Ecommerce Exchange

Ecommerce exchange software is a merchant account program to run credit card orders and print electronic checks. Ecommerce exchange costs about $300 and the only problem is that's not where the costs end, and that it's not needed anymore with processors like 2checkout.com (disclaimer: we use that service but we do not have any referral links in this review or elsewhere, we like the service and recommend it however, but only because we like it so much).

There's many programs like Ecommerce exchange, PcCharge, and so on to turn your computer into a virtual terminal instead of using a real credit card terminal like the ones from Zon, Nurit, and others that you see in stores. The problem is you need a merchant account to qualify, and good credit. The only benefit to having a merchant account is for the swipe rate. This is the rate charged by the merchant bank which can be as low as 2.2% or so for swiped transactions (where the customer is there with the card at your store). The problem is if you're an Internet business it will be higher, a non-swipe rate is more like %3 or so, which is up there with the 3rd party online services.

There's much more, I've had merchant accounts in the past and even worked for a company that provided them, so I can really tell you the ups and downs. There's usually other fees involved in a merchant account, like say you're charged 3 percent on a charge, if you issue a refund, they will usually charge another 3 percent on the refund, which adds up for high ticket items. Also if you have a chargeback they are basically impossible to win in most cases, merchant account companies will accept it no matter what you say, and if it goes to mediation with Visa/MC you're also probably just going to get a letter that they accepted the chargeback.

What are the advantages to a merchant account with software like Ecommerce exchange? Well not many, a slightly lower swipe rate might be good for tangible products that you ship out with a tracking number. But for most people who have an online business you're better off with 2checkout.com or Paypal. You see there's another cost/hassle factor involved. If you accept credit cards with your own terminal you're going to have to get an SSL certificate, and have it installed and change your order page for it so it's secure. Also if you move to another web host, you can't move the certificate, the host will not give you the key, and they cost $500 typically.

The advantage to 2checkout.com or paypal is they take care of that for you. 2checkout does better fraud order detection by far, but they charge 5% which is higher than Paypal which charges 3% of the transaction. Still, 2checkout makes it much easier for them to order with a simple credit card order form that's secure. With Paypal they do very little fraud checking and since they are so big, many hackers try to compromise these accounts so the chance of getting socked with a chargeback is higher. Also with Paypal if they are signing up for the first time it can be confusing. I've had people call that they couldn't figure out how to get verified and other problems.

Overall, I'd recommend 2checkout.com unless you have very high ticket prices and the extra 2 percent is going to make a big difference to you. Your own merchant software like Ecommerce exchange can be good but it's a lot more hassle and work, especially if you don't have an SSL certificate which you'll have to renew every year. Paypal is free to sign up with so it makes for a nice option since some people really only want to pay that way, so I would get an account with them and leave it as an option. Some people have a lot of money in their paypal accounts and want to spend that instead. Totally forget about printing online checks, either 2checkout or paypal will let them pay with their bank accounts and it's much less hassle to let them do it. Just be sure not to ship anything until their online check has cleared with either system or you'll be stuck with a loss.

In review:

Ecommerce exchange: Requires merchant account, setup fees, buying software and SSL certificate each year 2checkout.com 5% transaction fee and $49 setup fee but good fraud checking and no SSL needed Paypal: Free to sign up, verification for new users can be a pain, 3% transaction fees, less fraud checking.

Based on what I know, I don't recommend Ecommerce Exchange.

Since I review business opportunities and internet gurus all day for a living, you can guess I know which ones work and which ones don't. Click here to see how I make my money.

Click Here to Subscribe to Our FREE Newsletter.