Saturday, October 16, 2021
HomeB2B eCommerce2Checkout vs PayPal in 2021 – Which is Better?

2Checkout vs PayPal in 2021 – Which is Better?

Payment gateway software solutions have become one of the most critical tools in the world of online payments. Payment gateways help in processing, verifying, and accepting/declining direct payments on behalf of merchants using secure internet connections. While there are plenty of payment gateway solutions available, 2Checkout and PayPal are among the most prominent ones. PayPal is the go-to choice for many to receive money from foreign transactions. However, due to some limitations and restrictions, people have started looking for alternatives. 2Checkout is a wonderful option for merchants, e-commerce owners, freelancers, etc. since it integrates well with tools like Bigcommerce, Shopify, and more.

With that said, in this post, we are going to put light on 2Checkout vs PayPal comparison and discuss how these two payment gateway solutions differ from one another.

Let’s get started.

2Checkout vs PayPal: Top Features Compared

While both the gateways work on the same principle, 2Checkout and PayPal differences are huge. The fees deducted for processing the transaction, the time period when the payment will be received, the user interface, features, etc. all come into the play when differentiating between the two popular payment gateways.

Several services and plans are offered through 2Checkout and PayPal. The table will guide you through the selection process.

With Online Invoicing, contractors and freelancers can send out quick invoices for services they performNo responsibility or charges for fraudulent or disputed charges (transactional disputes have a charge attached to them)
The unique ‘Bill Me Later’ feature of PayPal offers no interest financing to customersWith 2Checkout, you can use multiple payment methods like debit card, credit card, and even PayPal
PayPal allows you to set up things like recurring payments with easeIf you have an e-commerce site, 2Checkout can process 87 different currencies in 15 languages. That means it connects you to over 180 countries for worldwide selling
Its Virtual Terminal enables you to collect phone and mail orders only at just $302Checkout allows you to integrate over 100 shopping carts without having the need for coding knowledge. The primary integrations include WooCommerce, Bigcommerce, and Spotify
With PayPal Here mobile app, you can use the service, collect and send the payments on the goYou can use its mobile responsive checkout experience that allows your customers to purchase items while on their smartphones or tablets
PayPal offers PayPal Payments Pro feature to website owners using which they get hosted checkoutIt comes with Advanced Fraud Protection feature that prevents malicious people from taking advantage of your business
PayPal Payments Standards is a basic payment processing plan for companies that don’t accept credit card payments. It comes extremely handy when payments are being delayedIt comes with two checkout options. The hosted checkout option supports lots of traffic and allows you to process a large number of orders. The inline checkout option is for smaller merchants that provide a seamless shopping experience
The PayPal Express Checkout is a simple add-on for companies that accept credit card paymentsThe platform offers recurring billing option so that you can charge your customers on a monthly or yearly basis

2Checkout vs PayPal: Ease of Use

When it comes to ease of use, both the platforms offer some incredible integrations and UI features.


  • Implementation of 2Checkout is incredibly simple thanks to the payment API libraries available in cURL, Java, .NET, Ruby, Python, and PHP
  • The most popular open-source carts can easily integrate with this platform. That is, Magento and WordPress carts have no problem integrating with 2Checkout
  • In order to insert the payment gateway on your website, you are provided with bits of code. And managing your payments after that become incredibly simple
  • Moreover, you also receive quick integrations with the most celebrated online retail platforms like Bigcommerce and Shopify
  • 2Checkout’s dashboard and website are easy to navigate, with well-organized and ‘ready for customization’ developer tools


  • PayPal, like 2Checkout, is insanely easy to use. That is, you can grab the PayPal button and start selling or doing business from any website
  • Even if you don’t have an e-commerce website, the PayPal button will take care of everything for you
  • Using the PayPal mobile app, you can send and receive payments on the go. The app is as smooth as Square, and you can use its free swiper and plug into your smartphone’s jack for card payments
  • Reporting is another feature of PayPal that enhances its ease of use. That is, whether you collect payments through a mobile interface or online, all the transactions will be collected and organized into one place
  • You can manage your PayPal account using a browser dashboard, and you can even export the reports to analyze and make predictions for the months and years ahead

2Checkout vs PayPal: Fee Deduction

The fees and prices are listed on their respective sites. While there are many, we have tried to cover the most important ones to determine the principle2Checkout and PayPal differences.


Depending on what type of business you are running, the platform offers a flat-rate pricing model. For example, domestic and local stores will have a different rate than international ones. Moreover, there are some e-commerce add-ons to consider in your fees in case if you plan to avail of the subscription plan.

In general, 2Checkout offers transparent pricing, and there are no hidden charges or monthly fees attached. The pricing for 2Checkout has drastically changed over the years, and currently, it has numerous plans. While these plans are expensive than PayPal, it depends on your situation.

Here is what you can expect-

  • 2Monetize Plan: For selling digital items internationally. It comes with a rate of $0.60 + 6% per sale
  • 2Subscribe Plan: For selling subscriptions. It comes with a rate of $0.45 + 4.5% per sale
  • 2Sell Plan: For selling products/services on a global scale. It comes with a rate of $0.35 + 3.5% per sale

In addition to these, if you are using the e-commerce extensions, there are different charges. Some of its e-commerce extensions include:

  • 2Service – for selling professional service
  • 2Partner – for channel distribution and more automation
  • 2Comply – for managing taxes
  • 2Bill – for handling complex subscription sites
  • 2Conver – for boosting conversions

Things to keep in mind when it comes to 2Checkout pricing

  • On top of the daily bank exchange rate, currency conversion comes with a fee of 2-5%
  • In case you are accepting payment from people outside the US, a 1% service charge will be applied. This service charge differ based on the country you are operating in
  • You can choose in whatever way you want to receive your payouts
  • In case of any chargeback, you will be charged $20. 2Checkout is quite vigilant when it comes to preventing fraudulent chargebacks
  • There are no hidden charges like for recurring billing or fraud protection
  • There are no setup fees or monthly charges, making it a suitable option for freelancers and those who want to spend just a little to get started
  • In case, you sign up for the Enterprise plan, you can get a volume discount


Since PayPal is one of the oldest payment gateways, most people are aware of its pricing option. Let’s have a look at that.

  • For chargebacks, you will have to pay a fee of $20
  • For virtual terminal transactions, the rate of $0.30 + 3.1% per transaction is charged
  • In-Store and Keyed-in Mobile transactions are charged at $0.15 + 3.5 per transaction
  • Swiped mobile and in-store transactions are charged at 2.7% per transaction
  • For web transactions, you will be charged with $0.30 + 2.9% per transaction

Things to keep in mind when it comes to PayPal pricing

  • If you are a small company with transactions under $10 apiece, PayPal has a special plan that goes for $0.05 + 5% per transaction
  • If you are taking up the PayPal Payment Pro plan, it requires a monthly payment. That means you will have to spend at least $30 every month for additional features and services

Related: Skrill review 2021: Is it safe and worth to use it for your business

2Checkout vs PayPal in terms of Security

Since both the payment gateway platforms are used by millions of people worldwide, they have to be safe and secure from malicious hackers and fraudulent activities.

If you take full advantage of the security measures 2Checkout and PayPal offers and follow the suitable security protocols like using two-factor authentication, you can rest assured that your transactions are safe on these platforms.

For instance, 2Checkout is PCI Level 1 certified. This is the highest level of security certification a company can have. It also comes with a 3-tier defense strategy that helps detect fraud in real-time.

How to setup 2Checkout?

If you are considering signing up with 2Checkout and start receiving payments, here’s a quick guide to getting started with the payment gateway.

  • Log into 2Checkout by creating a 2Ckeckout Account
  • Go to Account Tab > Site Management subcategory
  • Turn off the Demo Mode during Live Sales
  • Make sure your store’s currency matches your 2Checkout Pricing Currency
  • Go to Direct Return and choose Header Redirect. You will have to update this URL every time you change your domain on 2Checkut.
  • Email your new URL at [email protected]
  • Type your password (Secret Word)
  • Hit the Save Changes button
  • 2Checkout admin will manage all the activities related to any order created, invoice, fraud status, or any refund


Based on the thorough comparison we have provided, it will be easier for you to choose the payment gateway based on your requirements. If you have any concerns regarding the 2Checkout vs Paypal, feel free to ask us, or you can directly go to their website for additional information.

Alf Alferez

Author: Alf Alferez

Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on [email protected]


(3 Reviews)
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on [email protected]

Most Popular

0/5 (0 Reviews)