Google Checkout vs. PayPal

If you have an online business, you need to have a way for customers to pay for your products and services – and this includes accepting credit cards. Luckily, the Internet has made it possible to easily and cheaply accept a number of payments, from credit cards to electronic checks. There are a number of providers, and two of the most popular are Google Checkout and Paypal.

Beyond their affordability, Google Checkout and PayPal are popular because they are third party payment processors that allow customers the ability to pay for items and services on a variety of sites without having to spread their personal payment information around. Instead, it is stored at one place, and the vendor never actually sees it, since payment transactions are handled by Google or PayPal. This creates a feeling of privacy that is desired by some online shoppers.

Google Checkout

Google Checkout aims to allow Google users the ability to easily buy products and services with only one login. If your customers are logged into Google, and they participate in Google Checkout, it is extremely easy for them to pay for merchandise and order services at a variety of Web sites. There is no need to enter personal information in over and over again; just use one login to make all the payments.

Another feature that makes Google Checkout desirable for online businesses is the fact that it works with the popular AdSense and AdWords features. Google’s ad network helps businesses place their ads in search and on Web sites. If your business participates, Google Checkout works with these programs. You can pay your transaction fees with money you have in your AdSense or AdWords account, making it cheaper.

Additionally, businesses that use Google Checkout get a little shopping cart icon next to their Web site name in search results and in ads. This indicates to shoppers that the business accepts Google Checkout, and it can draw in more customers and clients. The integration of Google Checkout to work with other Google services – which are quite popular – is one of its biggest advantages.

PayPal

Even though Google Checkout is popular, it is not as popular as PayPal. PayPal is the pre-eminent online processing system. It was made popular through eBay (PayPal is an eBay company), and now many other Web sites integrate the payment system for common use. Additionally, many service providers accept PayPal payments, since it provides a way of getting paid that is much quicker than checks. It is possible to set up a merchant account through PayPal. The company processes credit and debt card transactions, as well as electronic transfers and eCheck payments. This makes it easy and convenient for those with PayPal to pay, since they can do so from their accounts. However, there is a separate login, and sometimes this can confuse consumers who do not understand why they are being moved from your business Web site to the PayPal Web site.

PayPal comes with an array of helpful business features. There is the ability to generate invoices and ask for payments. You can coordinate with your inventory, and print out monthly account statements. These business functions make PayPal very attractive to many online retailers. However, there is no special accounts to help offset the transactions costs charged by PayPal.

Using Google Checkout and PayPal

Online businesses, instead of choosing one or the other, are starting to offer both payment options. This is because many online businesses want to offer more than one option. And, since customers do not actually have to have Google or PayPal accounts to use credit cards through these payment processing systems, it isn’t necessary to sign up for these services – yet businesses can use them in lieu of merchant services in some cases.

The main difficulty that you may have with usingGoogle Checkout vs. PayPal is that it can be difficult to use them in place of merchant services when you have offline needs. For the most part, these payment processors are best used with online orders only.

Before you decide which service to use, carefully consider your business needs, and what you hope to accomplish. This can be very helpful to you as you decide what will best serve your needs. You may find that neither service will actually serve your needs.