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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…
2Checkout Customer Complaints & Reviews
Here's What Users Think
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 BBB Rating and Report
Our Better Business Bureau Profile Assessment
Product & Service Complaints
Billing & Collection Complaints
Advertising & Sales Complaints
Guarantee & Warranty Complaints
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
A Merged Profile
2Checkout’s BBB profile has been merged with that of Verifone. 2Checkout was previously accredited with the Better Business Bureau since 2001 and held an “A+” rating with 64 complaints. On the current Verifone profile, the company has 15 complaints. All 15 of the complaints were due to a problem with a product or service. Only 8 of these 15 complaints were resolved by the company to the satisfaction of the merchant. The remaining 7 were resolved to the dissatisfaction of the merchant or received no final response.
What Merchants Say
Verifone has also received 17 informal reviews against its BBB profile. All of them are negative in tone. One negative review accuses the company of not really existing the way they claim:
Applied for a credit card processing account, only to find that the company is simply a ghostly shell of a company with nobody running it and nobody to talk to. The account was stuck “waiting for activation” and never moved forward from that. We also asked questions via the ticketing system, and no replies were ever received. The chat support appears to be bots that only give the phone number and no actual assistance. The phone number does not lead to a human no matter what option you try or how many times you try it. I would not trust this company with one dollar. It essentially does not exist. Note, they now own 2checkout, so this formerly real company has essentially vaporized. This was the name by which I found them but again nobody is home.
It appears that this merchant may have better luck working with a top-rated e-commerce platform.
A “B” Performance Overall
In light of its moderately low complaint total and dispute to resolution ratio, we have adjusted the BBB’s rating to a “B.”
2Checkout Fees and Rates
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 Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
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.