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Google Checkout increase fees..


XN-Matt

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...that seem to be more in-line with PayPal.

 

And they are removing any discount if you spend with ad-words.

 

Nice while it lasted - but not unexpected.

 

Hello,

 

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

 

Discontinuing the AdWords free processing promotion involves a

change to our Terms of Service:

https://checkout.google.com/termsOfService?type=Seller#GB. In

order to continue to use Checkout from 5 May 2009 onwards, you

must login to your account and accept the new Terms of Service

between 18 March and 4 May. You may login to your account here:

https://checkout.google.com/?gl=GB&hl=en

 

Google is committed to the continued growth and development of

Checkout and to helping merchants increase sales by driving more

leads and higher conversions. Advertisers who use Checkout have

the opportunity to display the Checkout badge on their ads, which

has proven to be an effective way to differentiate ads and attract

user interest. Checkout users click on ads 10% more when the ad

displays the Checkout badge and convert 40% more than shoppers who

have not used Checkout in the past.

 

For more information about this change and how it affects the

product, please read our post on The Official Google Checkout

Blog: http://googlecheckout.*************/2009/03/google-checkout-fees-in-2009.html

 

If you have any questions, please visit our Help Centre at

http://checkout.google.com/support/sell/bin/answer.py?hl=en-uk&answer=134473

Thank you for using Google Checkout.

 

Kind regards,

The Google Checkout Team

 

Google Payment Ltd is authorised and regulated by the Financial

Services Authority.

 

Google Payment Ltd is a company registered in England and Wales

with company number 5903713. Its registered address is Belgrave

House, 76 Buckingham Palace Road, London SW1W 9TQ.

 

Email preferences: You have received this mandatory email service

announcement to update you about important changes to your Google Checkout account.

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Yeah. Although, they may bet on so many people using the service that vendors/suppliers wont take away to option as it may annoy their direct users.

 

I know we won't take it away or make any surcharge for customers using it as we have a fair few that pay us with it.

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It's easy enough to setup both PayPal and Google Checkout and Moneybookers and a variety of other payment options. It is always best to give customers a choice.

 

Google always said that rates will be going up at some point. They must have reached enough people using it to start charging... or they are unwilling to eat all the fees the credit card companies are charging them. What you don't realize is that even though Google is charging only 1.5%, the credit card companies are probably charging them that or more. A large chunk of your fees actually go to the bank that issued the card presented for payment, not to PayPal or Google Checkout or your merchant account provider.

 

Example: Payment Processing Company (i.e. Google Checkout, PayPal, Merchant Account Provider, etc.) gets a piece for giving you an interface to accept payments, the Card Network (Visa, MasterCard, Discover Network, American Express, JCB, Diners Club, etc.) gets a piece for allowing you to use their networks, and the bank that issued the card gets a piece for their services issuing the card to your customer and paying you the merchant.

 

So, during the promotional period, Google was actually paying the card networks and card issuers their fees but not collecting them from you, basically subsidizing your payment processing fees during the promotional period. It's not a sustainable model, so at some point their have to start charging, like they said they would.

Edited by WisTex
Clarification
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