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2Checkout is a digital commerce platform for businesses that sell physical goods or digital products, like software, online. Its global payment options and subscription billing capabilities make it stand out, but its payment processing rates can be expensive compared with domestic rates. The product is well suited for businesses that sell digital goods online, could use advanced subscription tools and accept international transactions.
Verifone acquired 2Checkout in September 2020, and according to a press release written at the time by 2Checkout’s president, Erich Litch, the company will continue forward with its roadmap in the short term. The website says “2Checkout is now Verifone,” hinting at the possibility of a more complete merger in the future.
No hardware available.
Payment processing cost
3.5% plus 35 cents per successful sale and up.
24/7 technical support for merchants through live chat or email. 24/7 phone and email support for shoppers having order or payment issues.
Ease of use
2Checkout’s dashboard is easy to navigate, and the setup process is straightforward.
How does 2Checkout work?
2Checkout helps small businesses accept online credit card payments for physical and digital goods in 200 countries, including the U.S. In addition to payment processing, the company gives clients access to more than 120 cart integrations for customizing shoppers’ checkout experience. The highest-tier 2Monetize plan includes other features, like invoice management, global tax and regulatory compliance, tools for boosting conversion rates and access to more than 45 payment methods.
The platform offers two flexible payment models — a merchant of record model and a payment service provider model. In the first option, 2Checkout serves as your merchant of record, meaning that it assumes financial liability for processing your business’s transactions. As such, it also handles sales tax management, invoicing, compliance and more. With the payment service provider model, on the other hand, you must cover payment management liabilities and responsibilities yourself. If you ultimately decide to use 2Checkout, you can work with its sales team to decide which of these options (or a hybrid of the two) is best for your business.
Pricing and plans
3.5% plus 35 cents per successful sale.
4.5% plus 45 cents per successful sale.
Everything in 2Sell plus:
6% plus 60 cents per successful sale.
Everything in 2Subscribe plus:
The 2Monetize plan is only for digital products, not physical products.
2Checkout’s 2Subscribe plan includes tools that help subscription-based businesses retain customers, manage subscription renewals and analyze subscription data. For businesses such as software companies that rely almost entirely on subscriptions, access to these features is key. There are many merchant service providers that process payments online, but not all focus so heavily on subscriptions and the sale of digital goods, as opposed to physical goods.
If you want to expand your online business across borders, 2Checkout lets you accept dozens of payment methods and currencies and offers multiple checkout languages. But when you extend your reach to different countries, you also have to keep track of regulation changes and tax rules in those countries. If you work with the platform as your merchant of record, it will do a lot of that work for you. And to keep things simple, transaction fees stay consistent worldwide except in specific countries where an additional 2% fee applies to accept payments from shoppers outside of your country.
Can only accept payments online
It’s also worth noting that the platform only supports online payments and not in-store payments — at least at this time. Verifone, its parent company, does sell card readers and other hardware, meaning 2Checkout’s offerings could change in the future. For right now, though, 2Checkout is best for companies that only sell products and services online.
For online payments: 2.9% plus 30 cents per transaction.
For in-person payments: 2.7% plus 5 cents per transaction.
Perhaps one of the most recognizable names in payment processing, Stripe offers a variety of payment options and is known for its customizable development tools. Like 2Checkout, it allows you to accept multiple payment methods and currencies and create an integrated solution that works best for your business. You can develop your own payment form, use its embeddable checkout or integrate using Stripe API. It also includes business operations tools and offers its own add-ons, as well as third-party integration options.
Cards and digital wallets: 2.59% plus 49 cents per transaction; processing American Express cards costs 3.5% per transaction with no fixed fee.
Venmo: 3.49% plus 49 cents per transaction.
For an option that offers payment processing with a dedicated merchant account (which Stripe does not), you might consider Braintree. It gives your e-commerce business the ability to accept multiple payment methods from major credit cards to mobile wallets, and operates in over 130 currencies and more than 45 countries. Additionally, the company has customizable checkout options and offers third-party integrations with top e-commerce providers. Other tools handle fraud, reporting and recurring billing.
A version of this article was first published on Fundera, a subsidiary of NerdWallet.