UPDATE: 2Checkout was purchased by Verifone in September 2020. However, they are still operating a website and (it appears) products under the 2Checkout brand, and the BBB maintains a separate profile for 2Checkout, so we will maintain this profile for now.
As mentioned above, 2Checkout was purchased by Verifone in September 2020 for an undisclosed amount. According to a blog post by 2Checkout COO, “Our service offerings are not impacted, and customers do not have to take any action. No service disruptions or billing changes to deal with. Long term, 2Checkout clients will not only benefit from enhanced solutions with stronger capabilities, but also from increased innovation and operational efficiency from leveraging Verifone’s significant presence, market share and experience in global commerce.” VeriFone is located at 88 W Plumeria Dr San Jose, CA 95134, according to their BBB profile.
We will continue to monitor the situation and adjust this review if the new situation changes anything for 2Checkout merchants.
E-Commerce For a Global Market
2Checkout is an electronic payment service (merchant account alternative) founded in 2000 that allows merchants to accept online credit card payments from customers in their home country and abroad. Also called “2CO,” 2Checkout offers similar services to those of PayPal and Stripe. Unlike some of its competitors, however, 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). 2Checkout was acquired by an e-commerce company called Avangate in April 2017, but the combined organizations will continue operating as 2Checkout going forward. For the purposes of this 2Checkout review, we’ll be focusing on the company's credit card and debit card processing services.
Is 2Checkout Holding Your Funds Right Now?
Many merchants have had their payments frozen by 2Checkout. If you're one of them, then you might find these resources helpful:
- How To Make Your Payment Processor Release Your Money
- How to Fight Chargebacks
- Best Merchant Accounts for E-Commerce
2Checkout Payment Processing
2Checkout focuses its service solely on providing international online payment options to small and mid-size businesses and claims to have much lower shopping cart abandonment rates than its competitors. This narrow focus also allows 2Checkout’s services to be more feature-rich and centered on the needs of online sellers. The one feature that lacks with 2Checkout is a virtual terminal, unless your business is a non-profit. Therefore, as a default setting, merchants cannot use 2Checkout to enter credit card information by hand. Merchants who are looking for a highly rated virtual terminal provider will need to contact their 2Checkout account representative. 2Checkout customers can choose from 45 different payment methods, 30+ languages, and over 100 different currencies. 2Checkout also serves merchants in 200 other countries outside of the U.S.
Location & Ownership
2Checkout's U.S. headquarters can be found at 1201 Dublin Rd Columbus, OH 43215. The president and COO of 2Checkout is Erich Litch, while the CEO is Mike Pulli.
Table of Contents
- Costs & Contract: Offers a month-to-month agreement with no early termination fee and…
- Complaints & Service: Has received more than 500 public complaints regarding…
- BBB Rating: 2Checkout (as Verifone) has an “A-” rating and has received 15 complaints and 17 reviews in the last 36 months.
- Sales & Marketing: Does not hire independent sales agents and has not received any complaints about its…
|Customizable checkout experience.
|Strict compliance policies.
|Global payment solution.
|Higher transaction fees.
|Multiple currency support.
|Limited merchant support.
|Integrated fraud prevention.
|Responsive customer support.
|Complex pricing structure.
|Easy integration options.
|Account stability issues.
2Checkout Customer Reviews
Here's What Their Clients Say
|Total Online Complaints
|Live Customer Support
|Most Common Complaint
Moderate Complaint Total
Like other popular merchant account alternatives, 2Checkout suffers from the problem of being available to just about anyone who wants to accept payments. This has resulted in a moderate number of complaints filed against the company. Of the 2Checkout complaints that we have found, many appear to have originated from people that did not understand, or take the time to understand, the company’s restricted products and services policy. A smaller portion of the complaints seems to have been filed by customers who purchased goods from a 2Checkout merchant and mistakenly filed complaints against 2Checkout itself.
Fund-Holds an Issue
Of the valid complaints, the three most common types accuse 2Checkout of holding a merchant’s funds, canceling a merchant’s account, or offering poor customer service. The first two issues are likely due to the complainants being better suited for a dedicated high-risk merchant account than for 2Checkout. 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.
2Checkout Lawsuits and Fines
It appears that 2Checkout is involved in a 2021 class-action suit over allegedly signing consumers up for automated payments without enough notice. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
2Checkout Customer Service Options
There has been a recent spike in complaints that single out poor customer service from 2Checkout. This has lowered the company’s score in this category. The company offers a FAQs section and knowledge center on its website as well as a 24/7 support ticket system and phone support between 8 am to 4:30 EST pm from Monday through Friday.
2Checkout Online Ratings
Here's How They Rate Online
BBB Rating Analysis for 2Checkout
2Checkout (as VeriFone) is not BBB accredited and has a C- rating. The business has been operational for 33 years. It has an average customer review rating of 1/5 stars based on 11 customer reviews. There are 20 customer complaints closed in the last 3 years, with 5 complaints closed in the last 12 months. Common themes in the reviews and complaints include issues with products/services and customer service.
I got a software program (Leawo Blu-ray ripper) that didn’t work. They promised a partial refund of $15 and said it was processed on March 15. It is now 2 months later and they are saying no that they refunded it again on May 11. Still nothing. I’m a poor college student and I can’t afford to be messing around with stupid companies that don’t want to work with me. – Complaint from May 22, 2023
If there were negative Stars I would go into the negative. 1. They are hard to get hold of. There are several hoops to jump through to even get to their information. I see the creepy hand of a corporate psychologist, (a mostly corrupting and creepy profession), at work devising those hoops through we must jump. 2. Very disappointing. 2checkout auto charged me for an additional (one year subscription) while their own records have a purchase for a two year subscription for the same product started six months ago. * No courtesy note:*We noticed that you are scheduled to purchase a product again which you already own. As our courtesy, to you, we want to ask if you intend to purchase a subscription again while you currently own the same product. That language was nowhere to be found anywhere. – Review from November 23, 2023
There are no positive reviews published about VeriFone, Inc. on the BBB website.
Trustpilot Rating Analysis for 2Checkout
2Checkout (now Verifone), an e-Commerce solution provider, has a “Poor” rating on Trustpilot with a score of 2.6 out of 5, based on 2,242 reviews. The company has responded to 99% of negative reviews, usually within 2 days. The reviews reveal a mix of sentiments, with 43% 5-star and 42% 1-star ratings. Common themes in the reviews include issues with payment processing, particularly the inability to accept Visa and MasterCard directly, leading to decreased sales and customer dissatisfaction. Customers also express concerns about the complexity of the account opening process and the level of customer support.
Everything is good at 2checkout but they stop accepting Visa and MasterCard !! . After that my sales decreased about 50% Because customers need open account at paypal. One more What a joke they have card options in shopping cart by default but not accepting Visa and MasterCard. – Review from January 8, 2023
Our customer can not pay by VIsa or Mastercard. They have to go through PayPal. Many customer abandon shopping cart because they do not have PayPal account, not knowing they can pay with their Visa or Mastercard through PayPal as guest. – Review from December 5, 2023
Since a lot of years we use the service of Avangate, 2Checkout, Verifone. Always very professional, good support, no errors. – Review from December 5, 2023
Quite good experience with this company for a business who accept Paypal & credit card. – Review from December 5, 2023
Sitejabber Rating Analysis for 2Checkout
2Checkout (now Verifone) has a consumer rating of 2.0 stars on Sitejabber, based on 138 reviews. This rating indicates general dissatisfaction among customers. Common complaints include issues with customer service and credit card processing. Positive feedback is less frequent, but some customers have noted satisfactory experiences with refunds and customer support.
Avoid this service at all costs. They will charge you renewal fees long after you cancel your subscriptions. I have been trying for weeks to get a refund for a product that I canceled renewals about 1 year ago. They do not respond to emails and they have no customer service help. I had to contact my credit card to ask that the transaction be tracked as a fraud charge. – Review from Klaus B., July 20th, 2023
Customer Support is unresponsive, Python APIs are outdated. The support team does not respond in a timely manner. In addition, it only uses automated responses and does not attend to problems in a personalized way. They decided not to approve my business, even if uploaded every single document they asked for. They didn’t gave me a detailed answer to address the issue, they just cancel my account and sent me autogenerated email. So I waste development time and money. If you are developing on Python be prepared to downgrade the version of your software since the API is old and outdated. – Review from Juan O., April 2nd, 2022
I use it for over 10 years, since 2009. Back then they were called Avangate. The service is great, I highly recommend 2Checkout. – Review from Dmitriy K., August 25th, 2021
Sometimes the payout gets delayed even though the payment was done within the reporting period, often there have been cases when they said that they would pay me on a date, but then pushed it back by a week. Nothing too extreme but frustrating nonetheless. – Review from Mahfuz I., November 9th, 2023
2Checkout Fees, Rates & Costs
A Closer Look at The Contract
|3.5% + $0.35
|4.5% + $0.45
|6% + $0.60
|1.00% - 4.99%
|Early Termination Fee
|PCI Compliance Fee
2Checkout’s pricing and fees are fairly simple. Since the time of our last update, however, the company has altered its pricing page and no longer differs its rates dependent on country. 2Checkout now simply offers three plans: “2Sell,” which charges 3.5% plus $0.35 per successful sale, the “2Subscribe” plan, which charges 4.5% plus $0.45 per successful sale and includes all “2Sell” benefits, and the “2Monetize” plan, which is marketed as an “all in one solution to sell digital goods globally,” costs 6% plus $0.60 per successful sale, and includes all benefits of the “2Subscribe” level. 2Checkout states that transaction fees for its services are now the same worldwide. 2Checkout does prohibit subscribers whose chargebacks exceed 1% of their monthly transactions. Accounts with frequent chargebacks should seek a provider offering services to high-risk merchants. The company also provides custom pricing for its “Enterprise” plan.
2Checkout Fee Increase Policy
A Low-Commitment Option
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. This makes it a low-risk option for companies that need to process offshore payments. We also encourage merchants to check out our list of the providers of the best merchant accounts.
Other Services Come With Their Own Fees
There are a few other fees that the company may charge in circumstances unrelated to its credit card processing service. Merchants wishing to accept electronic checks and other forms of payment will want to inquire about these associated fees.
2Checkout Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers
|Advertises Deceptive Rates
|Discloses All Important Terms
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. This level of transparency is a main reason why 2CO is such a strong competitor to PayPal. We have accordingly assigned the company an “A” rating in this category.
This compares favorably to our list of best credit card processors.
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