Google Launches PayPal Rival

Google Checkout Launched Roy van Rijn informs us that Google's new online payment system is now online. "Under the name Checkout, the venture offers an incorporated manner to search, advertise and pay. If you buy something on Checkout, 2% and $0.20 go to Google. Paypal, the biggest competitor uses 1,9% and $0,30. Analysts compare Google/Paypal to for example Visa/Mastercard living peacefully together, while others predict the end of Paypal." W3K adds "You can use your Google account to store an unlimited number of credit cards and addresses. The service allows you to track all your orders and shipping in one place," and adds a link to a quick video tour.

Comments

Customers DON'T pay...

[jsharkey]

Would you be prepared to pay 2% on every single purchase you made at an online store just so you don't have to "fill out forms"?

Remember, the $0.20 + 2% is paid by the seller and is taken out of the actual price. Consumers will see no price difference.

Re:Customers DON'T pay...

[Fnord666]

Does anyone know what Visa and the others charge for their service?

The amount charged to merchants for a sale varies greatly depending on the agreement between the merchant and the card processor. Factors can include the number of monthly transactions, total monthly dollar amount, number of chargebacks, swiped vs. manually entered transactions, etc. In general the google figure is probably in line or a bit lower than what most small business merchants are charged per transaction.

The interesting things will be how chargebacks are handled, what fraud prevention measures are in place, and who eats the cost of fraud. With a credit card I get a lot of protection and infrastructure that handles all of this. Google will have to at least match this before I will consider using it.

Personally I still don't know how Paypal manages to avoid being classified as a bank by the government.

US residents only!

[dapyx]

Has anyone noticed it's only for US residents?

By agreeing to this Terms of Service for Buyers, you represent that you are: 18 years old or older; capable of entering into a legally binding agreement; and a resident of the United States.

All you need to know

[tomstdenis]

10. Disputes

GPC will provide various tools to assist Customers in communicating with each other to resolve a dispute that may arise between Buyers and Sellers with respect to their transaction. If Customers are unable to resolve a dispute, we can mediate disputes between buyers and sellers if either party requests assistance. If this occurs, we will review the dispute and propose a non-binding solution, if appropriate. For more detailed information, please see our Frequently Asked Questions.

GPC may offer a feedback or other ranking system on the Service to assist you in evaluating other Customers of the Service. You acknowledge that any such feedback or ranking system represents solely the opinion of other Customers of the Service, and is not an opinion, representation, or warranty by GPC with respect to other Customers of the Service.

You agree to release, GPC, Google, and other GPC affiliates, and their agents, contractors, officers and employees, from all claims, demands and damages (actual and consequential) arising out of or in any way connected with a dispute. You agree that you will not involve GPC in any litigation or other dispute arising out of or related to any transaction, agreement, or arrangement with any Seller, other Buyer, advertiser or other third party in connection with the Service. If you attempt to do so, (i) you shall pay all costs and attorneys' fees of GPC, Google, and other GPC affiliates and shall provide indemnification as set forth below, and (ii) the jurisdiction for any such litigation or dispute shall be limited as set forth below. However, nothing in this Terms of Service shall constitute a waiver of any rights, claims or defenses that you may have with respect to a Payment Transaction under the Buyer's card issuer agreement, the card association rules or applicable state and federal laws, such as the federal Truth in Lending Act or the Electronic Fund Transfer Act.

If you are a California resident, you hereby expressly waive California Civil Code 1542, which states: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if not known by him must have materially affected his settlement with the debtor."

Re:New Revenue Streams Trend to Conservatism

[Doctor Crumb]

Read their pricing scheme; sellers get free transactions if they use adwords, and the more they spend on adwords, the more free transactions they get. So, while this is definitely a new revenue stream, it is *also* a way to further bolster their main revenue stream.

1,9% and $0,30 ?

[mochan_s]

The 1,9% and $0,30 rate for Paypal is if you recieve more than $100,000 to your account and you have a merchant account!

Normally, it's 2.9% + $0.30 USD. https://www.paypal.com/cgi-bin/webscr?cmd=_display -receiving-fees-outside

Re:End of Paypal ?

[Andrew Nagy]

For the record, if you (the seller) advertises on Adwords, they give you $10 free transactions for every $1 you spend in Adwords advertising. So if you spend $500 a day on advertising costs, they allow $5,000 worth of sales go through for free.

Re:End of Paypal ?

[mishkon]

Paypal is NOT 1.9%. It is likely to be around 2.5% (over $3k in sales a month) or 2.2% (over 10k in sales) dpending on volume. many paypal uses pay around 3%. Google being 2% regardless of volume, makes it significantly cheaper then paypal for most sellers.

Re:End of Paypal ?

[Khuffie]

In Canada, you can send money through your bank accounts via email, as long as both of you have access to your bank's online banking. Unfortunately it's something not many people know about.