- WEB STARTUPS
- WEB JOBS
- ALL TOPICS
Google Checkout Raises Fees and Removes Credit for AdWords Spend
The Google Checkout team has announced some major changes to the fee structure for merchants using the Google Checkout payment processing system. The new pricing appears to match the pricing by competitor PayPal.
Andy Beal has a good overview of the changes which he calls, "worse, worser and even worser". Here is the new fee tier structure based on monthly sales:
- 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
To give you an idea, as of today, here’s what you pay: 2% + $0.20 per transaction. While Google makes out that customers may see a decrease, I doubt the percentage is that high for customers with over $100,000 a month in sales.
The other news is that the fee credit provided by purchasing AdWords is also going to be removed. When I signed up for Google Checkout last month, I was pleasantly surprised to see the fee credit. It’s certainly disappointing to see the credit removed – wonder how that will impact AdWords sales which in turn will affect AdSense publishers.
Also, if your customer is located in another country, you will need to tack on another 1% fee on the purchase amount.
Update: Rich has a good overview of the changes from a UK perspective.