'screening' data live to you to view, if you grow beyond a few $1,000 a month it makes sense to expand beyond just paypal for accepting payments regardless of charge back issues, its going to make you more professional in the eyes of some clients (and lead to more sales)

hope that helps - good luck on the business.


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## TekStorm - Walter (Nov 19, 2014)

Hey check out stripeXS, they have recently partnered with pivotal payments, check it out maybe they will have what you are looking for.


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## TierNet (Dec 2, 2014)

Stripe is indeed a good alternative.. also check out Authorize.net


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