Google Checkout – a couple of thoughts & questions
By Garry HJ | December 16th, 2009 | Category: Google Checkout | 2 comments
It’s not often that I have a buyer use Google Checkout, although I know many sellers claim that it’s nearly as popular as PayPal for them.
A recent transaction, the first in over a year since eBid blocked acceptance of it for merchants registered on their sites other than the UK & US ones, raised my eyebrow regarding the Google Checkout billing and charging process. I’m hoping more experienced users of the service can shed some clarity on the following muddled thoughts.
Earlier this week, a new buyer on my main ecommerce website placed an order and indicated they would pay by Western Union (I know, I know, but it’s available to customers on an “if all else fails” basis, and it has allowed several acquisitions of good customers because of that). In this instance though, after my initial and normal communication, the buyer stated they’d prefer to use Google Checkout (GCO) because the WU fees for both of us were prohibitive on the size of their order.
I then sent them an invoice via GCO and awaited them paying. Within 24 hours I had an email from GCO to say they’d paid and that I should login to charge the order. When I tried to do so, the transaction was non-chargeable as Google were performing card verification steps, but true to their word it was ready to charge within 6 hours.
Now comes the thoughts and queries. At this point, Google is simply saying that the funds have been verified as available for up to the next seven days, they have not been collected and placed in my account. They’ve also structured the information flow on their website to imply I should despatch the goods before charging the order and receiving payment. To me, that is not what online mail order is about. Being a traditionalist, my approach is usually, “you pay first, then I ship”.
I read so much online about card fraud and account hijacking, and have suffered (what I think is) more than my fair share of spam and phishing emails, website hack-attempts, eBay/PayPal account suspensions and so on, for similar reasons, that I am extremely reluctant to despatch anything before the payment is in my accounts. This reluctance is reinforced by the carefree manner that services such as PayPal display with regard to “refund on request” by customers.
So, to the readers of BuildaSkill, I ask – what has been your experience with Google Checkout in this regard, and how do you handle the charge / ship sequence? Have you had any problems with chargebacks immediately after (or before) despatch? Having had funds approval, have you ever had payment denied when you go to charge those funds?
I’m hoping some larger-volume Google Checkout users can provide some insights and look forward to your advice.
Gaz
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I like GC and so do my customers who come from Google, this year payments have been about 60% PP/ 40% GC. I think the Google figure would be higher when I am able to integrate GC on my website. To me it is all about offering the customer choice.
There is no difference in domestic transaction fees.
Google Checkout notifies me I have a payment by email. I log in and process or charge the card. Click one button. If there is a risk factor my dashboard tells me what it is, may be an unverified address. If the charge is rejected I am told. I have never had a delay like you said. Once the charge is accepted or processed the money is in your GC account, you can ship. No different from having it in your PP account. At that point your dashboard says OK to ship.
Within 48 hours the money will be sent to your designated bank account. This is the main difference from PayPal. PayPal keeps it and uses it until you ask for a withdrawal. A PayPal transfer takes from 4 to 6 days to arrive in my account, PayPal blames my bank for this. A Google transfer takes 24 to 48 hours. Same bank, hmmmm.
From the buyers side payment with Checkout is sign in, one click and done. No faffing around wanting to debit my bank account, asking if I am sure I want it on my credit or debit card, no little moral lectures about using a credit card and three screens later I can tell them I am sure I want to do this. One click, done.
Charging upon shipping is often a common rule among credit card companies and standard practice with most online retailers. For example, If I place an order with Apple or Buy.com, my card isn’t charged until they ship the product. Technically speaking the Checkout system doesn’t restrict you from charging then shipping since there is an option to automatically capture funds (charge) a buyer as soon as the order is placed and a good authorization is met…
Also, I don’t mind waiting a few extra hours to get a good authorization because if anything they’re probably doing some extra fraud checks on the buyer/billing info to make sure everything is kosher. I’d rather be safe than sorry.