Google Checkout (PayPal Killer?) versus PayPal - A Review

By Angsuman Chakraborty, Gaea News Network
Thursday, June 29, 2006

Google Launched Google Checkout today. It appears to be a surefire PayPal killer.

Google Checkout like PayPal Website Payments Pro provides developer API to integrate third party shopping carts with Google Checkout. The API looks much more capable (like archiving) than PayPal at first sight and comes with good examples.

Google Checkout like PayPal is free for consumers. It charges the merchant. However the fees are significantly less than PayPal.

PayPal Website Payments Pro charges $20.00 USD monthly fee. The transaction fees are 2.2% to 2.9% + $0.30 USD.

In Google Checkout for every $1 you spend on AdWords, you can process $10 in sales for free. For example, if you spent $1,000 on AdWords last month, this month you can process $10,000 in sales at no cost. The more you spend to promote your business through AdWords, the more you save on transaction processing fees with Google Checkout. This is a nice bonus for big AdWords merchants.

If you exceed your free transaction processing for the month, or you don’t advertise with AdWords at all, you’ll only be charged 2% plus $.20 per transaction. No monthly fees.

Google Checkout provides comprehensive Dashboard for order processing.google checkout

Checkout proactively identifies and filters out fraudulent transactions, and under our Chargeback Resolution policy, Google evaluates all chargebacks you receive and, whenever possible, fights them on your behalf.

Some transactions are also covered by our Payment Guarantee policy: if you get a chargeback on an eligible transaction and give us all requested documentation and information within 10 days of the request, we’ll reimburse you within a week.

It provides nice integration with AdWords allowing buyers to directly purchase from AdWords advertisement.

What are the limitations?
Merchants with a U.S. address and bank account can process transactions through Google Checkout. Buyers with a U.S. billing and mailing address can make purchases through Google Checkout. In shoort Google Checkout is currently US only service.

Overall I think Google Checkout is a surefire PayPal killer in the long run, especially when it expands internationally.

PS. If you liked this story please consider digging it.

Discussion

Senthil Prabhu
March 27, 2010: 2:57 pm

I had order a camera from Tigerdirect and payed it though google checkout (My most stupid decision) and accidently gave in a wrong phone number.

Right after the order was placed, i logged in a request with google to update the correct phone number. Seems it was not in their procedure to update the details after the order has been placed and their suggestion was cancel the order and reorder. But there is no option in google checkout to cancel the order. So, i had requested for the procedure for order cancellation and the timeline for my money to be remitted back to my bank account.

Meanwhile, i had called up tiger directly and they were happy to update the phone number to the order and even the credit check was completed.

NOw the shocking mail i received from google checkout is on the cancelation of order and shitty thing is i have clue clue of my money. It has not remitted back to my bank account.

I have no idea to contact the google on phone to have a physical complaint and their response in person.

Lesson for everybody+ Never deal with Google, when you have to pay money. Google is good for free (Search, maps)

March 11, 2009: 11:27 pm

I take it you’ve heard that Google have increased their fees to be the same as Paypal. Baring in mind that you get a discount the higher volumes you put through either system, is there any advantages in continuing to offer bother (as if you just offer one, you’ll have higher volume and save transaction fees? (And considering Paypal has larger coverage and is easier to implement, and as my blog post discusses, can actually be cheaper than Google on cross-border fees: perhaps the question is “why bother with Google Checkout at all?”)

October 23, 2008: 4:14 am

Google checkout is great but still paypal has more advantage like they are accepting payment from 55 countries and google only from two.


ken
June 2, 2008: 2:18 pm

Anything is better than Paypal. Paypal offers no protection to the sellers, I know many people lost money and goods because of Paypal Charge Back Reverse Scam. Paypal also holds payments in your account for many stupid reasons such as “if you are on Ebay less than 6 months, and item is sold over $100″ along with many many more rules to hold your money, while Paypal makes millions of dollars of interest every day on the holds. So use Google Checkout or Moneybookers if you are a seller. You will be much safer!


Matt
April 29, 2008: 10:47 am

I’m pretty disappointed in GCO as an end-user actually. I ordered from a place, and due to a bug where I pushed “back” on the browser my order was submitted, except it was under the wrong address. Because I used GCO, the place refused to change the shipping address, and I can only place a new order. I asked GCO to intervene and contact the seller with my correct shipping addressed but they just give me a canned nonanswer about how to use GCO.

The place says my only option is make a new order, but the camera I’m ordering is no longer at the sale price that I originally ordered it for, so I’d be $250 (the difference in sale price)


Scott
April 5, 2008: 2:52 pm

As soon as Google gives me the ability to process the credit card orders myself instead of emailing my customers, then I’ll sign up (I sell services and not on a website). I’m not going to wait around on my customers to get the whim to pay me. Until Google fixes that, I’ll continue using PayPal’s Virtual Terminal.

March 30, 2008: 8:42 am

Just to correct the misinformation above, the user experience with Google Checkout is not the same as the experience with PayPal Payments Pro (Direct Payment). In the latter, the user never has to leave your site. With Google Checkout the user always enters their credit card information on Google’s web site, not yours, regardless of the integration mechanism you’ve chosen.


Dan
August 16, 2007: 5:36 am

Google Checkout is now available for UK businesses. We’re considering migrating accross from paypal.


juan ricardo flores navarro
August 14, 2007: 10:09 am

con quien estoy?

July 19, 2007: 11:14 am

I am so grateful to see there is finally a real alternative to PayPal. I have not been a PayPal fan & find PayPal to be only viable for small ticket items, subscriptions or ebay transactions. It is too hard to get your money out of PayPal - who wants a monthly limit to the amount of money you can withdraw or be forced to use a debit card to buy other stuff??? Who wants the hassle of slowly withdrawing your money?

I love the incentives for AdWords users! I have been using AdWords to effectively grow my business over the past few years. Now Google is rewarding me for services I already use… it is a win win. I continue to grow my business & get to process my orders through Google Checkout. It appears I may have to FIRE my merchant account provider now due to the fees they charge. This is a HUGE savings annually.

I have begun to use Google Checkout for my mid-ticket items & it seems flawless thus far!

Thank you Google!

October 9, 2006: 9:26 am

I missed Matt’s comment before. They do allow complete website integration as Big J pointed out.


Big J
October 9, 2006: 4:45 am

In response to Matt, I believe they have that, it’s called “Website Integration!”

September 11, 2006: 9:09 am

[...] How to reliably accept payments online? You can signup for a free PayPal account which allows you to accept payments online. I would recommend setting up a business account. They charge 2.9% + $0.30 USD for transactions below $3000. Another reliable option (for US merchants only) is using Google Checkout (review). [...]


Matt
August 28, 2006: 4:18 pm

I just stumbled across this post while comparing Paypal vs. Google Checkout.

I notice you quote PayPal’s monthly fee for Pro, but Google Checkout doesn’t allow you to process payments entirely on your own site, right? So you should probably compare it to PayPal Basic. If Google Checkout had an option that didn’t require my customers to go to google.com for a couple pages, for no monthly fee, it’d be a no-brainer. Here’s hoping they add that.

July 20, 2006: 7:09 am

[...] But far from being only a beaut of a concept for AdWords users… if you don’t advertise with AdWords at all, you’ll only be charged 2% plus $.20 per transaction. No monthly fees. (Taragana) [...]

July 4, 2006: 3:10 pm

Nice article about Checkout! Thanks for providing this :)

The only two things I’m currently missing in Checkout in Adsense account support (buy stuff from the Admoney you made) and European Checkout!

(see the Terms, its currently US only)

July 3, 2006: 1:02 am

[...] Angsuman compared Google Checkout to PayPal. [...]

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