Google Checkout checks in

A correction was made to this story. Read below for details.

update Google on Thursday unveiled its much anticipated online payment processing system designed to offer shoppers with a Google account a quick way to pay for things.

Web sites and merchants can integrate Google Checkout into their sites as an alternative payment processing method to existing checkout and credit card processing systems, said Salar Kamangar, vice president of product management at Google.

Consumers with a Google account can type their credit card and billing information into Google Checkout once and then pay for purchases thereafter with practically one click on any Web site that features the system, Kamangar said. As things now stand, he said, "If I buy five things from five different merchants I have to fill out five different forms. This process can take three, four, five minutes" for each form. Google Checkout is meant to change that.

Once they've purchased something through Google Checkout, consumers can track their orders through the system, which will be live starting Thursday at Checkout.google.com.

Merchants using the system will be charged a processing fee of 20 cents per transaction, plus 2 percent of the relevant purchase price. Customers who pay for search-related keyword ads through Google AdWords will be able to process, free of charge, transactions that add up to 10 times the dollar amount of their AdWords spending, Kamangar said. Beyond that, they pay the 20 cents plus 2.2 percent. Kamangar said the regular transaction fees are less than those charged by credit card companies, which can be about 1 percent higher.

Expanding on existing system
AdWords customers who use the payment system will have shopping cart icons displayed in their ads so customers will know that they can use their Google Checkout account to pay for purchases.

The back-end system is the same as what Google has been using for at least a year to allow customers to pay for premium services on its Google Earth, Google Video and Picasa Web services, Kamangar said. Now the system is being expanded to allow any merchant to use it as an alternative payment processing system.

Though Google Checkout is being integrated into AdWords, Google will not track data about which keywords lead to purchases, use such information to modify AdWords auctions or bid prices, or combine such data with its new cost-per-action test ad system, under which advertisers pay only when the ad leads to a sales lead or a purchase, Kamangar said. For now anyway.

"We wouldn't rule that out entirely," he said. "There may be opportunities" in the future.

The Google Checkout service could also be extended for use on mobile devices, but Google is not working on that right now either, Kamangar said.

Video: Check out Google Checkout
It's a Google-powered shopping application

Any Web site can add Google Checkout as a payment processing method by either cutting and pasting HTML, or Web code, into the site. Large companies and e-commerce and shopping integration providers can also integrate it as an option within new or existing shopping cart systems, as retailers Timberland and Levi's are doing, he said.

Google also is partnering with financial services companies. For example, Google and Citibank will offer customers a co-branded Checkout option that will provide users $5 or 1,000 "thank-you" points for signing up, Kamangar said.

 

Correction: This story gave the incorrect percentage merchants must pay to participate and incorrect information about incentives for signing up for the co-branded Citibank Checkout option. Google Checkout merchants must pay 2 percent of the transaction to Google. Users of the Citibank Checkout option will receive $5 or 1,000 points for signing up.

[karthickdoss]

Yet another Gimmick

This is yet another gimmik by Google, to push their stock prices up. Check the insider sells of Google..

[Sonicsands]

Gimmick? Hardly

Whether you like them or not, whether they initially work well or not, Google usually adds innovative features to not necessarily novel applications. Search was around when they entered the fray, as was online mapping, web email, etc. Each time, they refreshed if not enhanced the user experience.

So, a gimmick? Hardly at all. Online payment is a proven business model. Therefore, this adds an additional revenue stream for them that is not search-based.

So easy to diss something. It takes more thinking to consider the good and the bad.

[Sonicsands]

Gimmick? Hardly

Whether you like them or not, whether they initially work well or not, Google usually adds innovative features to not necessarily novel applications. Search was around when they entered the fray, as was online mapping, web email, etc. Each time, they refreshed if not enhanced the user experience.

So, a gimmick? Hardly at all. Online payment is a proven business model. Therefore, this adds an additional revenue stream for them that is not search-based.

So easy to diss something. It takes more thinking to consider the good and the bad.

[www.datagrep.com]

I subscribe to this view on google checkout

your insight on google service is true.
~BALA
chennai, India
[e-mail]
www.datagrep.com

[dmitry76]

muhc better that PayPal and the likes...

I had a quick glimps at the features of google checkout and I have to say that it is much better than that of PayPal and of any other payment gateways I have come across.

First, it is cheap and second I can use google's API to fully integrate payment processing into my web sites! PayPal does not offer it as part of their standard package, plus it is more expensive

[dmitry76]

muhc better that PayPal and the likes...

I had a quick glimpse at the features of google checkout and I have to say that it is much better than that of PayPal and of any other payment gateways I have come across.

First, it is cheap and second I can use google's API to fully integrate payment processing into my web sites! PayPal does not offer it as part of their standard package, plus it is more expensive

[rmiecznik]

good for competition, good for overall market

ya, I agree, I used paypal for a very long time, like 3 years and in all that time, they were draging their feet, I still can not incorporate simple trasnaction easily to my web site.

Competition is all good, it forces people to think
faster, or you won't survive long.

Google is like WallMart and look at WallMart, everyone hates them, everyone shops there, well almost every one.

[R.T.F.M.]

How Secure is This?

If this Google venture has the same lack of security as their GMail, then I wouldn't touch this with a 10-foot pole!

I opened a GMail account last summer and used it 1 time to email my nephew - no one else! And I know that he did not forward that 1 email to anyone!

I have been deluged with SPAM and Phishing ever since and Google never responds to any of my inquiries & comments about this problem!

[dondarko]

it's secure as...

posting your credit card, social security, date of birth and other personal information in a hacker forum. First of all hackers and other thieves will be make this checkout thing a prime target. and given the track record with google on privacy(remember they post their secret business plans on their site before they planned any announcement - supposedly a doodoo) I would not be surprised that some genius at google 'accidentaly' posts entire credit card database that they are going to compile on their users. One more thing...

'Google Checkout will handle only payments of 1 cent or more--not micropayments for things costing a fraction of a cent, Kamangar said.'

Note to writer: Micro payment is considered usually within 1 cent to 1 dollar as the amount. 'Fraction of a cent' - please I have yet to hear someone charging you less then a cent. Unless you're dealing with financial institution. Besides BitPass is the bes thing out there as far as micro payments and just payments in general go.

And I do not work for BitPass and I am a google user.

[karthickdoss]

Unsafe

Google already knows what are ur interests( searches, orku communities), who are ur relations( gmail, orkut friends), google base, video, etc and with this checkout...am sure this is not going in the right direction...am scared..

[AbuLafya]

Trust: Small online store vs. Google

I think this is a wonderful idea.
Small and even bigger stores, which don't do online shopping as their only way of business, are much less likely to have proper security.

Leaving your CC number in all these stores increases your risk significantly with every transaction.

Google has amassed experience with online fraud with their AdWords and AdSense business, which has billions of dollars turnover. They have both automated and human means of detecting suspicous activity.

Only the fact that consumer's email is not passed-on to merchents is pricesless.

[LOGIKonline]

Smells allot like M$ Passport

Now how many people will remember the stink around Microsoft Passport? Will Google get the same activists. Interesting how Google takes a combination of Passport and PayPal - and merges them. Nothing inovative really - just another tool to attempt to justify their stock price.

[kartbart]

As secure as Google keeps its financial presentations

Remember that gaffe when they posted a presentation prematurely? Google may be a cool company of geniuses, but the last time I checked most geniuses make poor businessmen.

My credit card info stays with me. Sorry Google ... it is not you, it is me ... not liking you!

[blogtommy]

Google Checked Out

How very unoriginal and mainstream. What happened to that "outside the box" thinking company that shot out in front of the internet corporate world? Who kiddynapped em? About the only thing these guys haven't copied here is some kind of cheesy referral program like the other guys....or am I missing something? Oh and one heckuva catchy program name as well....'yawn'

Just another way to pay

Such a novel idea. Paying for stuff on the web in 2006.
http://www.techknowcafe.com/content/view/567/42/

[TV James]

Is this new?

It just smells like another payment processor, what with the 20 cents per transaction plus 2.2 percent.

Where's the new? Where's the novel? Where's the Google twist?

Giving a discount to people who buy other products from you (ad placement) doesn't count.

Sadly, right on over to checkout.google.com I will now run anyhow.

[danhb]

Encryption?

Interesting ... I checked out the sign-up page for the service at Google. It didn't even use an encrypted link, or require a strong password.

Sorry Google, not interested.

[kamwmail-cnet1]

Well, there goes my Gmail account.

I didn't trust Microsoft Passport, I sure as heck not going to trust Google accumulating massive data on my activities. Did you know that once you sign in on your Gmail account, any Google service you access is linked and filed under your account on a Google server?

[pentium4forever]

Reply

They display banner ads and similiar to your email related from what I understand. Everything is logged on what you do and visit on the Internet in some way, shape, or form so get over it.

[pentium4forever]

Reply

They display banner ads and similiar to your email related from what I understand. Everything is logged on what you do and visit on the Internet in some way, shape, or form so get over it.

[kamwmail-cnet1]

Well, there goes my Gmail account.

This is exactly like MS Passport. I didn't trust MS Passport and I certainly won't trust Google's version of it. Did you know that once you'd signed in on your Gmail account, any Google activity you'd done on the brower is now stored on Google's servers? Way too much private info stored. And everytime Google says "do no evil", they turn around and do it.

[jason2584]

you won't be missed

Well don't use their services then. It's not like they're the only provider of search/email/advertising/etc on the web.

[kamwmail-cnet1]

Oh But I Will Be Missed.

Unlike people like you, I actually spend $$$$$. With an annual minimum of $5,000 in online spending plus a fair-issac score north of 750, I AM the customer companies want. And people like me, people with money, actually value our privacies.

Now run along little kiddie. Pretend to be a demographic that companies want somewhere where you won't be laughed at.

[kamwmail-cnet1]

Oh But I Will Be Missed.

Unlike people like you, I actually spend $$$$$. With an annual minimum of $5,000 in online spending plus a fair-issac score north of 750, I AM the customer companies want. And people like me, people with money, actually value our privacies.

Now run along and pretend to be a demographic that companies want somewhere where you won't be laughed at.

[john55440]

Privacy

Do I _really_ want Google to have a listing of everything that I buy online? -No!

[mystereojones]

Google now tracking purchases?

When did the government buy Google?
http://www.techknowcafe.com/content/view/554/42/

[tony_z]

If you don't even know the online processing market then stop bsing.

The online processing market is dominated by PayPal. They are convience and fast to pay online. In terms of security, it is the worst you ever seem. They might promote to you that they will not reveal your credit card informations, but it is all fake. You might not want your seller to see your credit card informations, but PayPal allows their Indian customer service reps to see it! Their salary is less than half of what average Americans make. In short, PayPal is damn corrupted. Charging fees on transfering money around their system even though it is not a credit card transaction.

If you fall in to the privacy category, I can conclude that you don't even use PayPal, then why you comment on how bad Google Checkout is? Google Checkout is aimed right at PayPal customers. A lot of sellers hate PayPal for their useless chargeback dispute system. They did nothing and charge $10 fee. Google is doing something good for the community, and who cares if they are making money or collecting information. Not like other internet companies don't.

Only thing I want to find out is how Google Check deals with chargeback.

[kamwmail-cnet1]

Lots of BSing from someone who "doesn't bs".

Oohh, paypal charges for money transfers, just like any other financial institution. Ooooh.. And they hire sweaty aliens whom you just don't like out of bigotry. Ooooh...

For your info, most online merchants use regular CREDIT CARDS. Paypal does not dominate. Check you bs stats at Economy.com.

[shareth27]

Google Vs Amazon.

Can Google match up to Amazon.com. I mean, we are talking about A TO Z here. Alright, I'll cut the crap.
When it comes to the Clicks and Bricks model, Amazon.com is what comes to most people's mind for a number of reasons.One being, they were early adopters of this approach.
Google is not exactly a fast follower but its late in this business but nobody can protest the fact that, they have a very well established brand name already which is going to attract crowd.Lets say.. by having the same strategy and business model as what Google has now for their e-commerce business, but if only the company was called elgoog.com ...I'm sure and alot will agree the company will not sell as expected.
Google definitely has the BRAND NAME advantage.
But still??? will it match upto amazon.com??
The fact that you can get almost anything you need from amazon.com and not just get them but almost always at lower prices is appreciated by alot of shoppers.
Let's not forget the "convenience" factor. The fact that amazon.com lets you customize your page,store your personal and credit card information, auctions, discounts, seller accounts and free shipping(Im sure people love this) are some of the value added features offerd by amazon.Of course, the user interface is one of the best that is out there on the web.

How is Google going to compete with AtoZ Giant?? I am not completely against Google but if they want to thwart ( i dont know if that's the plan) or even match upto amazon.com, they better have something really "innovative" under their belt.
Good luck Google!

[0044512]

international sellers

i've just tried to setup as a seller but it won't let me select a country the US is set and can't be changed.

come on google make it international as i sell in US$ anyway.

[dmitry76]

dmitry76

Getting spam does not have anything to do with sending email to your nephew. A lot of junk mail programs simply auto generate email addresses using most commonly used prefixes. You may not even send a single email yet get tons of junk mail.