2Checkout (2CO) Review

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Credit Card Processors
2Checkout Logo
Category Breakdown
Sales & Marketing rated A plus
Costs & Contract rated B plus
Complaints & Service rated A minus
BBB Rating rated B

Overall Rating

"A-" Credit Card Processor Rating


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. 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 wish to use the virtual terminal will need to contact their 2Checkout account representative.

2Checkout 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, Ohio 43215. The founder and chairman of 2Checkout is Alan Homewood, while the CEO is Shawn Budde.

2Checkout Products and Services:

  • Debit and credit card processing
  • International processing
  • Hosted online shopping cart (with integration for third-party carts)
  • PCI-compliant payment gateway
  • Dashboard with multi-level user access
  • Foreign language and currency support
  • Virtual terminal (activation required)
  • Recurring billing
  • Mobile app

Industries served:

  • E-commerce
  • International

2Checkout Video Introduction

Related: Best Processors For E-Commerce Overall

Sales & Marketing | 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

Related: Best All-in-One E-Commerce Platforms

Costs & Contract | 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 terms of use mention that 2Checkout may, at its sole discretion, charge a higher transaction fee than the one advertised if we determine that the sale of Products create a potential or actual financial or reputational risk to us, such as those in the Restricted Products List. 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.

Related: Best Processors For Subscription & Membership Businesses

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. Other complaints seem to have been filed by customers who purchased goods from a 2Checkout merchant and mistakenly filed complaints against 2CO itself.

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.

Related: Best Processors For Quickbooks Integration

BBB Report | B*

Key Points – BBB Report
Product/service: 50
Billing/collection: 14
Advertising/sales: 3
Guarantee/warranty: 1
Delivery: 2

2Checkout has been accredited with the Better Business Bureau since 2001 and, as of this review, holds an “A+” rating with 70 complaints filed in the last 36 months. Of the complaints, 50 are regarding problems with service, 14 with billing and collection disputes, three with advertising or sales issues, two with delivery problems, and one with a warranty or guarantee issue. 2Checkout has been able to resolve 53 out of the 70 complaints. The company has also received nine informal complaints against its BBB profile. In light of these figures, we have adjusted the BBB’s rating to a “B.” For more on why we adjust BBB ratings, please see our rating criteria.

* Denotes CPO-adjusted BBB score

Related: Best Services For Combining Online and Brick & Mortar Sales

Bottom Line

2Checkout Review

Rated 4.1 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2015-01-06

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 1/6/15.

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  1. Sarona Gun Works LLC

    The web-site administrator thought that “2Checkout” would be a good service that my gun repair and firearms accessory could use. Initially, my legitimate, on-line business was accepted, and I received emails thanking me for choosing their service. Then, CEO Frank Peto, sends me an email stating that they don’t approve of my selling firearms on-line. The problem is, I don’t sell firearms on line, or through this web site, but only accessories and repair parts for firearms. The last time I looked, that is still a legal thing to do. Any of you folks who have a legitimate business, but enjoy the shooting sports, need to reconsider the anti-shooting/firearms stand that 2Checkout has taken. I will find another service that graciously accepts ALL businesses that perform a service that is legitimate and has no past history to warrant refusal.

  2. 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 !

  3. 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.

    1. Janeesa

      Hi Kim,

      You may have made a purchase from one of our merchants – our company name will show up on your statement. Please send us an email at [email protected], and we’ll help get this taken care of.

      Best regards,

  4. 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.

  5. 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!

  6. Lee

    We received an email from 2checkout saying that due to violating their Terms of Service on multiple occasions, all or our funds have been forfeited. Is it legal for them to do that? Anyone come across the same situation as ours? Can we sue 2checkout about this?

  7. Sue

    I recently tried to pay for a product using 2checkout only to be repeatedly told that authorization failed and teh transaction was not completed. Frustrated I turned to paypal and lo and behold my purchase took place within 30 seconds. 2 days later while looking at my credit card statements i found repeated charges originating from the company in the value of $50 each on my account (the same value as the product i had tried to purchase using their service) . I was most upset and have since started teh process of disputing these charges Beware of these scammers!

  8. 2Checkout Cost Me

    I recently opened an account with 2Checkout. I am a for hire programmer and so my business model is to be at their place of business and have them pay while I am there. Paypal has a threshold and after a certain amount they force the customer into an account, and some customers don’t like that – so I tried 2Checkout.

    The first transaction went in right away and after waiting a week for the $, I was told there was a refund, with no reason other than a list of possible 3 things. I called and was told the email address was the issue. I had my client redo the order. Well after waiting a week and being charged $30 or so for the transaction that was returned!, I was informed it was refunded again and this time because they filled out the order on the same IP as my laptop. Well, they paid while I was there, so of course it was the same IP.

    In calling, they said it violated their policies to have the same IP. So the only way for this transaction to go through was a different IP? So my client would have to go home and pay? I have NEVER heard of this before and now I have to go back a second time and ask them to pay.

    It took 3 months to get this account and now it’s in jeopardy because of this.

    If you are thinking of using 2checkout – buyer beware. Read all the reviews -especially the BBB. Now that I m looking (shame on me) I am seeing similar issues. DO NOT USE THEM

  9. Pete Bottomley

    I’m sorry but the statement that 2checkout.com have only a handful of complaints is incorrect, I’ve had dealing with them on a transaction since February & they haven’t even bothered to reply to a single email, I checked the net to see if anyone else had had a problem & there was a plethora of complaints, infact not one positive, so be very wary of them indeed.

  10. A.Kamra

    You were lucky, back in 2006 i had over 30,000 Frozen in my account, they seized it blaming it on some TOS Crap and i haven’t received the funds up to date.

  11. Arum Chak

    DO NOT make the mistake of signing up with 2checkout, unless you want to suffer like me!

    I consider myself a typical internet marketer selling my own digital creations such as ebooks, templates, etc. I have been in business with this company as a vendor for the past 5 years. All of a sudden they make my account inactive and I lose my sales. This they did without any prior warning at all. I discovered this on my own when I found all my order links showing a ‘parameter error’! When I inquired, they told me that my website was missing a number of documents such as privacy policy, refund policy etc (which is of course b.s; the link to all policies is right there on my homepage and salespages; maybe the person reviewing my website was a blind man!). I gave them the links to these policies and then they insisted that these links must be right on the order page (How am I supposed to do that? Since 2checkout really offers me a payment link redirect and not an order page). I insisted that these links are indeed ON the salespages from which customers would be ordering my products (in fact, not a single customer has raised an issue about these, in all these 5 years btw!).

    When that was over they insisted that my salespages had no ‘real marketing’ at all. I asked what they mean by ‘real marketing’ since I indeed do the marketing required to sell my products.

    At last they insisted that I give them access details to my customer areas (including membership login areas) so they can take a look around. I refuse this, because not only this would violate the privacy of my customers, I also don’t trust them enough for that (ever seen a PayPal staff asking you for any kind of ‘password/login information’?). This is the only thing I refused them and due to that they permanently set my account to ‘inactive’ status first and then to dormant status!

    That over, I asked them to close my account and give me the remaining $54 balance I had in my account. 2checkout has a different ‘release level’ for each payment option they offer, in case you don’t know, and if your balance is below that release level, then you won’t get the money, no matter how much you beg. They said that:

    ‘The minimum release level for a wire transfer is $300, for Payoneer is $20 and for Air Mail check is $100.”

    Based on the above, my only option was Payoneer. And on top of that – it is not the ‘direct bank transfer’ option of Payoneer, mind you (which is what I asked for because it is free but again was refused by 2checkout), but instead the MasterCard option which would actually require me to invest around $25 just to get the card! Didn’t make any sense to me to spend $25 to get $54 back, so I decided to leave the balance in my account.

    I thought (and requested too) that they would make an exception in case of account closure and send me one last air mail check! But NO! They are not humans at all! They are just working machines without any sense of empathy in them!

    I am writing this so others know that they treat their customers like dirt, regardless of how long you are doing business with them! STAY AWAY from them! Even Paypal, as bad as they are, is still much better than 2checkout!

    Oh, and did I tell you that they no longer offer services to internet marketers, although they are hardly explicit about this stupid rule! After all, they would tell you everything BUT the truth!

  12. dk

    Like the reviewers above I would not recommend 2checkout. In my case two years after setting up my account – they change their product terms and inform me that my products are no longer allowed and terminate my ability to process payments with those products. Getting setup with them in the first place is extremely time consuming because they have picky requirements – and then your likely to lose your account anyways when they shortly after change terms. Honestly I wonder if they are just in the business of collecting account setup fees since they seem to change terms so often then almost everyone will lose their account eventually. Paypal, Google checkout & propal all seem to be better.

  13. Barb

    I have been using 2CO for a few years now. All of a sudden all recurrent payments are failing???? I have called them twice about it and it’s always somebody elses fault. Didn’t know they were based in Cyprus and is why the banks are refusing the charge saying “invalid request”.

    I told them not everybody’s card is expired! Fixed everything last month and now this month recurring payments are failing AGAIN!!!!!

    I will be changing card processors but have to inconvenience my clients to do so.

  14. Dawn

    I recently paid an application fee to 2checkout and although there was no guarantee I would be accepted I was supposed to hear within 48 hours whether I had been or not. Never heard a thing and my control panel just remained in pending for weeks, until I finally made a complaint with Paypal and tried to get my money back. Unfortunately they (Paypal) couldn’t claim in my favour as there was a terms and conditions in the small print that the fee was non refundable. However I still think they should have gone in my favour – else why don’t we all just sell something, not provide the service and make the terms non refundable, we would all be rich! And how disgusting are 2checkout to not honour my request for a refund when they have failed to provide the service they said they would. Been with Paypal for many years they are simply the best!

    1. eric

      You are extremely lucky.

      I wish they just rejected my application fee 7 years ago and my recurrent orders weren’t hit when they suddenly closed my account, because of “changed terms with their upstream providers”.

      Then I was at their mercy for 104 days until I got my frozen funds back.

      Their closed account policy is constantly changing, the support is intolerably rude.

      Now I’m happily using paypal.

  15. dan

    Diligently read 2checkout TOS, especially the termination section.

    They can close your account without any reason effective immediately, no warning whatsoever. Even if you have account for 5 years it doesn’t give you any protection.

    Funds will be frozen for at least 90 days.

    Recurrent transactions will be lost.

    Just make a search on the Internet 2checkout account closed.

    As to the workings some banks decline using their credit cards, because 2checkout payment gateway is in Cyprus (optimizing taxes?), the declined transactions are not passed to the seller, the seller will learn only if the customer contacts him. Then their fraud prevention system, most orders pass automatically , but the rest go through manual review and frequently valid orders are rejected.

  16. Scott

    AVOID 2 Check.com !! The company is Terrible, There Fee’s are Astronomical, They only transfer YOUR money to your account Once a week and you have no control over it at all until then, They withhold fee’s ( upwards of $500 or more ) of YOUR money and they say it’s for charge backs & returns yet when you get a charge back it seems to come out of your normal account And Not the Withheld money! They like to hold onto the “Withheld” money for one reason and one reason only “Interest”… Then when you end up canceling your account they Keep ALL your “With held” money for 90 days and say it’s for returns or charge backs! Then when they tell you a release date for you to receive your “With held” money count on it being longer because they fail to tell you about the “Review” of your release money…. THIS COMPANY IS A JOKE AND I WILL WARN AS MANY PEOPLE AS I CAN ABOUT THIS “RIP OFF” COMPANY!

    PayPal is 110% better than 2CO with great customer service, Much better rates, and you get to transfer money to your bank when ever you like… I made the switch from 2CO to PayPal and couldn’t more happier..

  17. Tony Curtis

    Do not ever choose 2 checkout and this is why I was a client for 3 years and only ever had one charge returned out of 2300 charges , they made a decission to no longer haddle dating site’s , With out any notice they sent me an e-mail that they closed my account and turned me off my charging for clients. They will screw you and do not care about you as there customer. Take my advice NEVER USE THIS COMPANY THEY DO NOT CARE ABOUT YOU OR IF THEY DAMAGE YOUR BUSINESS

  18. fritz

    A huge reason NOT to use 2Checkout as a vendor or consumer: when a credit card exprires or must be updated, 2Checkout does NOT charge immediately after the customer updates, nor allow the customer to do so, but instead makes everyone wait up to 24 hours until THEY charge it. WHY? Most online processers allow our customers to update a card as needed, then put the charge through then. I am going to ditch 2Checkout and advise my clients and assocates to do so for the same reason.

  19. fred

    Their fees are very high but the one thing you really have to be careful about is fraud because you end up on the hook for fees and penalties.

    They supposedly have fraud detection systems in place but they approved an automated purchase on my site from a US credit card, from someone using a Pakistan address, from a UK IP. All huge red flags and they missed all of them. Then they charge you a penalty + you are out the fees as well which just rubs salt in the wound. If you read the fine print it says you are 100% responsible for detecting fraud and they clearly don’t take it very seriously to let such obviously fraudulent purchases through.

    You can dispute it but 2checkout will basically tell you to not fight it because you will lose and they claim they have no influence on the banks who always rule in favor of the customer claiming fraud. So they blame the banks and say they are just the middleman yet you are stuck with the lost fees and penalties.

    So be very wary of these things when you use them.

  20. Ian Eaves

    I would highly discourage businesses and individuals from using 2Checkout for any of their purchase handling needs. Attempting to make even the simplest of purchases through them has been a nightmare in which even attempt is thwarted by vague accusations of fraud. I’ve had no issues dealing with any other retailer, brick and mortar location or the like all of which is only exacerbated by the horrible customer service. My first attempt at communication was met by long delays followed up with a terse and unhelpful response telling me that the online help desk refused to actually help and that I should call their main office (which is not possible as I am currently abroad). In later emails they admitted that the process could be handled online but asked for information which not even by bank could provide after which I was left with only automated responses.

    The service I am looking for only accepts payment via 2Checkout and it is for this reason and this reason alone that I will no longer be giving them my business. If your looking for a business actually capable of handling online transactions without resulting in lost sales or quality customer service please look else where – this is not the place.

  21. Sean

    Generally 2Co is better than Paypal or Google checkout, but it does have two serious flaws. If you KNOW of the flaws going into a business relationship with 2CO , then you are better off than I was !

    1) You must marked item as shipped. Make darn sure you do this. Its not as easy as just clicking a box.
    There is this ridiculous routine you have to go through which is time consumptive and tricky. Sometimes
    its easier to have one of the phone reps walk you through it a dozen times and have them make sure too.
    YOU HAVE to mark the item shipped quickly, or you may not get paid at all. sucks but thats the way 2co works.

    2) You only get paid once a week, and All your sales have to be done the previous Sunday, for payment
    on Friday. Totally sucks, but that’s the way they work.

    3) charge backs can hold up ALL payments. We had 400.00 to be paid out, and a 110.00 chargeback
    came in , which delayed payments for several weeks!! NOW this totally sucked . But again, its just
    the way they work. You will get paid, sooner or later, and they do actually fight for you , if you have good
    proof that the buyer did receive the item (tracking and signature). But they use your money all the while
    and you don’t get paid.

    Despite these drawbacks, 2co has features that are very good. But Like Amazon.com, you may not
    see a dime for up to a month. And if you don’t follow through with their intricate methodology, you
    may not get paid at all.

    Overall, id give them a C, which still beats Paypal.

  22. 2Checkout Exposed

    AVOID 2Checkout at all costs. This review was probably sponsored by them!

    Many online Experts will not deal with 2Checkout for a whole variety of reasons. One main one is that they delete your account because THEY have changed their terms of service and you omit a refund policy or something equally trivial. Rather than telling you, they delete first and ask you to reapply and pay the opening account fee again.

    I’ve NEVER had an issue with Paypal or Clickbank. 2 Checkout rely on meek people who give up rather than complain because rather than omit anything, they prefer to point the finger at you!!!

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