Alan"s Money Blog

Apr 8, 2007

Alertpay: A possible major competitor to PayPal

In one of my previous blog posts I wrote about e-gold and espoused it many virtues. Now I do realize that some of you are not or will never be big fans of electronic currencies and would rather prefer to use traditional "Payment Processors". The biggest and of course the most popular payment processor is PayPal. However, lately PayPal's top-dog position is attracting hungry underdogs who are eager to chew a piece of PayPal's market share. One such competitor goes by the name of Alertpay.

According to their website Alertpay is " ..a privately owned and managed company founded in 2004, offers an internet payment system enabling any business or consumer with email to send and receive internet payments securely, quickly and cost-effectively. With its office headquarters in Montreal, Canada, AlertPay is available to users all around world."

I've been a user of PayPal for a long time, and while PayPal has decreased their fees be aware that more economical alternatives do exist. Alertpay is one such alternative payment processor. What I like most is their slightly lower fee structure.

Take a look at this

The following details the fees that AlertPay charges you for processing your transaction.

Type of account: Personal Premium Secured

Personal AccountPremium AccountSecured Account
Open an account Free Free Free
Receive funds $1.00 USD 2.50 % + $0.25 USD 3.90 % + $0.59 USD
Send money Free Free Free
Withdraw Funds
e-gold 4.00 % 4.00 % 4.00 %
Check $2.00 USD $2.00 USD $2.00 USD
Bank Transfer $0.50 USD $0.50 USD $0.50 USD
Add Funds
e-gold 2.50 % 2.50 % 2.50 %
Check Free Free Free
Bank Wire $20.00 USD $20.00 USD $20.00 USD
Bank Transfer Free Free Free
Money Order Free Free Free

As you can clearly see, their fees ARE lower than PayPal's, but can you trust them? So far I've heard nothing but good things about them, and my personal experience has been positive.

So which account should you open. Well, I would recommend starting off with a Personal Account, and later on if you need to accept credit card payments (for example if you sell on ebay or other auctions sites) then you can upgrade to a Premium Account. The secured account has absolutely no business restrictions on it. But the main selling point of the secured account is the "chargeback prevention" feature. I haven't really tested their secured account, so I can't really say how effective their chargeback prevention scheme is. By the way, I have a premium account.

You may have noticed that Alertpay will allow you to convert the money in your Alertpay account into e-gold and vice versa. I think this an absolutely spectacular feature! As far as their fees for doing this are concerned, well, they are competitive to say the least. You could get better fees somewhere else, but don't forget that you are paying a bit extra for the convenience.

So, in conclusion, the payment processing market is heating up, which in the end will be of great benefit to us consumers.

Look forward to me reviewing other payment processors/electronic currencies in the future.

Oh, and before I forget, if you want to open up an account with Alertpay, just follow this link:

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