2Checkout (2CO) Review

Overall Rating Breakdown
Sales & Marketing Tactics
Costs & Contract Terms
Complaints & Service
BBB Rating

2Checkout Overall Rating

"A-" Credit Card Processor Rating

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Jump to: Sales & Marketing | Costs & Contract | Complaints & Service | BBB Complaints

2Checkout Overview

2Checkout Logo

2Checkout Logo

2Checkout (2Checkout.com & 2CO.com) is an electronic payment service (merchant account alternative) founded in 2000 that allows online merchants to accept credit card payments from their customers. Also called “2CO,” 2Checkout offers similar services to those of PayPal, Google Checkout, and Amazon Payments with at least one major difference: unlike the others, 2Checkout does not solicit the merchant’s customer to sign up for a 2Checkout account and simply lets the customer pay by using a credit or debit card (among a few other options). For the purposes of this 2Checkout review, we’ll be focusing on the company’s credit card and debit card processing services.

2Checkout focuses its service solely on providing online payment options to small and mid-size businesses and claims to have much lower shopping cart abandonment rates than its competitors. This focus also allows 2Checkout’s services to be more feature-rich and centered on the needs of online sellers. Some of these extra services include a hosted shopping cart that can be easily set up and installed using code snippets, integration into third-party shopping carts, a PCI compliant payment gateway, and a robust user dashboard that has multi-level user access controls to filter what different users can see and do on the system. The one feature that lacks with 2Checkout is a virtual terminal, unless your business is a non-profit. Therefore, for-profit merchants cannot use 2Checkout to enter credit card information by hand. The details on the virtual terminal are somewhat unclear, so there may be exceptions depending on individual merchant needs.

Another notable feature of 2Checkout’s service is the ability to accept foreign currency. Customers can choose from eight different payment methods, 15 languages and 26 different currencies. 2Checkout also serves merchants in 25 other countries outside of the U.S. 2Checkout’s U.S. headquarters can be found at 855 Grandview Avenue, Suite 110, Columbus, OH 43215.

Expand to see a video introduction to 2Checkout

2CO Sales & Marketing Tactics | A+

Key Points – Sales & Marketing 
Uses independent resellers? No
Promotes deceptive rate quotes? No
Discloses all important terms? Yes

2Checkout does not appear to use any misleading sales tactics or marketing in its official materials. The service is primarily marketed online through advertising and affiliates. All pricing is clearly displayed without hiding any processing fees or rate tiers, and there are no online complaints filed here or elsewhere that describe issues with the company’s sales staff.

2Checkout Marketing Example

2CO Costs & Contract Terms | B+

Key Points – Costs & Contract Terms
Domestic (U.S.) rate: 2.9% + $0.30
International rate: 3.9% + $0.30 or 5.5% + $0.45
Termination fee: None
PCI compliance fee: None
Equipment lease: None

2Checkout’s pricing and fees are fairly simple. The company offers month-to-month service with no cancellation fee, and its credit card processing transaction fee for U.S. merchants is 2.9% plus $0.30 for all transactions. For U.S. merchants to accept international cards, the transaction fee jumps to 3.9% plus $0.30, and for international sellers, a transaction fee of 5.5% plus $0.45 applies to all payments. There is also a $10.99 setup fee for international accounts. The company’s “Pricing” page mentions that 2Checkout may, at its sole discretion, charge a higher transaction fee than the one advertised “if we determine that the Products or business practices of a Sub-Merchant create a potential or actual financial or reputational risk to 2CO, such as the sale of Restricted Products or high chargeback percentages.” It is unknown how the company calculates or enforces this potential rate increase, but there are not many merchant complaints about it at this time.

It is important to note that even though 2Checkout’s processing fee is somewhat high, 2Checkout offers several valuable services that are easy to use, and the company has no cancellation fees.

Other 2Checkout Fees:

Account Changes
Change URL or Domain Name $19
Customer Charge Disputes (Chargebacks)
Percent of Disputes Incurred During Entire Account History Fee for each Dispute
Up to 0.5% $20
5 or more Chargebacks in last 30 days and Chargeback rate between 0.5% and 1% $30
5 or more Chargebacks in last 30 days and Chargeback rate between 1% and 2% $40
5 or more Chargebacks in last 30 days and Chargeback rate over 2% $50

There is an additional $15 fee for each charge dispute a merchant challenges.

There are a few other fees only charged in circumstances unrelated to credit card processing. Merchants wishing to accept electronic checks and other forms of payment will want to inquire about the associated fees.

2CO Complaints & Service | A-

Key Points – Complaints & Service
Total complaints: Over 30
Live customer support? Yes
Most common complaint: Fund holds

Like other popular merchant account alternatives, 2Checkout suffers from the problem of being available to just about anyone who wants to accept payments and therefore has a few dozen complaints filed online. Of the complaints, many appear to have originated from people that did not understand, or take the time to understand, the company’s fees and services. Of the valid complaints, the two common types are of 2Checkout holding a merchant’s funds or cancelling a merchant’s account, both of which are likely due to the merchant engaging in a business with a high risk of fraud or Chargebacks. Although it is generally not our policy to lower a company’s score for having stringent fraud prevention policies, it does appear that 2Checkout could do a better job of communicating to merchants that any pending payments will not be released for 90 days after cancellation.

2CO BBB Report | B+ (CPO Adjusted)

Key Points – BBB Report
Product/service: 49
Billing/collection: 12
Advertising/sales: 4
Guarantee/warranty: 3
Delivery: 2

2Checkout has been accredited with the Better Business Bureau (BBB) since 2001 and, as of this review, holds an “A+” rating with 70 complaints filed in the last 36 months. Of the complaints, 49 are regarding problems with service, 12 with billing and collection disputes, four with advertising or sales issues, three with delivery problems, and two with warranty or guarantee issues. 2Checkout has been able to resolve 55 out of the 70 complaints.

Bottom Line

2Checkout offers an easy-to-use electronic payment alternative for accepting online payments and e-commerce transactions. Overall, the company scores well in customer satisfaction compared to similar providers of its size. To avoid problems, merchants should take care in understanding 2Checkout’s policies and procedures, especially regarding acceptable business types and transactions. 2Checkout’s processing fees are slightly higher than average, but the added cost also comes with a feature-rich service that is customizable to most online retailers’ needs. Visit 2Checkout at: http://www.2checkout.com.

This review was originally published on 12/12/12 and was last updated on 7/11/14.

Leave your review of 2Checkout in the comment section below:

2Checkout (2CO) Review

Rated 4.125 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-07-11 12:52:00

Of 2Checkout’s negative reviews, many appear to have originated from people that did not understand, or take the time to understand, the company’s fees and services. Of the valid complaints, the two common types are of 2Checkout (2checkout.com, 2CO.com) holding a merchant’s funds or cancelling a merchant’s account, both of which are likely due to the merchant engaging in a business with a high risk of fraud or Chargebacks. These complaints do not appear to be a widespread issue and there is no indication of abuse on the part of 2Checkout.

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About the author

Phillip Parker

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded CardPaymentOptions.com to help merchants enact positive change in the credit card processing industry.

Phillip can help you find an ethical and honest processor that will offer you great rates. Click here to request a free provider consultation.

Permanent link to this article: http://www.cardpaymentoptions.com/credit-card-processors/2checkout-2co/


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  1. raagdesign

    This is how we have been robbed by 2Checkout in the pretext of global payment:

    Transaction ID: 105412472144
    Payment done by customer in INR: 75500/-
    Payment converted in USD: 1150.65/- (Payment is less, as very high conversion rate is applied which 2CheckOut says this includes hedge charges, third party fees etc. which was never communicated nor disclosed, they write 5.5% + 45c only, it was expected to received approx $1234 USD based on FX conversion INR 61.15 / USD, but charged INR 65/USD)

    Reserve Held: 57.54 USD
    2CO Fees: 63.74 USD
    Adjust: 15.00 USD (At the time of wire transfer, this money was deducted)
    Final Payment: 1014.37 USD

    Total Charged: 17.79 % vs of 5.5% + 45c

    Do you really think, merchant like us will survive our business paying through 2Checkout?

    When contacted customer care: All vague replies and never got the answer. Ticket raised:


    PS: Those who are outside US and want to transact with 2Checkout, think twice before dealing with fraudsters !

    Did you find this review helpful? Yes   No

  2. Kim Morgan

    We have had no dealings with them, and yet I just noticed our bank account has been charged $75. I’ve never even heard of them! Plan to take action until they refund it.

    Did you find this review helpful? Yes   No

    1 / 1 found this review helpful.
  3. David D

    I attempted to use my Canadian MasterCard on 2CO. It was rejected with the comment that non-US currency would not be processed! Yet, this very page here emphasizes 2CO processes currency from all over the world. I add that my card has never before been refused anywhere at any time for decades. It is also obvious that Canadian currency would be converted to US currency by 2CO’s bank automatically. The company from whom I bought the products excused 2CO’s strange behavior as “an anomaly” and refused to investigate. It occurred to me that it was possible 2CO now had my credit card number and personal ID. When I asked the company to get a notarized statement from 2CO guaranteeing that my card number and personal ID were being deleted from their system, the company argued that my speculation did not require their intervention. Consequently, I have reported both to the BBB and continue to investigate.

    Did you find this review helpful? Yes   No

    1 / 1 found this review helpful.
  4. Shawn Randleman

    We had the worst experience every with 2Checkout. They try hold $40,000 of our sales based on a class we setup for over the next 6 months. They stated they could not release funds into the service was complete…6 months from now. We when back to PayPal!

    Did you find this review helpful? Yes   No

    1 / 1 found this review helpful.
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