Using Google Base

Yes, I said that using Google Checkout is like getting free money.  Here’s the announcement that leads me there:

“Free Transaction Processing for Google Checkout until 2008
Google Checkout is now free for merchants until 2008. That means all of your Google Checkout transactions for the next 11 months will be processed at no cost. Google Checkout is an alternative checkout process that works alongside your website’s existing checkout process, letting customers use a single name and password to buy from you quickly and securely. A safe and fast environment is a happy environment for buyers. And when they buy, you’ll process their orders for free. “

This means that if you spend $500.00 on your AdWords campaigns in a month, Google will process $5,000 worth of transactions through Google Checkout for free.  When you figure that merchant account fees are anywhere from 2% to 4% depending on your credit risk, that’s an extra $100 - $200 that can flow down to the bottom line (or back into your advertising campaigns, which is where Google hopes it will go.) 

The trick of course, is getting customers to use Google Checkout.  Right now Checkout doesn’t have the same mindshare as PayPal (and PayPal just sounds nicer, doesn’t it?)  I’m only seeing a few orders each month via Google Checkout so my savings are really only a few dollars worth today, but if Google puts some more focus behind their payment product they may get some more traction. 

Their goal appears to be to get Google Checkout into people’s minds as a trusted payment solution for the 2007 Christmas season, hence the year-long moratorium on merchant fees.