Google Checkout Adjusts Pricing Upward – Matching PayPal

Scott Loftesness

March 12, 2009

Yesterday, Google Checkout announced that it was changing its fee structure beginning May 5 – eliminating the previous credit that Google AdWords customers got that reduced their Google Checkout fees.

Instead, the new Google Checkout fee structure essentially parallels that of PayPal’s – a long-standing fee structure that the online payments leader has had in place for many years.

Below are the two fee tables:

Monthly Sales Google Checkout
fee per transaction
Less than $3,000 2.9% + $0.30
$3,000 – $9,999.99 2.5% + $0.30
$10,000 – $99,999.99 2.2% + $0.30
$100,000 or more 1.9% + $0.30
 
Monthly Sales PayPal fee
per transaction
$0.00 – $3,000 2.9% + $0.30
$3,000.01 – $10,000 2.5% + $0.30
$10,000.01 – $100,000 2.2% + $0.30
> $100,000 1.9% + $0.30

Google Checkout continues to only support funding via the four major payment card brands for US sellers: Visa, MasterCard, American Express and Discover. Unlike PayPal, Google Checkout continues not supporting funding directly (via ACH) from checking accounts.

Both Google Checkout and PayPal have a 1% surcharge to US sellers on all cross-border transactions.

What about Amazon Checkout (or Amazon SimplePay)? You guessed it – the fee structure is essentially the same – starting at 2.9% + $0.30 per transaction in the lowest tier and going down to 1.9% + $0.30 per transaction for monthly sales over $100,000. Sound familiar? Amazon allows buyers to pay using Visa, MasterCard, Discover, American Express, JCB, or Diner’s Club credit cards.

Amazon does have a subtle difference – those fees apply to transactions of $10.00 or more. For transactions of less than $10.00, Amazon’s fees are 5.0% + $0.05 for all transactions – with no tiering based on monthly sales.

So, that’s where things stand today. With Google’s just announced changes, all of the three major online payment players have priced their services essentially the same – for US sellers. However, there are more differences “under the covers” between these services than just the pricing would seem to indicate.

What are your thoughts? Share them in the comments below!

Recent Payment Views

Payments Post #13: At the Intersection of Tech, Regs, and Business Partnership

Payments Post #13: At the Intersection of Tech, Regs, and Business Partnership

This month, Cici Northup joins regular contributor Justin Pituch to recap positive news in the form of fast payments growth, new fraud mitigation strategies, and evolution in cross-border transfers. All reflect, to varying degrees, the unique dynamic in the payments industry created by the intersection of technology, regulation, and new business partnerships.

read more
Payments Orchestration: What Comes Next?

Payments Orchestration: What Comes Next?

Orchestration providers have certainly come a long way, and can enable powerful capabilities and benefits for the merchants that employ them. This post explores some of the possibilities Glenbrook has been thinking about for where Orchestration (and even orchestration) can go next.

read more
Payments Post #13: At the Intersection of Tech, Regs, and Business Partnership

Payments Post #12: Lessons from Change

In this month’s Payments Post, we want to draw your attention to several recent fraud incidents that underscore the criticality of effective risk management to your business and the safety and soundness of the payments industry.

read more

Glenbrook Payments Boot CampTM workshop

Register for the next Glenbrook Payments Boot Camp®

An intensive and comprehensive overview of the payments industry.

Train your Team

Customized, private Payments Boot CampsTM workshops tailored to meet your team’s unique needs.

OnDemand Modules

Recorded, one-hour videos covering a broad array of payments concepts.

GlenbrookTM Company Press

Comprehensive books that detail the systems and innovations shaping the payments industry.

Launch, improve & grow your payments business