Google Checkout is an online payment processing service provided by Google aimed at simplifying the process of paying for online purchases. Users store their credit or debit card and shipping information in their Google Account, so that they can purchase at participating stores at the click of a button. Google Checkout also offers fraud protection, as well a unified page for tracking purchases and their status.
Google Checkout service was first made available in the United States on June 28, 2006, and later became available in the UK on April 13, 2007.It was free for merchants until February 1, 2008. Between that date and May 5, 2009 Google charged merchants 2.0% plus $0.20 per transaction (1.4% + £0.20 for UK merchants). Since that date Google has moved to a tiered cost structure, identical to that of PayPal. Also since this date, Google have discontinued their offer whereby merchants who advertised with an AdWords account were not charged fees on monthly transactions totaling less than ten times their monthly AdWords expenditure.
Prior to launch there had been early speculation that Google was building a product to compete with PayPal. However, the scope of Google Checkout is focused on enabling one-time payments to be made from a purchaser to a merchant. Unlike PayPal, Google Checkout does not permit the use of stored funds, nor allow payments from person to person.