That little image to the left says it all about the new Google Checkout transaction processing fees going into effect May 5, 2009:

When we launched Google Checkout in 2006, we set out to create a fast, secure online shopping experience for our users. Now in our third year of helping merchants increase sales and attract user interest, we’re announcing the decision to move from our previous standard fee schedule to a new tiered pricing model where rates decrease as merchants process more transactions through Checkout.

On May 5, we will be implementing a few changes to Google Checkout:

* Google Checkout’s transaction processing fees will transition to a new tiered fee structure, where the rates will vary depending on a merchant’s monthly sales processed through Checkout. For more details about the pricing changes, please visit our U.S. fees page and our U.K. fees page.

* With the new tiered fee structure, merchants can qualify for rates as low as 1.9% + $0.30 per transaction in the U.S., and 1.4% + £0.20 per transaction in the U.K.

* We will also be discontinuing the AdWords free transaction processing promotion at this time. As previously announced, Google Grants recipients will still be eligible for free donation processing until 2010.

We’re committed to the continued growth and development of Checkout and to helping merchants increase sales by driving more leads and higher conversions.

Google Checkouts new transaction processing fees are now very similar to the PayPal processing fees:

Monthly Sales Through Google Checkout/Fees Per Transaction

Less than $3,000 –> 2.9% + $0.30
$3,000 – $9,999.99 –> 2.5% + $0.30
$10,000 – $99,999.99 –> 2.2% + $0.30
$100,000 or more –> 1.9% + $0.30

It appears that these new rates are aimed at forcing smaller online business to pack up their Google Checkout buttons and head on over [or back] to PayPal and there are plently of people ranting about it. One user stated:

Wow. It seems to me that you at least wait until you have the best service possible before you hike the prices – especially given the current economic crisis. While I understand the need to raise prices, as one of the many small businesses who chose Google Checkout over PayPal despite the lack of comparable services/options (phone assistance, multiple order checkout for customers, gift card options etc.) I can no longer afford to pay for GCO. We are a small company and we just launched our online ordering system a few months ago. We are still building our sales and online presence and we simply can’t afford this level of price increase especially with the many options that GCO lacks. It is really unfortunate, as many of our customers truly hate using PayPal and were excited that we were going with GCO. Unfortunately, we have no choice but to leave Google at this time. If the prices are the same and I get more for my money with PayPal, I will simply explain to my customers that Google went back on its “DO NO EVIL” philosophy. I guess the saying is true “If it seems too good to be true – it must be” Sorry to go Google, but what did you really think the response would be from us little guys?

The lack of comparable or competitive services was the number one reason we never implemented Google Checkout on our hosting site, not to mention that Google Checkout was merely a lesser version of 2Checkout, which is another service I would not recommend.

American Greed is rampant and a shitty economy does not seem to matter when the all mighty dollar is in control. Its all business, right Google?