If you have an online home based business that uses Google Checkout, you probably know there is a fee increase coming up. If you are considering using Google Checkout, but have not yet implemented it, you should also be aware of the changes. Changes will take effect May 5, 2009.
A link to the Google Checkout fee page is below where you see the details. The jump in fees brings Google Checkout about right in line with PayPal. Prior to this, Checkout had a competitive advantage in pricing compared to PayPal and was more along the lines of many merchant accounts (without the high setup fees).
One thing they are taking away is the famous AdWords Credit. Formerly, for sales of up to 10 times your monthly AdWords spend, your transaction fees were free. They didn’t just reduce this bonus; they’re taking it away completely. This may be a significant amount of money for larger advertisers. So if part of your Adwords budget is based on this bonus, know that after May 5 it won’t be there any longer.
I wonder how many merchants will bail on Google Checkout come May 5th? What do you think?
Google Checkout Fees