I have been made aware this week that 2checkout, a very popular payment processor, is no longer processing payments inside the United States, incurring foreign fees for US customers.
2checkout has moved its processing centers outside the US, to Ireland, Germany, Cyprus, and Hong Kong. For customers from the US, this means that they will be charged for a transaction outside of the United states and their bank will most likely charge them an international transaction fee. These fees will vary by bank and the card that has been used to make payment.
I contacted 2checkout an asked them about this, as I could not find any information on their new corporate payment processing policy. They responded as follows:
We are transacting payments through a new payment processor and we will no longer be using our previous payment processor. The changes that you have noted are going to continue and we have no immediate plans to change this information.
A lot of people making payments through 2checkout are from the US just as a lot of 2checkout sellers are. Payment processing with credit and debit cards is still most popular in North America.
In fact, I would say it is raises ethical questions when a company lists a US and UK business address on their site and no longer processes funds in the US anymore, overnight, out of nowhere.
I wonder if they are warning customers ahead of the charge about possible foreign fees in the checkout process.
(photo by Nick Wheeler)