Why I No Longer Recommend Google Checkout

Today, I received the following email from Google regarding their checkout service, which allows businesses like my own to receive credit card payments into our bank accounts:


We’re writing to let you know that on 5 May 2009, Google Checkout’s transaction processing fees will be changing. We will be transitioning from our 1.5% plus £0.15 per transaction rate to a new tiered fee structure, where the rates will vary depending on the amount of your monthly sales processed through Checkout. The rate you will be charged beginning on 5 May 2009 will be based on your sales processed through Checkout during the month of April 2009. Each month thereafter, we’ll continue to use the prior month’s sales volume to determine your transaction processing rate. For more details about the new rates, please visit https://checkout.google.com/seller/fees.html?hl=en&gl=GB

We will also be discontinuing the AdWords free transaction processing promotion on 5 May 2009. Any AdWords transaction processing credits accrued during April 2009 will be applied towards transactions that occur on 1-4 May 2009.

Fees are the same for all payment types (Visa, MasterCard, UK Visa Electron, UK Maestro, Solo) and there are still no monthly, setup, or gateway fees. For cross-border transactions, there will be an additional 1% fee assessed per transaction. To learn more about Google Checkout fees, please visit https://checkout.google.com/seller/fees.html?hl=en&gl=GB

So in short, the fees that Google are charging small sellers like myself who don’t process more than £1,500 in sales with them per month have gone from 1.5% + 15p to 3.4% + 20p, which is exactly the same as PayPal charges. To add insult to injury, they are also withdrawing the AdWords free credit (for every £1 you spent on adwords, £10 worth of transactions where processed free) and they are adding an extra 1% for any cross-border transactions. As we do a lot of sales outside the UK, this makes Google Checkout even more expensive.

Many users are in outrage at the change, and this will most likely cost them dearly. The only winners here are the large companies processing over £55,000 a month with Google Checkout. I am voting with my wallet, and will now no longer suggest Google Checkout as our preferred payment option.

So if you’re looking for a payment solution now, I highly reccomend PayPal, lower fees, telephone support and much better brand recognition.

6 Responses

  1. Michael says:

    The page where so many people where complaining about the increase in rates no longer exists.

    Not Found
    The requested URL was not found on this server.

    Weird, isn’t it?

    Google = American Greed!

  2. Michael says:

    Never mind… its back. Does not change the fact that Google is still Greedy – maybe they should change the name?

  3. Richy C. says:

    Previously, I was recommending Google Checkout due to the lower fees and I have spent the last few months changing shopping cart systems to one that supports Checkout so I could drop Paypal… Now it looks like the time is wasted as I can’t see any reason why I should stick with Google Checkout (if anyone can think of a reason – please let me know!).

  4. Mike says:

    With PayPal you also get telephone support but with Google checkout there is no support but the fees are the same, for this reason I will probably switch back to PayPal.

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