Best Alternatives To Paypal

Paypal has been a force in the online payment game for a long time.  However, it is not the only option for payment processing and peer-to-peer transactions.  If you look at the big picture, Paypal is actually a rather limited service that lacks worldwide usability and personalized customer service.  While the competition generally still has a long way to go to get to the same level of acceptance as Paypal in the US, some online payment services are very attractive alternatives for people who are hampered by Paypal’s limitations and lack of personalized customer service.

If you are one of those people – either an online merchant or just someone who wants the convenience of sending money easily over the internet – here are some Paypal alternatives.

2Checkout is a major online payment processing service that works world-wide.  It is an obvious Paypal alternative for online retailers.  It charges a bit more than Paypal for each transaction: 5.5% plus a $0.45 up front fee.  However, 2Checkout takes care of all fraud checking and security issues and has attracted about 50,000 vendors since its inception.  It also charges a one time $49 set up fee for new vendors.  So this is obviously a choice for established online retailers or people who want to grow their business.  Those looking to simply make peer-to-peer payments would probably be better off looking elsewhere.

AlertPay is an upstart payment processor that offers a wide range of services including payment processing for credit cards, wire transfers, checks, recurring payments, and payments from e-wallets.  It charges fees that range from 2.5% to 3.9% (depending on how much service that the client requires).  AlertPay is focused on serving less-mainstream retailers and online service providers .  It can also better serve clients outside the US who are not given the same level of service and options when they work with Paypal.  AlertPay has automated fraud tracking software and also live employees who help to ensure that transactions are secure and fraud free.  For those seeking a Paypal alternative that has one of Paypal’s most attractive features: sending money by email, AlertPay is a good choice.

Digital River is an e-commerce service provider that has adopted the unique approach of working with customers individually rather than offering them blanket services that mimic Paypal’s one-size-fits-all approach.  Digital River offers everything from high end services to basic shopping carts for online retailers and service providers.  The company does not charge any set up costs and takes payment depending on performance and the number of transactions.  The most basic level of service costs $1per transaction plus 2.9% of the transaction’s overall price. People who are frustrated with Paypal’s non-personalized customer service and lack of flexibility when it comes to unique e-commerce needs might want to look to Digital River to provide their online business with payment processing services.

For online commerce that is focused on digital goods and download-ables, eJunkie is a good Paypal alternative.  This company specializes in shopping carts but also in automatic delivery.  This means that people don’t have to physically send a download to the purchaser or deal with activation codes, etc.  The product is simply available for download automatically when the purchase is complete.  eJunkie  works for tangible goods as well.  Merchants can print labels, and eJunkie’s software will even suggest the optimum box size for sending the purchased goods to the buyer.  eJunkie works on a subscription basis.  The lowest level is $5 per month for up to 10 items sold (or $0.50 per item) a good price, especially for digital goods that may not have a very high price tag to begin with.

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