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2Checkout is a digital commerce platform for businesses that sell physical goods or digital products, such as 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 2020.
Price for payment processing
No hardware available.
Payment processing cost
3.5% plus 35 cents per successful sale and up.
Supported currencies and countries
24/7 technical support for merchants through live chat or email. 24/7 phone and email support for shoppers having order or payment issues.
How does 2Checkout work?
2Checkout helps small businesses accept online credit card payments for physical and digital goods in 200 countries. 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. You can work with the company's sales team to decide which of these options (or a hybrid of the two) is best for your business.
In the first option, 2Checkout serves as the merchant of record, meaning 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, including sales tax collection and remittance.
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
The platform only supports online payments, meaning 2Checkout is best for companies that only sell products and services online.
2.7% plus 5 cents for in-person transactions.
2.9% plus 30 cents for online transactions.
3.4% plus 30 cents for manually keyed transactions.
4.4% plus 30 cents for international card transactions.
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.
2.59% plus 49 cents per transaction for credit cards, debit cards and digital wallets.
3.49% plus 49 cents for Venmo (U.S. only).
0.75% for ACH (maximum fee of $5). Discounts available for enterprise businesses.
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.