Processing e-Commerce Payments Using Google Checkout

Advantages of Google Checkout

Since Google Checkout is part of Google, the merchant can attract more relevant customers through the integration with search engine results. If the merchant is an AdWords advertiser, a Google Checkout badge will appear with your advertisement, highlighting your ad among the others. For some, this badge is sufficient reason to offer Google Checkout, at least as an option.

There are no fees charged when transferring your Google Checkout balance into your bank account. Google Checkout processes American Express, Discover, MasterCard, Solo, Visa and Visa Electron. Google Checkout offers features that PayPal can't, by taking advantage of its integration with the Google search engine, making it easier for merchants to advertise, market and sell their goods. Google Checkout charges 1.9% to 2.9% (depending on sales volume) + $0.30 per transaction.

For fraud protection, Google Checkout guarantees reimbursement only if the claimant provides a tracking number, or other proofs of delivery, with full shipping address. For transactions of more than $250 value, proof of delivery with the buyer's signature and full shipping address must be provided.

Disadvantages of Google Checkout

Because Google Checkout is new to the payment processing industry (since 2006 – PayPal started in 1998), it will be hard for them to penetrate PayPal's existing market of 73 million active accounts. According to a Nielsen / Net Ratings survey in May 2007, there are 33 PayPal website visitors for every Google Checkout website visitor.

Google Checkout's user page is said to be not as friendly as PayPal's. In Google Checkout's interface, it can be hard to find the buyer's email address or invoice number instantly. Here in the U.S., where EBay culture is so popular, Google Checkout is still a more unusual way to order. For new merchants Google Checkout is also slower, as it takes ten business days to process the payout. Before being qualified for the standard 2-day payout, Google Checkout has to check if your account is in good standing for 60 days.

PayPal

PayPal is popular, convenient and flexible when it comes to offering payment options to your customers. The biggest disadvantage to PayPal is that it does not offer a seamless checkout experience – the customer bounces betwen the merchant site and PayPal's site.

Google Checkout

If you are an AdWords advertiser, a Google Checkout badge will appear with your advertisement, highlighting your ad among the others. For some, this badge is sufficient reason to offer Google Checkout, at least as an option. Fees are relatively low, but there is no live support.

Credit Cards

The advantages of accepting credit cards are the convenience it gives to online shoppers and faster processing of transactions. The disadvantages in accepting credit cards are higher transactional costs and the need to provide security measures.