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.

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