2Checkout (2CO) Review

2Checkout Overall Rating

Review Updated: 12/12/2012
Top Rated Processors | Get Rate Quotes | Write a 2Checkout Review

2Checkout Overview

2Checkout Logo

2Checkout (2Checkout.com & 2CO.com) is a 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 that 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 credit card and debit card processing services.

2Checkout focuses it 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 setup and installed using code snippets, integration into 3rd 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.

2CO Sales Strategy & Tactics | A+

2Checkout does not appear to use any mis-leading sales tactics or marketing. The service is primarily marketed online through advertising and affiliates. All pricing is clearly displayed without hiding any processing fees or rate tiers.

2CO Fees, Costs & Contract Terms | B-

There are both pros and cons to 2Checkout pricing and fees. On the pro side, 2Checkout offers month-to-month service with no cancellation fee, and its credit card processing transaction fees are simple and easy to understand. On the con side, there is a $10.99 setup fee and the processing fee is a whopping 5.5% + $0.49 per credit or debit card transaction. The processing fee is considerably higher than most traditional merchant accounts and about 1.5% higher than PayPal’s highest fee tier.

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

Other 2Checkout Fees:

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. Merchant’s wishing to accept electronic checks and other forms of payment will want to inquire about the associated fees.

2CO Complaints & Service | A-

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 appeared 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 do 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.

2CO Better Business Bureau Report | A- (CPO Adjusted)

2Checkout has been accredited with the Better Business Bureau (BBB) since 2001 and, as of this review, holds an “A+” rating with 58 complaints (down from 73 as of our last update) filed in the last 36 months. Of the complaints, 36 are regarding problems with service, 12 with billing and collection disputes, four with advertising or sales issues, three with delivery problems, and three with warranty or guarantee issues.  2Checkout has been able to resolve 48 out of 58 of the 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 higher than average but the added cost also comes with a feature-rich service that is customizable to most online retailer’s needs.  Visit 2Checkout at: http://www.2checkout.com