10 reasons why 2Checkout (2CO) sucks and why paypal is better.

We had 2CO payment gateway on our shop earlier. Last week we had a problem withdrawing the money. We created a support ticket on 20th April at 2AM, and we didn’t get a reply until 23rd April 2PM, that’s three and half days. Even after  taking 84 hours to respond, their reply wasn’t useful and accurate, I replied back asking for more details, and I haven’t heard from them yet.

10 days and the issue is yet to be resolved

This kind of support is unacceptable for the hefty transaction fee and withdrawal fee they charge

Here are other reason not use this service apart form the useless and unprofessional support.

  1. Setup fee of 50$ [No setup fee for PayPal]
  2. 40 cents + 5.5% on every transaction. [PayPal is 30cents + 2.9% ]
  3. Useless support team.
  4. Not easy to use.
  5. You can use it on only one domain. [ With PayPal, you can use the same account on any number of sites, and you don't even need a site to use it]
  6. Apart from the hefty transaction fee, there is withdrawal fee, which is not good when It comes to business incorporation. [No withdraw fee for PayPal]
  7. You can not withdraw anytime you want. [PayPal: Withdraw anytime]
  8. Minimum payout is 300$. [PayPal: No minimum payout ]
  9. They will shutdown you account anytime without notice and keep the setup fee.
  10. If your currency is not US$,  their currency conversion fee is a lot higher than PayPal and local banks.

The only reason I started using them was Indian buyers can not use paypal.  But after the way their support dealt my issue,  I’m never ever going to use them or recommend to anyone.

49 thoughts on “10 reasons why 2Checkout (2CO) sucks and why paypal is better.

  1. I have been using 2checkout for several years. Its coming to an end. Some orders just don’t get paid out to me. The customer is charged but the status is “approved” and “not yet paid” on my merchant screen. 2checkout has excuses but the customer is out the $ and me the product yet I am not getting paid. You have to watch the like a hawk and the site is absolutely horrible to use. They are not honest in my opinion. I think they feed off people who have been kicked off paypal. I say that because I notice almost no one uses credit cards thru them and its always the credit card orders that have problems. This is why I got 2checkout – for people who don’t like Paypal. Yet 98% of my 2checkout sales is paypal funded so there is no point. Might as well just use Paypal.

  2. Good blog post and the 10 facts you point out are absolutely true. We were with 2CO for 7 years and now moved over to just using PayPal.

  3. Thanks for your blog. Guess what, 2checkout people just lost a customer because of your blog :P

  4. I agree with you, the 2checkout support team is simply USELESS. They are f***ing idiots. I will NEVER use 2checkout again.

  5. We are using 2checkout for our site, there is 5 to 7 missing order every day for 2checkout gateway.

  6. Could you please confirm what is the alternative to accept payments via CC from customers outside India ? If 2checkout does not works what other alternative have you tried and worked ?

  7. Great seeing this!
    I’m just applying to 2checkout now but they’ve been given me tough time.I will still try to see how it goes with them by dancing to their tune though I already have PayPal and Stripe gateway working on my site but I will like to make do with them since they can send my money to my domiciliary account which stripe currently don’t support.

  8. Let me add my story of being victimized by 2CO. I am the seller. 2CO is the heaven for people who intend to fraud. Why? Hear me out.
    I am in the business to establish good earning wordpress blogs and then sell them. I became the part of 2CO and that was my bad day. One person bought one of my site and told me that he will pay only on 2CO. He paid for the site and i handed over him all the details of website like files, hosting, passwords, domain etc.
    Once everything is handed over to him, after one week, i got an email from 2CO that they have made the chargeback. They also put the chargeback fee on my account. They blocked my account as my account went in negative after chargeback. They said if i want to challange then they will charge $15 more for that.
    They gave me reason that, the transaction was made using the credit card illegally. Means the card was actually hacked and then payment was made. Now i am in a state where i lost my money, and my asset which was my website.
    If you consider Google, Godaddy, Paypal, escrow, they act as bridge between buyer and seller, and confirms if there is any dispute. Here, they refund all the amount because they have mentioned it on their terms and conditions. No support whatsoever for the seller here.
    Now if you want to make a fraud. Ask your seller to come to 2CO, pay him there, get the product, and then ask your credit card company for chargeback giving the reason, that those transaction was false and you didnt made that transaction. So according to 2CO will refund automatically.
    But on the other side i found dozen of examples, where the buyer are complaining that they didnt get the proper product and asking for refund, but 2CO is telling them that they cannot refund.
    Who knows if they really refund the amount? Who knows if the refund is actually asked? After research i also found dozen of examples where people got the same email that they chargeback the amount because of illegale use of credit card.
    Now if the hacked card is used then whose job is this to check that? As seller, i know that someone wants to buy my product for the amount i want. If that person is buying by robbering even a bank, what wrong i done?
    They have few clauses mentioning in “Intenational seller agreement” nad based on those clauses, they simply dont protect, either seller or buyer. But at the same time they say that they have a department which checks and control frauds.
    Interestingly they give a reply, that they cannot protect every transaction. Now if you do your research you will find out hundred of complaints. Even there are groups who are planning to submit a petition against them as they believed that 2CO is actually involved in fraud.
    Simply stay away from 2CO. Do your research first. e.g. check few of the links like:
    http://www.complaintsboard.com/complaints/2cocom-c20818.html
    Fraud: http://www.minibb.com/forums/other-1/from-history-of-minibb-fraud-gabriel-candiani-5731.html
    http://www.sitepoint.com/forums/showthread.php?231092-Urgent!-2Checkout-Suspends-Account-amp-Demands-128
    http://www.webhostingtalk.com/showthread.php?t=387697

    Be Safe….

  9. i have used 2check for the last three months,have no chargwback.recently my account was closed and was told to wait for 90.will they release the payment after the 90

  10. These comments sound a bit extreme to me. 2CO is bad, but not as horrible as some of these comments make it sound. I have used both 2CO and PayPal for the past two years. PayPal has a much better user interface and costs less. Also, it’s very convenience when I have to write up an online invoice for complicated orders. But with regular sales, many customers see the word “PayPal” and get turned off for whatever reason. With 2CO I don’t see much hesitation. Since I’m not based in the U.S., I don’t see many good alternatives to 2CO. There probably are, but I haven’t found any so far.

  11. 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

  12. I so agree to this post most especially on items 3 & 4 they are providing useless services, I regret of letting our client signup for 2CO such a PAIN! This is my experience with their service: first they don’t have an API support for checkout purchase which is coming with major security issue, then the demo mode and the live mode are not exactly the same I did a hard time on setting up for the demo mode to make it work for the product purchase, it so work perfectly then but when I go to live mode I’m seeing an error!!! one of their support just said that the demo reflects what’s on the live mode but it’s so ironic seeing such error which is not shown during my development procedures this is giving us a VERY HARD TIME DOING WORKS and they were mentioning that they need documents get scanned before they could allow products to get sold over their site, then if you try to setup the product within their site you would be required to agree with some AFFILIATE S*** PROGRAM! if you read it carefully you’ll see alot of S***TY rules and policies that you’ll just get shocked in the end we switched to paypal which is more easier to get setup! I WILL NEVER EVER RECOMMEND 2CHECKOUT TO ANYONE OR ANY OF MY CLIENTS!

  13. Hey guys,

    If you just need to sell a few items on your site you can use something like Selz.com. Like Paypal you can use just one account and embed button or widgets on a number of different sites, but it’s a lot better looking that Paypal and much easier to use for buyers and sellers. You can also use it to sell on Facebook too.

  14. 2co is very very bad …… pay pal is best

  15. So where do we go from here??? I was in the process of signing up with 2checkout until I came across this post. How much do they actually collect for the application fee? Is this different from the $49 they request while signing up? Thanks for advice.

  16. Mendra Mushu says:

    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!

  17. indeed, 2CO are big sucks, piece of shit and Thieves.

  18. Your point 9 “They will shutdown you account anytime without notice and keep the setup fee”. is 100% although i saw this blog before I sign up I did not take much notice. There is nothing wrong with our transactions, one day morning I received an email “Upon review of your account by our upstream providers, it has been determined that your chargeback percentages exceed our allowable limits. It is for that reason that we regret to inform you that 2Checkout can no longer support your payment processing.

    Your account has been closed and has read-only access. You will still be able to review your sales information. The account will be paid out 13 cycles after your most recent sale. We hold payment for 90 days to allow time for any additional refund and chargeback activity.”

    Whereas we do not have any chargeback. I called them. I have wait almost 15 mts someone to answer.

    Then receive an email:

    “ello,

    Thank you for contacting 2Checkout. I apologize for any inconvenience you’ve experienced with your account.

    We have to hold our seller’s to the same standard to which we are held (1%). Your account uis currently at 2.90%. We wish you luck in the future.

    Feel free to reopen this ticket, or call for any additional assistance. We appreciate your patience as well as your patronage. For your convenience you can open a support ticket anytime.”

    I asked them to show me show me evidence and prove the 2.90%. No emails yet. My payout $600 + still with them, which they say will release after 13 weeks. This is absolutely sucks. DO NOT EVER JOIN THIS JUNK

    I advice do not go for

  19. We have a similar sitution where they have closed our account without any notice to withdraw the funds. We have lot of money stucked in 2checkout and we are worried now that are we really going to get our money back. They said payments will be made out after 90 days. Is it really going to be ?

  20. I was outraged by even the initial step of registration at 2CO. They charge for the just considering an application. I was mad after filling out all steps with s surprise like that. It’s ok to pay. But when someone offers to pay for any sort of promises — I see that they are just fraudsters. And I already saw that they will be tricking customers, ignoring and so on.

    But eventually, they sent me an invitation to take a part in a survey… ahahaha. I have send them a lot about how dumb those fucks is. ))))

    Even when I was filling feedback they were making me focus the textarea anytime I was trying to highlight text to copy that to a tranlation form to re-check what they ment by «Why didn’t we EARNED you as a customer» or something like that. (obviously Im not an english speaking person).

    So everyting arround 2CO was starting like a «fraudstery» and, at the end I found this page. Where I can see enough proofs of my guesses.

  21. 2co is worst. they closed our 7yrs old account with just one email that we had some chargebacks from our customers. When we asked for list of chargeback they were not able to reply as we knew we didnt had more than 1 chargeback in last 6 months.

    Now they are not even responding to us

    • They close many accounts, maybe they are just not telling you the reason, I had even zero refunds rate the reason they stated was changed terms with their upstream providers, the account also was 7 years old.

      What is affected if you had many customers with recurrent orders some of them may not come back at all, others will wait until the payment should go through so it is better to notify them through email.

      2checkout did pay the remaining balance after 90 days plus add two weeks, for those additional two weeks they give different reasons, like account review, or other even less plausible reasons.

      If you have any remaining balance you should be still worried, because if you search on the internet “2checiout account closed” – their routine and emails they send after account closure over time became are less apologetic or specific.

      My advice not to fight them, try to call them (not just ticket) and ask for the final funds release date, then confirm the date through a ticket so you have a record, then all you can do is to wait.

      If they fail to pay in time (since their policies towards closed accounts are shifting to the worse who knows what it may be in 3 months) search for 2checkout bbb and file your complaint there, fortunately I didn’t need that.

      Maybe it is incompetentcy of their employees, if you call them you may notice they are not polite kind.

    • Craig Edmonds says:

      2checkout totally sucks and they rip you off.

      I have (had) an account with them for 8 years, never had any chargebacks no issues with my account and processed ten of thousands of $ in that time. I am a registered legit US business for over 12 years and not a back alley fraudster.

      Recently I had TWO chargebacks for €15 each (first ones ever after thousands of transactions) and they advised me not to refund the chargebacks through the 2checkout control panel and let the chargeback system do its work. I followed the advice of 2checkout to the letter.

      In fact, I even contacted the customer who is a good friend of mine for many years and he had no ideas about the chargebacks!!!!!

      Yesterday however, out of the blue, I received an email from 2checkout saying my account was closed and all my funds were now on hold for 90 days.

      No warning, just my account is closed, we have your money and nothing you can do. Now they dont even reply to give me any reasons as to why.

      They have basically held onto all my funds for 90 days, charged me another $50 + the.

      Maybe its part of their business model…who knows, but its criminal really. charegbacks

      Here is the email…….

      Dear XXXXXX LLC,

      The following notes have been added to your account.
      Please review this information and take corrective action, if needed by: as soon as possible.

      Details: We regret to inform you that 2Checkout can no longer support your payment processing. Because of high recent chargeback activity, we were required by our upstream provider to close your account 1289898.

      Whenever an account is closed, we try to provide time to locate a different payment processor, but we were not given this option in this case and were forced to close your account immediately. Your account has been closed and has read-only access and you will still be able to review your sales information. The account will be paid out 13 cycles after your most recent sale. We hold payment for 90 days to allow time for refund and chargeback activity.

      We sincerely apologize for the inconvenience this may create for your business. Although we are no longer able to work with you, we do wish you the very best for your business going forward. If you have any questions, please contact us at risk@2co.com.

      WHAT DA F**K???

      DONT USE THEM UNLESS YOU ARE DESPERATE!!!

  22. I recently paid an application fee 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 until I 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!

    • That really sucks! Why would they keep the application fee if your application wasn’t accepted at all.

      I had a merchant account with them that I got for free because of a promo code that I found online. But I found out later that they charged my credit card $19 twice for their Monthly Service Fee. They said that the fee only applies if your transaction is below $100, I did not use my account yet because I still have my PayPal and I do not have the time to integrate 2Checkout. But on their website they say that they have no monthly fee(https://www.2checkout.com/pricing/). If only I know that beforehand then I should have cancelled my account immediately.

      So Ive paid them $38 for nothing. They tried to charge my card again today, Good thing that my card is already expired. So they sent me an email that stating that I have a negative balance with them.

  23. Very useful information, thank you. I had a 2Checkout account for a short while. When I opened the account they had a monthly subscription account fee. They continued to charge me even after I closed the account. Luckily I had email evidence that the account was closed and they refunded me. What they didn’t refund was the months that I unnecessarily paid a monthly fee after it had been abolished, felt like a sucker when I found out …. I wonder how many others are still paying the fee?

  24. I agree with you Satish! 2Checkout does suck and you can screw them over even more by using one of these promo codes to get a FREE account (I’m sure you would like to see this Satish): OPENCARTX2CO, ECWID232CO, DACLAUD2CO, WHMCS2345OP, VANISHLAND2CO, MAGENTO2C0, 2COFREE123, 2CHECKOUTPROM – I hope this helps!

  25. Thank for your Review. I’ve been thinking to signup with them but after read your review I know what to do.

  26. Can you suggest best option to accept payments for digital good in India for Indian merchants or any single alternative which can accept payment globally including India.

    Thanks…….

  27. I am just checking with 2CO and found this useful info. Thanks for reviews.

  28. Well guys, it is not the payment companies making these decisions. Sometimes they are directed by the banks to close accounts. If you selling drugs or things that are not permitted by vida or MasterCard they have to shut you down. The second thing is that Paypal appears to be cheaper but in reality once they add there additional fees it end up costing you more. So if you looking to sell products on line educate yourself and stop complaining without facts.

  29. I have been working with 2CO for almost two years now and never had any problems with them.
    If you strictly follow their rules about what you can and what you CAN’T sell your account will be perfectly fine.
    Unfortunately, many people don’t so leter they cry out loud on the sites like this.

    I agree, that PayPal take lower transaction fees, have no setup or withdrawal fee. I don’t agree that their support is bad. I get all the replies within one working day. If i send the support request on friday evening (their time) ofcourse, ill have to wait for monday morning, but that’s fine too. No one should work over weekends.

    And finally why i think that 2CO is still better for me, is that mine web shop is now open to entire world.
    PayPal is available to only around 70% of modern world countries and theres where PayPal sucks big time.

    • 2checkout changes the rules of the game when they want.

      You’ve been with 2checkout for 2 years only, if you note sellers who had their accounts closed were using 2checkout for 6+ years and had zero refund rate.

      The reason 2checkout gives is “changed terms with their upstream providers”.

      If you use them at least don’t accumulate funds, they close accounts suddenly without any warning.

    • From last 2 years i am trying to paying myresellerhome.com ,
      with my card and every time showing – – Do Not Honor —
      why 2co.com making fool to us and wasting our time ?
      Shame for 2co.com team
      see my order now
      myresellerhome.com
      Linux Reseller Starter – hakim.es (04/07/2014 – 03/07/2016)
      108 $

  30. 2checkout is expensive and very cumbersome to use. I have them on one of my retail sites and it’s been problematic. Setting up is painful. Nothing is intuitive and looks like it was done circa 1998. My real beef with them is they cannot process credit cards. All my 2checkout sales are paypal. Which of course, defeats their purpose. I can take paypal directly for half the cost. I setup 2checkout to take credit cards directly. Many people dislike paypal and wan t to pay with the CC directly. This is why I got 2checkout. However I rarely get any credit card sales. What I have gotten though – are complaints from people saying their credit card is being refused.
    2checkout is also misleading saying you can accept any currency. While yes you can sell items in any currency it will always be converted to USD in your account then converted back to pay you. So they take another 3% each way. In the end they collect about 15% in fees. Obviously no real business can pay these fees and survive. I think 2checkout exists to provide paypal to people who have been kicked off paypal.
    Needless to say I am dumping 2checkout. So far they have always paid me. No problems there. I just don’t find they are serving a purpose and are to expensive.

  31. I’ve never had a 2Co merchant account but I have had a bad experience with them (double dinged my CC). I have a PayPal merchant account and it was a breeze to set up. BTW, money bookers sucks as well.

  32. i also had bad experience with 2CO. First time, i thought it was better than PAYPAL, however, with 2 months sales, my account was closed for my location is in China. Their reason is that china has lots of copy products. What a fuck, however, I did not sell any products with brand name or logo on my products. If so , why is China in the country list when registering ?

  33. Had a decent relationship with 2CO for almost six years, then suddenly they closed my account because they said my material wasn’t upscale enough even though it met their criteria. Almost six years! Fortunately it wasn’t my primary sales tool. But yes, stay away from 2CO. They don’t even abide by their own rules.

    • This sucks even more if we are having subscriptions.
      Unfortunately all the payment gateways are same :(
      Only thing we can do is, use multiple options and hope for the best.

    • I had been with them for a decade and processed a few million dollars during this period. For the last few months, our sales via 2CO dropped to about 20-25 per month. We usually do not get many chargebacks, however for this recent few months, the chargeback rate was 1.4% that’s about 0.4% higher than that allowable limit of 1%. They shut down my account without any prior notice for such a marginal difference and all the history we had with them– by sending a blunt robotic email. What a way to treat a local customer who’s been with them for such a long time, since their early struggling days. WTG 2CO, well done!

  34. webmasterluxewebsites says:

    They both suxx but when Paypal closes your account you have no other alternative.

    Hope that both these companies get hacked and robbed soon.

  35. Abdul Hamid says:

    We’ve been working with PayPal for a couple of years and I must say they are just as bad. Their support may be prompt, but just as useless. I guess the payment industry is challenged by the huge demand.
    PayPal shut down my account without any notice due to false accusations and never allowed me to state my side.
    I strongly advise not going the PayPal way but rather stick with a higher level solution (2CO has many competitors).

    - AH

    • Yeah, there is a huge demand for a good and reliable international payment gateway.
      I agree that PayPal sucks to, but a little less than 2CO.

      Looking forward for Stripe in India, it looks promising. I get a feeling that they are user oriented, unlike PayPal and 2CO whose only goal seems to be making money.

    • My 2checkout account was closed suddenly after 6 years of zero fraud transactions, because of their changing terms with “upstream providers”.

      2checkout TOS:

      “We may terminate this Agreement at any time for any reason, or for no reason by providing you with a notice that the Agreement is terminated as of the date of the notice”.

      When trying to log on into your closed account all I saw was “Access denied. Account ….. has been closed”, it took me two weeks to restore read access.

      Even if you change the payment gateway and you had recurrent orders it is likely not all users will renew payments, so this value is just erased when the 2checkout account has been closed.

      2checkout advertises a lot, on many online newspapers sites, be careful and don’t fall into the same trap.

      They just act arbitrary.

      The main problem with 2checkout was sometimes valid orders are rejected by a reviewer, then on a number of occasions I had the users contacting me and they making transaction through Paypal.

  36. I’ve been thinking to use PayPal gateway to integrate with my business website, now your review points helped me to confirm that. Thanking you.

    BTW: Do you know any best WordPress plug-in to integrate Paypal, because I tried all the internet and not found any good one, moreover this stuff is new for me.

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