Google Checkout Fees increase to Astronomic proportions
I just recieved an email from Google. They’re increasing their fees.
Previously, they charged 1.5% + 15p per transaction Although you paid nothing if your adwords spend was greater than one tenth of your transactions processed through google checkout.
The new structure is as follows :-
| Monthly Sales Through Google Checkout | Fees Per Transaction |
| Less than £1500 | 3.4% + £0.20 |
| £1500 – £5999.99 | 2.9% + £0.20 |
| £6000 – £14999.99 | 2.4% + £0.20 |
| £15000 – £54999.99 | 1.9% + £0.20 |
| £55000 or more | 1.4% + £0.20 |
Google Checkout accounts for a very small proportion of our transactions so we’d be on the most expensive structure – 3.4% + 20p per transaction – bear in mind that this applies to debit as well as credit cards – let’s look at an example.
Someone decides they want to buy an MPro 110 Micro Projector @ £292.64 – previously through google checkout, the transaction would have cost us nothing, if they pay by debit card through our normal merchant account it would cost us 10p but with the new google checkout fee structure, it’s going to cost us (292.64 x 0.034) + 20p = £10.15 !!!!
Any guesses as to what my next move is going to be?
TTFN
BFG
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March 11th, 2009 at 18:41
this was only to be expected. Their fees were already much lower than Paypal’s as they were trying to get market share. Now they want to push their merchants to drop other gateways and keep only GC, so there is more transactions going through them. Sure, they’ll lose some in the way, but they weren’t interested in them eitherway.
March 11th, 2009 at 18:53
I was slowly switching to Google from PayPal due to their low fees. Now I may as well stick to PayPal which I find is more reliable than Google.
For example Google invoices won’t open on Windows Vista with Outlook 2003 – the link doesnt work! No such problems with PayPal. I reported this to Google but they werent interested.
March 11th, 2009 at 19:26
As a small charity we are also shocked by this 126% increase in the percentage fee plus 25% on the flat fee, together with the dropping of the AdWords concession.
Unless Google reconsider (and how likely is that?) we will be forced to look elsewhere for this service during the course of April.
March 11th, 2009 at 21:04
Literally only finished integrating Google into our cart on Monday. Bombshell today. And we spend around £1700 a month with Google. Still reeling from the shock.
March 11th, 2009 at 21:27
It’s absurd. I don’t know what’s posessed them.
R.I.P. Google Checkout…
March 11th, 2009 at 22:17
With Google Checkout’s fees now being the same as Paypal (see my blog entry), the lower market penetration of Google Checkout and the added integration problems – is there any reason to use Checkout instead of Paypal?
March 12th, 2009 at 07:21
Also very aggrieved about this. I’ve only recently started my business, and now I’m hit with this bombshell. I literally cannot see any reason to remain with GC now over PayPal.
March 12th, 2009 at 10:07
Having switched over 800 sales listings from PayPal to Google Checkout. GC no longer has any real cost competitiveness over PayPal. Future listings will now be customer orientated rather than cost orientated and will offer both PayPal and GC. As PayPal is more established than GC, I would expect most of my customers will pay with PayPal. Not the best way for GC to generate seller loyalty.
March 12th, 2009 at 10:27
Very disappointed with them. As a small business this was an attractive way to send out google invoices, but at hese prices we will have to drop them now.
Gutted!