2checkout follows a flat-rate, or a pay-as-you-go pricing model. This means, there are no monthly or annual fees, instead, you'll be paying per transaction. 2checkout's cheapest plan, 2Sell has a rate of 3.5% plus $0.35 for every successful sale you make, and is the only plan that is applicable to Shopify. It allows you to sell any type of product internationally as well as gain access to recurring billing.
While 2checkout charges a bit higher compared to other external gateway options for Shopify, there are several factors and features 2checkout has to offer that its cheaper competitors do not have. For example, 2checkout enables you to process 87 currencies in 15 languages, allowing you to sell to more than 200 countries. If you wish to learn more, we have discussed in a previous article how both TeleCheckout and 2checkout can help in running your business better. What's more, not only do we provide amazing features, but help in reducing your overall costs of running an online business as well.
2checkout does not charge any recurring fees and only charges a few extra on top of their flat-rate fees. They have no cancellation fee, set up fee, and hidden charges, making it the perfect option for merchants who are looking for low-commitment, low-risk payment gateways. So, what other charges can you expect from using the service?
Like all other payment gateways, 2checkout also has a chargeback fee. Chargebacks are payment reversals applied to a customer's paying card after they have successfully disputed the charge. 2checkout's chargeback fees start at $15 for every transaction if your fallback ratio falls anywhere between 1%-2%, $20 if the ratio is 2%, and $45 for every transaction if your fallback ratio is higher than 2%. Keeping this in mind, it's always best to keep your chargeback ratio under 1% to prevent higher fees.
Cross-border fees are a form of credit card processing fee that is applied whenever you accept payments outside of your home country. However, if you're registered from any of these countries, you are exempted from the cross-border fees. Otherwise, fees for accepting offshore payments start at 2%, but this may vary for countries that are considered high-risk for fraudulent transactions.
Currency Conversion Fee
On top of the daily bank exchange rate, currency conversion incurs a fee of 2-5%.
Shopify's External Gateway Processing Fees
Accepting payments through Shopify Payments is free of charge. Unfortunately, this option is not available for everyone, and so a large number of merchants employ external gateways to accept and process payments for their stores. Depending on your chosen plan, external gateway processing fees may be 0.5%, 1.0%, and 2.0% for Basic Shopify, Shopify, and Advanced Shopify respectively.
As seen in the table above, external gateway fees are eliminated when using TeleCheckout.
Keeping this in mind, if you have the Basic or mid-tier Shopify plan, opting for our Standard Plan replaces Shopify's external gateway fee with our own transaction fee of 1%. Basically, this means that your costs for every transaction are reduced or stays the same while you also get to enjoy the benefits of a one-page checkout. On the other hand, businesses and enterprises that have monthly sales of over €33,500 (around $40,000) are encouraged to opt for the Premium TeleCheckout Plan. This way, fees for every successful sale are reduced to 0.5%.
In addition to helping you out with fees, setting up 2checkout as a payment gateway via TeleCheckout also allows you to implement a Post Purchase OCU and several other features that are designed to increase your sales, boost average order value, and reduce cart abandonment.