Google Cancels Free Checkout Processing

[Discovery]

We knew that at some point Google would end this program.

I think it was a fair and brilliant promotion to reward advertisers who used Google adwords to get free processing. I personally thank Google for saving my company many thousands of dollars in transaction fees.

There is no doubt that countless businesses dumped PayPal and picked up Google checkout. Unfortunately, Google did not execute on the promotional strategy before they ended the offer. While giving the service away for free, they needed to upgrade Google Checkout into an enterprise grade service. Instead, it's still a weak beta type mini service, with no incentive to stay with them.

Google Checkout 2009 Fee Changes
On May 5, 2009, Google Checkout's transaction processing fees will be changing from 2.0% + $0.20 per transaction to a new tiered pricing structure, where the rates will vary depending on the amount of your monthly sales processed through Checkout.

At that time, we'll also be discontinuing the free transaction processing promotion for AdWords advertisers. Any AdWords transaction processing credits accrued during April 2009 will be applied towards transactions that occur on May 1-4, 2009.

I'm not knocking Google here, again I have saved many thousands of dollars with the free transactions. However, transaction processing was VERY slow, averaging almost 7 business days for payments to post. There is no ability to track invoices sent, or payments requested and you can't export/import directly into your accounting software, or integrate into an online financial service. When it was free, these issues were tolerable, now that they are full price, I will be changing very quickly.

Bank of America for instance offers an amazing suite of business tools and data integration features to seamlessly share data with your accounting software for about the same price, easy transfer of funds into your investment, business or payroll accounts. Yes, I know, most of us don't like B of A, but the pricing is about the same with every feature a business owner would want to have.

How do you think this change plays out in the overall strategy of Google and how us, their customers view them?

Are they doing a rope a dope, offering a ton of free apps, and then after everyone has integrated them into their life and business, start charging for them? Were we all stupid enough to believe Google was different and would offer free apps forever (including myself)?

Discovery

[B-Double-U]

We received that the other day and I almost soiled myself.

I instantly sent a notification to the programmers to pull it from our checkout process on the 4th

I am not sure what the motivation is behind it yet, but it is definitely a no-brainer for us. That is much much more that Visa & Mastercard charges and they actually offer fraud protection. You know what Google Checkout offers:

Google will evaluate all chargebacks you receive and, whenever possible, fight them on your behalf.

HA!

We have already lost a ton of these battles.

Maybe it will work for the people outside of reality or outside of the U.S.A.

[B-Double-U]

***Quick Reminder***

Don't forget that today is D-Day to cancel google checkout before the new fees take effect.

Beginning on May 5, 2009, transaction processing rates will be determined by your sales volume during April 2009. Each month thereafter, we'll continue to use the prior month's sales volume to determine your transaction processing rate. Learn more
Monthly Sales Through Google Checkout Fees 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

If this is less than you are being charged by your processing company, YOU NEED TO FIND NEW MERCHANT SERVICES!

[Mel66]

I am honestly curious how many merchants will continue to use G Checkout now. Why would you at these rates?

[Discovery]

Time, cost and hassle to switch your shopping cart back to a paypal or other merchant account will keep many at Google in the short term. Paypal still sucks, but its far and away better than Google Checkout.

[AussieWebmaster]

yeah they lock you in and then make the money... seems a little evil to me.... when does analytics start getting a fee beyond simple answers