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Companies quickly pick up CheckOut as a viable form of payment

Earlier last month, Google formally launched its online payment system called Google CheckOut. The new system is focused on providing security to users a well as vendors said Google. Interestingly, news broke out on Google CheckOut several weeks ahead of a formal announcement and Google claimed that its new service would not compete with eBay or PayPal.

Since the launch on June 29th, Google CheckOut has been receiving rapid adoption by online vendors. Some notable companies include:

Vendors that are now Google CheckOut enabled Starbucks Store ACE Hardware
GNC Timberland Dick's Sporting Goods Sports Authority Dockers
Shop PBS

eBay, one of the most popular online spending destinations however announced that it would not be supporting Google CheckOut. In fact, eBay earlier this month added Google CheckOut to its list of non-accepted payment options claiming that Google CheckOut was too new and thus not a trustworthy source for handling online transactions. eBay informed its members that it may exercise account suspensions and loss of premium statuses if sellers are found to be using Google CheckOut.

Numerous reports claimed that users were outraged by eBay's decision and that they were generally unhappy with PayPal's services over the last several years. Google stated that its service is highly secure and its experience with handling transactions for its AdSense and AdWords services indicated that CheckOut is a trustworthy service.

Despite the lack of support by eBay, Google CheckOut is gaining popularity. Support from companies like StarBucks, Fossil, PBS, and others indicate that Google CheckOut is on its way to becoming one of the few trusted forms of online payment.

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Poor Paypal
By bigboxes on 7/14/2006 10:37:17 AM , Rating: 5
Of course CheckOut is gonna compete with Paypal. Who are they kidding??? If Google can do a better job at guaranteeing payment and reducing fraud then more power to them. Paypal had their chance. Too bad eBay. If they don't start evolving into a consumer responsive company I hope that Google starts their own online auction site. I believe they will eventually.

RE: Poor Paypal
By underline21 on 7/14/2006 10:46:55 AM , Rating: 2
I hope that Google starts their own online auction site

Me too. I cant stand the way eBay triple charges sellers with their fees. One to list, another if it sells, and then another cut for receiving the money.

RE: Poor Paypal
By Homerboy on 7/14/06, Rating: 0
RE: Poor Paypal
By akugami on 7/14/2006 11:19:00 AM , Rating: 2
It's not making money that has sellers unhappy with eBay. It's the nickel and diming of it's sellers that have them outraged. As someone who has dealt with the selling lots of items on eBay, I can say that eBay's rising costs as well as multiple costs for doing the slightest thing is causing a lot of sellers simply to abandon it because it was not worth the hassle of selling items on eBay due to escessive costs.

I know of others besides myself who have stopped selling on eBay for the most part. There's a fine line to walk between milking the system and strangling the system and I think eBay is periously close to crossing it.

RE: Poor Paypal
By Samus on 7/14/2006 11:47:22 AM , Rating: 2
are you saying google doesn't make money?

...looks at stock prices for ebay and google...

wrong answer man ;)

RE: Poor Paypal
By Xenoid on 7/15/2006 1:11:28 AM , Rating: 2
Ditto a thousand times over. Ebay is pretty bad on money grabbing, especially on pricey items. Paypal is just a nightmare in every way to deal with.

RE: Poor Paypal
By ElJefe69 on 7/15/2006 5:05:06 AM , Rating: 2
ebay rips sellers off.

paypal rips sellers off and allows any 'ol shithead consumer to reverse any charge at even if the items are delivered.

paypal really really sux. And their euros to america conversion is actually the worst I have seen. I can get better using a crappy credit card than the charges they impose. (on the seller, the one who should be protected more)

RE: Poor Paypal
By Dfere on 7/14/2006 1:12:10 PM , Rating: 2
Its called Froogle, according to a news article a while back. I thought they already had this in the works. It doesn't surprise me, if this is true, that they started a checkout/credit clearing company first.

If this is true, Ebay just shot itself in the foot by requiring its vendors to use Paypal. With no huge costs to set up an account (Can you say "Current EBay Vendors get free assisted Froogle set-up?"), a lot of smaller vendors would jump ship immediately, or list on both and compare expenses to sell.

Competition, hmmm.. a goooood thing.

RE: Poor Paypal
By surt on 7/14/2006 2:25:59 PM , Rating: 3
Froogle ( is more of a bargain hunting website than an auction site at the moment.

RE: Poor Paypal
By Randalllind on 7/16/2006 6:40:34 PM , Rating: 2
Why would Ebay dis Paypal. They get % on ebay sell then a % on paypal from sellers.

Ebay would lose $$ if they let you use other payment methods. Ebay is all about $$ they could careless about what customers want.

RE: Poor Paypal
By AntiTomZandmasher2 on 7/17/2006 3:21:16 AM , Rating: 2
My hunch is that Google will win this round. They've already secured an impressive number of adopters and are far too competent to become complacent in a market.

This is in google's plan
By c4xiayu on 7/14/2006 2:31:51 PM , Rating: 2
You cannot find good deals on ebay these days.
With Froogle, google's deal finder, you can search what you want and get a shop list ordered by price,then you check out with google's checkout. This is it.

You have to admit, auction is dead. At least it is hard to get some real deals.

RE: This is in google's plan
By Homerboy on 7/14/2006 2:44:08 PM , Rating: 2
I can't tell you the last time (if ever) I purchased anything new or slightly used on ebay. Ebay (and auction sites in general) work great for those impossible to find oddities and memorbelia. Antiques and "I had that when I was a kid!!!" items.

Everything else, computers, electronics etc are way too abundant on FS/Trade forums, froogle, pricewatch etc. You'd have to be an idiot to try to find or expect a better deal on ebay.

But ebay is there for those weirdo items you simply CAN'T find anywhere else. If google sets up an acution site, I'd imagine it would be just as useful.

RE: This is in google's plan
By fierydemise on 7/14/2006 3:38:10 PM , Rating: 2
Ebay isn't just good for the obscure stuff, I just retrofitted an old specialized bike for about half of what it would cost me to buy new. Ebay does have alot of good deals but only in certain categories, and electronics isn't one of those.

RE: This is in google's plan
By Homerboy on 7/14/2006 4:04:35 PM , Rating: 2
sure I'd put used bike parts under odd-ball items too I guess. My point really being that people still try to use ebay to get "good deals" on "new stuff" and it simply doesn't work like that anymore.

RE: This is in google's plan
By Ksyder on 7/14/2006 7:52:49 PM , Rating: 3
My point really being that people still try to use ebay to get "good deals" on "new stuff" and it simply doesn't work like that anymore.

Umm... so what's changed since it stopped working like that, your opinion? There has never been more people or items in general on Ebay as there are now. My father just bought a new laptop for $300 less than Dell wanted, and I just bought some new car audio equipment for much less than what I would have bought it for anywhere else. You just have to be patient. If you look at the "Buy it Now" prices, you will generally be disappointed.

Google Auctions
By caxapok on 7/14/2006 11:10:18 AM , Rating: 2
Well Google may start an auction site as a spin off of its Google Base service. And use CheckOut as a payment mechanism.

RE: Google Auctions
By jon1003 on 7/14/2006 11:46:21 AM , Rating: 3
There's no other major auction site to compete with ebay. If you go to the smaller ones you probably won't find what you're looking for. And to sell at the smaller ones, there aren't a lot of buyers, so it's not worth the time. Google can compete in auctions right away if it started a site, just based on name recognition, and hopefully with the telented people they have there, they'll do a darn good job of designing the site and functions. The best we can hope for is that they will compete and listing prices will go down, so more will be listed at lower prices and fair shipping so people can stop worrying so much about fees and there will be more selection.

RE: Google Auctions
By IMPoor on 7/14/2006 2:31:32 PM , Rating: 2
Lets face it google is big enough to start a auction site and actually compete with ebay. Plus people love google way more than ebay. I think that alot of people would immediately move to Google auctions (if it existed) and it would be a serious threat to ebay. At least we would see some competition that would force ebay to fix their countless faults.

You can find good stuff on eBay...
By Avalon on 7/15/2006 12:53:24 AM , Rating: 2
For those of you saying you can't find any good deals on eBay anymore, I'd say you don't look hard enough.

Just in the past three months, I've picked up an X1800XL for $120, a Radeon 9700 for $35, and a 32" Sony WEGA trinitron HDTV for $300.

But, I hate all of eBay's damn fees, so I do hope Google opens up their own auction site. They are one of the few I see that can successfully go up against eBay, and I'd be glad to have some online auction competition.

RE: You can find good stuff on eBay...
By c4xiayu on 7/15/2006 10:26:50 AM , Rating: 2
Of course you can find bagain stuff on ebay, but shipping fees kill any deal under $100.

If you buy stuff from high-end online stores, they often waive shipping and give you nice return/warranty policy.

It should be cleared that normal people are potential customers of Google checkout. That is why so many jump on this google boat.

By Avalon on 7/15/2006 3:37:20 PM , Rating: 2
Those WERE my prices after shipping. Not everyone charges $60 to ship items. Sure, I could have purchased an X1800XL off Newegg for $185, but in my case why bother? I'd rather save $50+ since I'm going to void my warranty anyway by overclocking. If the item arrives DOA, most eBayers are good enough to take care of you in that event.

I did take the chance to checkout(heh) Google checkout, and it's definitely pretty cool. I hope it continues to gain support from major places...I'll likely find myself using it soon. However, I somewhat disagree with most when you guys say that it directly competes with Paypal...I don't believe so.

It's a medium with which to allow authorization to pay for items using a single account at multiple places, whereas Paypal is more like a bank/money transfer system than just a medium. They both have their similarities, but there are those differences...I think both should be able to co-exist.

By vision33r on 7/14/2006 12:52:53 PM , Rating: 2
If you look at the scams and frauds on ebay..

Why is ebay not stopping it? Because it is part of their revenue streams. Why stop it if it generates revenue for them.

Buyer gets hurt by fraudulent sellers, doesn't hurt ebay one bit. Since they collected the fees from the fraud seller and also all those spam auction listings from them.

Good Sellers get hurt by fraudulent bidders, doesn't hurt ebay at all. They took the ebay + paypal fees, the good seller probably lost the merchandise and have to pay for the fees too.

When Googleauction is finally created, you'll see ebay finally make changes.. the same for Intel..

By segagenesis on 7/14/2006 1:46:46 PM , Rating: 2
Being close friends to someone who does eBay as thier "business" I would say you are on the right track there to a point. There is alot of crap going on along in the background with the regular legitimate auctions but unless its getting negative press (as in on CNN or whatever) eBay is very reluctant to try to solve or moderate any problems you run into. As you pointed out they are getting the fees regardless of the outcome.

An example would be this person I know re-sold an item he had originally got off eBay without knowing it was counterfiet (sportswear) but the sportswear companies apparently troll the auctions 24/7 looking for this stuff and complained. He got his account suspended for months without the opportunity for appeal over 1 item that he didnt even wind up selling because it was pulled. He had nearly 5,000 auctions previously without issue which is rather insulting that they could not just have done something slightly more polite.

But getting back on topic, I can only thing positive thoughts about Google Checkout in thier attempt to compete with PayPal... seriously there needs to be competition for both eBay and PayPal. Both have gotten a stranglehold on the market and have had thier customer service and support turn to garbage as a result. As far as Google Auctions or whatever it would be called, that remains to be seen.

very impressive
By msva124 on 7/14/2006 4:11:21 PM , Rating: 2
You're right, companies are jumping ship and moving to Google Checkout at a brisk pace. 21 companies have already converted, a whopping three quarters of American businesses. It will only be a matter of time before they get the remaining 7.

RE: very impressive
By tallytom on 7/15/2006 6:36:23 PM , Rating: 2
Maybe you missed the word "Some" in " Some notable companies include..." I'll admit that marketing departments often use that word even when they are actually listing 95% of their clients.

What exactly
By creathir on 7/14/06, Rating: 0
RE: What exactly
By Ksyder on 7/14/2006 11:53:04 PM , Rating: 2
Wow...someone had a little too much caffeine today!

RE: What exactly
By Tyler 86 on 7/15/2006 2:18:33 AM , Rating: 2
Google's got a good 'analytical' feel to them, and it shows in ... well... everything they do.

It might be some 'little thing' like sending a guy a courtesy packet of asprin for his trouble keeping up, or a 'large thing' like actually improving their services to cope with customer demand.

If scams and frauds become frequent under Google's nose, you can be damn certain they won't stand for it. They have the resources and capability to individually deal with each individual scammer.

That's why Google gets such praise and even 'free' advertising by word of mouth;
They're the premier customer oriented business.

Auction items to show up in search results?
By tallytom on 7/15/2006 6:40:05 PM , Rating: 2
If so, I'm not certain this would be a good thing. If I were looking for information on, oh, say the "Star Wars" movie, I'd hate to have to sift through a bunch of results for Star Wars action figures on sale on the Google Auction Site. If they were smart about it and knew I often looked for such stuff, then it would be ok if it was presented reasonably.

Paypal was community supported
By vision33r on 7/17/2006 4:01:29 PM , Rating: 2
Originally Paypal started out to compete with eBay's Billpoint. Paypal was much more user friendly and developed user code capabilities. The community flourished because of it listened to customers and was more attention at the time of seller needs. Then the scammers started hitting them hard and instead of fighting scammers, Paypal just threw the grey flag up and been helping themselves free from covering losses of their customers, they stopped their own bleeding and ignored the bleeding of the customers.

Ebay bought out Paypal and pushed even harder for paypal is ignore their investigative roles and just stick to scripts.

What you have today is automated reponses just like ebay, when you have problems and drones decide the outcome of your issue and not really solve problems or cover losses in case someone is scammed.

Hopefully Google can listen to the customers and actually do the work of protecting scammers from sellers and buyers.

Google should just
By Nocturnal on 7/14/2006 2:25:49 PM , Rating: 2
Google should just start it's own full fledge auction site to compete with eBay. I'm sure they have the resources to do it. And I'm almost certain they'd succeed at it too.

Paypal is #1 phishing site
By Randalllind on 7/19/2006 2:50:16 PM , Rating: 2
This is the real shame of Paypal. People get spam to update their accounts etc from scammers.

It is really sad and seems like they don't do anything to stop phishing of their site.

Don't use Google Checkout!
By sregistration on 7/28/2006 1:43:15 AM , Rating: 2
I tried Google Checkout myself and I was surprised that Google didn’t come up with anything better than that!
This is like the most simplest Checkout function ever, with NO extra security. When creating an account with PayPal you have at least 2 steps to go through but here you do all at one page. That is very dangerous as in case this would be a “fake” site you would loose your data at one shot!
And because you have many Google services in your account, it can easily happen, that one of the Google sites you go is a “fake” site, meaning you are 10 - 15 times more vulnerable than PayPal as there is just one, that’s it.
Google does not think of any security. In case my account got hijacked as I used a wrong Ad-Words address, the hacker can change the password and I don’t even know about it as the password change might go to my GMail account which is included in the hijack.
Now the hacker can shop all he wants and I have a hard time telling Google that I am the owner of this account.
I think that will be very hard for Google as so far they never had that issue but now they are faced with a whole new animal!
Check out my site and you can see a comparison between Google Checkout and S-registration.

See here at



Google Checkout Gains Rapid Adoption
By AkumaX on 7/14/06, Rating: 0
By osalcido on 7/15/2006 9:18:03 AM , Rating: 2
on what grounds?

By drebo on 7/17/2006 7:33:43 PM , Rating: 2
I'd say it's an anti-trust issue.

Whether or not any judge would actually hear the case is another thing entirely.

This does, however, make me think twice about ever going to eBay again.

"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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