Google Checkout Dropping Fee Breaks For Advertisers

Google Checkout - a PayPal-like service - launched in 2006 announced it will be raising its fees in May 5.

The official blog stated:

* Google Checkout's transaction processing fees will transition to a new tiered fee structure, where the rates will vary depending on a merchant's monthly sales processed through Checkout. For more details about the pricing changes, please visit our U.S. fees page and our U.K. fees page.

* With the new tiered fee structure, merchants can qualify for rates as low as 1.9% + $0.30 per transaction in the U.S., and 1.4% + £0.20 per transaction in the U.K.

* We will also be discontinuing the AdWords free transaction processing promotion at this time. As previously announced, Google Grants recipients will still be eligible for free donation processing until 2010.

The service offered breaks to advertisers and lower fees than competitor PayPal when it first launched, but is now offering similar pricing. If the couple of posts at Search Engine Watch forums are any indication the move could cost them many of their current users.

About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.