Merchant Services for your Online Business

cc_earthWhen starting an online business, one thing you’ll need to consider is how people are going to pay for your products or services. There are a number of online merchant services you can use including two very popular ones: PayPal and Google Checkout.

It can take quite a bit of time to read through all the information available to merchants on both sites so here’s a look at some of the major pros and cons of each service:

Google Checkout

Google offers many services to online entrepreneurs and one of the benefits of Checkout is that it links to some of them. If you create a Google AdWords ad, you can put the Checkout button right in the ad so not only do you drive traffic to your website, but you generate more sales. Google reports that ads with the Checkout button receive 10 percent more clicks.

Another great feature is that once shoppers have an account with Google they only need to enter their username and password to purchase something on any site with Google Checkout. This cuts down the checkout process and reels in casual shoppers. Google has also streamlined their checkout process to lower cart abandonment and persuade purchasers to buy.

Unfortunately Google Checkout is only available to merchants in the U.S. and U.K. at this time, but international buyers can use it to checkout in U.S. or U.K. currency. It also can’t be used for person to person money transfers yet the way that PayPal can.


One really great feature that PayPal offers is called Virtual Terminal. Using this you can expand your business to receive payments by phone, fax or mail as well. This system enables you to enter credit card numbers yourself for immediate processing. It also creates a custom packing slip automatically.

PayPal accepts 18 different currencies and can be used by merchants in a number of countries.

You can select a number of buttons to use on your site including Buy Now, Add to Cart, Subscribe for automated payments, Donate or Buy Gift Certificate.

The merchant rate transaction fees for both companies are very similar and they both offer secure transactions and fraud protection. Both are reputable companies that are fairly straightforward and easy to use.

Choosing the right merchant services is one thing that can improve sales and customer satisfaction at the same time.

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This entry was posted on Friday, May 15th, 2009 at 3:44 pm and is filed under Financial Security. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


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