Comparing Google Checkout, Paypal and Sage Pay

Friday October 16, 2009 at 10:49am

Over the next few weeks we will be comparing 3 of the most popular payment processing services. We will look at the advantages and disadvantages of each from the merchant’s perspective. We’ll give you a breakdown of the fees, refund costs, charge back process, set up requirements and how long it takes to get an account set up. Finally we will give you a summary of all the services and which one we recommend. We will break this down into 4 sections, with a new section being released each week. The sections and the order they will be released in are as follows:

Part 1 – Google Checkout
Part 2 – Paypal
Part 3 – Sage Pay
Part 4 - Summary

Google Checkout
Google checkout allows customers to purchase products quickly and securely using just a single username and password. Also if you do take payments using Google checkout, your search engine listings will be highlighted with the Google checkout badge which will encourage existing Google checkout customers to click on your ad.
One disadvantage of using Google checkout is that the payment pages will take customers away from your website to process the transaction on the Google Checkout payment pages. This can look a little unprofessional and put people off purchasing through your website. Also Google checkout only accepts US Dollars or British Pounds. It also defaults all payments to the currency of where your business address is registered, therefore you can’t display or process payments in other currencies.

Fees
Google checkout will charge you a transaction fee for every transaction that you process. The rate you will be charged will depend on the amount you processed during the prior calendar month. The table below gives you the current rates.

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


There is no Setup, monthly or gateway fees and you won’t be charged to transfer funds from your Google Checkout account to your bank. Google Checkout processes Visa (including Visa Electron), MasterCard and Maestro (including Switch/Solo).

Refunds
Once you issue a refund, the refund cannot be cancelled. Google will send a refund notification email to the buyer. Google will return the variable portion of the transaction fee (1.5%) however they will retain the flat fee (15p)

Chargeback
Google uses proprietary fraud detection technology to protect sellers from unwarranted chargeback’s. In cases where you are found liable for a chargeback you will be charged the full amount of the chargeback plus an additional £7 chargeback fee.

Setup time
In order to setup a Google checkout account you will be required to first create a Google account. Once you have created a Google account you will then be required to fill in an online registration form. This will require you to fill in all your business information and agree to the terms and conditions. Once you have completed all this information you will then be ready to process payments through Google checkout.

Zarr have an extensive experience of developing ecommerce websites, so if you would like to find out more about getting Google Checkout integrated into your new or existing website, then please contact us.

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