My experience with 2CO has been somewhat mixed.

My company (not FileShoppe) have used 2CO for a number of years and for the most part have had no issue. To this day 2CO is an option for our users to pay by.

That being said, their fraud detection is poor. They have allowed thousands of dollars worth of fraudulent transactions go through and still charge their merchant 'charge back' fees even when the charge back is not disputed. I understand that they themselves may be hit by these charges but considering the high transaction cost of 5.5% + $0.45, you would think they could cover such costs when, to be perfectly honest, it is just as much their fault when THEY authorized the fraudulent transactions. The number of times we have determined the transaction to be fraud and cancel/refund ourselves is much higher than that of 2CO.

That being said, Paypal is worse. We have had charge backs 3 months after the fact. We sold a domain for HK$100 (approx US$13) only to have the customer charge back after 3 months. Paypal do not offer you the opportunity to refund so you have no choice but to absorb the charge back fee. Paypal take back all $100 without refunding their own fees, and then slapped on an additional HK$75 (apporx US$10) on top!

It is ridiculous.