Avangate (2Checkout legacy)

What is 2Checkout

2Checkout, now a Verifone company, is an all-in-one monetization platform designed to help businesses sell their products and services globally. Founded in 2006, its core purpose is to simplify the complexities of digital commerce. It functions as a Merchant of Record (MoR), which means it takes care of not just payment processing but also global tax management, compliance, fraud prevention, and billing. This allows businesses to focus on their products and marketing instead of administrative tasks. 2Checkout is particularly popular among companies that sell software, digital goods, and subscription-based services, offering a modular platform that can be adapted to a business's specific needs as it grows.

2Checkout Features

2Checkout provides a comprehensive set of features through its modular product suite:

• Global Payment Processing: Accept payments from over 200 countries and territories. It supports major credit and debit cards, PayPal, and dozens of local payment methods, making it easy to sell to a worldwide audience.
• Merchant of Record (MoR) Model: 2Checkout handles global sales tax and VAT calculation, collection, and remittance. It also manages local compliance and regulations, reducing the legal burden on merchants.
• Subscription Management: For businesses with recurring revenue models, it offers tools to manage subscriptions, automate billing, handle upgrades or downgrades, and reduce customer churn with dunning management.
• Digital Commerce Tools: The platform includes customizable shopping cart templates, conversion rate optimization tools, and A/B testing to improve the customer checkout experience.
• Affiliate Network: Access the Avangate Affiliate Network to recruit affiliates who can promote your products and drive more sales.
• Risk Management and Fraud Prevention: An advanced system that analyzes transactions to identify and block fraudulent activity, protecting your revenue.
• Reporting and Analytics: A detailed dashboard provides insights into sales, revenue, customers, and subscription metrics to help you make informed business decisions.
• Global Payouts: Receive your earnings in multiple currencies through various payout methods like wire transfer, PayPal, or Payoneer.

2Checkout Pricing Plans

2Checkout offers several product packages tailored to different business needs. Pricing is typically based on a percentage fee and a fixed fee per transaction, which varies by plan and sales volume.

• 2Sell: This plan is for businesses that need to process online and mobile payments from customers around the world. It includes global payment processing, a customizable checkout experience, and integration with popular shopping carts. It is ideal for merchants selling physical or digital goods who want to expand internationally.
• 2Subscribe: This package is designed for subscription-based businesses. It includes all the features of 2Sell plus advanced tools for recurring billing, subscription management, revenue recovery, and customer retention.
• 2Monetize: This is the all-in-one solution for businesses selling digital goods globally. It combines all the features of 2Sell and 2Subscribe and adds the full Merchant of Record service, handling global taxes, invoicing, and compliance. This plan is best for SaaS and software companies that want to offload all commerce-related complexities.

2Checkout Free Plan

2Checkout does not offer a traditional free plan. As a payment processor, its business model is based on charging fees for successful transactions. There are generally no monthly or setup fees for the standard plans, so you only pay when you make a sale. There is no free trial period; instead, you can sign up, integrate the platform with your website, and begin processing payments once your account is reviewed and approved.

How to use 2Checkout

Getting started with 2Checkout involves a few key steps:

1. Create an Account: Go to the 2Checkout website and sign up for an account. You will need to provide information about your business.
2. Choose a Plan: Select the package that best fits your business model: 2Sell, 2Subscribe, or 2Monetize.
3. Complete the Application: Submit the required documentation for the underwriting process. 2Checkout will review your business to ensure it complies with their policies.
4. Integrate with Your Site: Once approved, you can integrate 2Checkout. This can be done using their direct APIs, hosted carts, or through pre-built plugins for platforms like WooCommerce, Shopify, or Magento.
5. Configure Your Settings: In the 2Checkout Merchant Control Panel, set up your payment methods, currencies, checkout design, and other preferences.
6. Go Live: After testing the integration, you can start accepting payments from customers worldwide. You can then use the control panel to manage orders, subscriptions, and view reports.

Pros and Cons of 2Checkout

Pros

• All-in-One Solution: Combines payment processing, subscription management, and Merchant of Record services in one platform.
• Extensive Global Reach: Supports a vast number of countries, currencies, and local payment methods.
• Handles Taxes and Compliance: The MoR model is a major benefit for businesses selling internationally, as it removes the headache of managing global sales tax and VAT.
• Specialized for Digital Goods: Excellent features for SaaS, software, and other digital product companies.
• Flexible Integrations: Offers various integration options, including APIs and plugins for major e-commerce platforms.

Cons

• Higher Fees: Transaction fees can be higher compared to simpler payment gateways like Stripe.
• Strict Approval Process: The underwriting and account approval process can be lengthy and strict.
• Complex for Beginners: The platform's extensive features can be overwhelming for new users or small businesses with simple needs.
• Customer Support: Some users report that customer support response times can be slow.

2Checkout integrations

2Checkout offers a wide range of integrations to connect with popular e-commerce platforms, CRMs, and business tools. These integrations help automate workflows and create a seamless commerce experience.

• Shopify Integration: Connect 2Checkout as a payment gateway in your Shopify store to process payments globally.
• WooCommerce Integration: A dedicated plugin allows you to easily integrate 2Checkout with your WordPress and WooCommerce site.
• BigCommerce Integration: Add 2Checkout to your BigCommerce store to enable international payment methods.
• Magento Integration: Use the official extension to connect your Magento store with the 2Checkout payment platform.
• WHMCS Integration: A popular choice for web hosting companies to automate billing and payments.
• Salesforce Integration: Sync sales and customer data between 2Checkout and Salesforce for better customer management.

Integrations are typically managed by installing a plugin or extension from the respective platform's marketplace and then configuring it with your 2Checkout account credentials.

2Checkout Alternatives

• Paddle: A direct competitor that also operates as a Merchant of Record. Paddle is heavily focused on the SaaS and software industry and is known for its simple, all-inclusive pricing.
• FastSpring: Another strong alternative that is also a Merchant of Record for digital goods, software, and SaaS. It offers similar features to 2Checkout's 2Monetize plan.
• Stripe: A powerful and developer-friendly payment processor. While it does not act as a full MoR by default, it offers Stripe Tax to help with tax calculations. It is highly customizable but requires more setup for global compliance.
• PayPal: A globally recognized payment platform that is easy to set up. It is a good option for simple payment processing but lacks the advanced subscription management and MoR features of 2Checkout.

2Checkout API

Yes, 2Checkout provides a comprehensive set of APIs that allow developers to create custom e-commerce experiences. The API lets you manage the entire commerce lifecycle, from placing orders and managing subscriptions to processing refunds.

To get an API key, you must have an approved 2Checkout merchant account. The keys can be generated within the Merchant Control Panel under the Integrations -> Webhooks & API section. You will need to enable API access and generate your secret keys there.

Here is a basic cURL example of how to call the 2Checkout API to create an order:

curl -X POST https://api.2checkout.com/rest/6.0/orders/ \
  -H 'Content-Type: application/json' \
  -H 'Accept: application/json' \
  -H 'X-Avangate-Authentication: code="YOUR_MERCHANT_CODE" hash="YOUR_HMAC_HASH"' \
  -d '{
    "Country": "USA",
    "Currency": "USD",
    "Customer": {
        "Email": "customer@example.com",
        "FirstName": "John",
        "LastName": "Doe"
    },
    "Items": [
        {
            "ProductCode": "your_product_code",
            "Quantity": 1
        }
    ],
    "PaymentDetails": {
        "Type": "EES_TOKEN",
        "Currency": "USD",
        "PaymentMethod": {
            "EesToken": "customer_payment_token",
            "RecurringEnabled": true
        }
    }
}'

For full details, developers should consult the official 2Checkout API documentation on the Verifone developer portal.

2Checkout Affiliate program

2Checkout operates one of the largest affiliate networks for digital goods, known as the Avangate Affiliate Network. This program allows affiliates (publishers and marketers) to earn commissions by promoting products from thousands of software and digital goods vendors who use the 2Checkout platform.

• Commission Rates: The commission rates are set by each individual merchant (vendor) and can vary widely, typically ranging from 10% to 75% of the sale price.
• How to Join: You can join the program by signing up as an affiliate on the Avangate Affiliate Network website. The registration is free. Once your account is approved, you can browse the marketplace of products, find offers you want to promote, and get your unique affiliate links.
• Getting Paid: Affiliates are paid by 2Checkout on a regular schedule (e.g., monthly), provided they meet the minimum payment threshold. Payouts can be received through various methods, including PayPal, wire transfer, and Payoneer.