Google Checkout: Worth the Risk?
Ranked #302 in Business & Work, #19,154 overall
Online Sellers Lose $$$ Thousands With Google Checkout
Imagine yourself in this seller's place. After spending countless hours designing their website, taking product photos, writing advertising copy and integrating Google Checkout, they opened their online store and began promotion. One week later they received their first order. Suddenly with no warning, without explanation, and with no recourse . . . wham, their Google Checkout account was closed. Google cancelled the order and refunded the customer's payment. Non-compliance with Google's Terms of Service was cited as the reason for the closure. The seller was left puzzled when multiple attempts to find out "why" failed.
If you think this is an isolated incident, try searching the Google Checkout Merchant forum. A recent search for "suspended" resulted in 460 posts by disgrunted Google Checkout merchants stating their account had suddenly been closed without explanation. A search for "closed account" returned 438 posts. These numbers have significantly increased since this lens was originally written. Imagine how many other accounts have been closed without the seller bothering to post their confusion, anger and dissatisfaction about Google's actions in the Google Checkout Merchant forum!
The scenarios are nearly identical. The Google Checkout notices and explanations received by these sellers appear to be the same "canned" rhetoric. The sellers express their shock about the sudden account closure. Many are furious about their loss of revenue and dread spending the time to find and integrate an alternative payment processor into their website's shopping cart.
If you think this is an isolated incident, try searching the Google Checkout Merchant forum. A recent search for "suspended" resulted in 460 posts by disgrunted Google Checkout merchants stating their account had suddenly been closed without explanation. A search for "closed account" returned 438 posts. These numbers have significantly increased since this lens was originally written. Imagine how many other accounts have been closed without the seller bothering to post their confusion, anger and dissatisfaction about Google's actions in the Google Checkout Merchant forum!
The scenarios are nearly identical. The Google Checkout notices and explanations received by these sellers appear to be the same "canned" rhetoric. The sellers express their shock about the sudden account closure. Many are furious about their loss of revenue and dread spending the time to find and integrate an alternative payment processor into their website's shopping cart.
Contents: Is Google Checkout Worth the Risk?
- Could your merchant account be next?
- Honest Seller Ousted Without Explanation
- We Gave Google Checkout Another Try
- No Second Chances from Google
- Typical Google Checkout Account Closure
- Bewildered Sellers Speak Out on Google Forum
- Where's Google Checkout Merchant Support?
- Sellers Lose More Than $$$
- Sellers Denied Access to Sales History
- You decide. Is Google Checkout worth the risk?
- How to Sell Online - Books from Amazon
- Have a comment or feedback?
Important!
Could your merchant account be next?
Google can and does accuse and convict merchants of TOS violations without notice and without revealing their "crime." The punishment for said TOS offense? . . . no further access to their Google Checkout merchant account . . . and a monetary penalty when Google issues customer refunds.
Honest Seller Ousted Without Explanation
We opened a Google Checkout merchant account with true, accurate personal and business information, verified our bank account, and then spent considerable time and effort integrating Google Checkout into our website. When we received our first order, Google effectively charged, convicted and sentenced us without disclosing what "crime" against their Terms and Conditions we had committed.We are honest sellers (Ebay Powersellers for nearly 10 years with 100% positive feedback), just trying to maximize our profits by leaving Ebay and Paypal. We are still shocked and appalled by Google's actions.
Based on our experience we recommend using a payment processor other than Google Checkout, but if you choose Google, make certain you study their Terms of Service carefully. Even with multiple reviews of the Google TOS, we never discovered where we had erred.
We Gave Google Checkout Another Try
Thinking we had overlooked something in the Google Terms of Service, we carefully studied it and then set up a new Google Checkout account for another selling venue with a different email address and our other bank account. Every item specified in the Google TOS was complied with . . . we dotted every "i" and crossed every "t".
Google let us go through the process of opening a new Checkout account and verifying our bank account. A month later I tried to log into this new Google Checkout account and discovered it had also been closed . . . this time without even sending us an email stating that the account had been closed.
Google let us go through the process of opening a new Checkout account and verifying our bank account. A month later I tried to log into this new Google Checkout account and discovered it had also been closed . . . this time without even sending us an email stating that the account had been closed.
No Second Chances from Google
Here is the message Google displayed when we discovered the new account was closed.
Typical Google Checkout Account Closure
- Seller creates a Google Checkout merchant account.
- Google opens the account and prompts seller to verify their bank account.
- Seller enters their bank account information for verification.
- Google acknowledges that the bank account information is verified.
- Seller offers Google Checkout to their customers.
- Payment for the seller's orders are processed.
- In some cases, Google processes the seller's orders and transfers funds to the seller's bank account for a few days or even a few months before they close the seller's merchant account.
- The seller attempts to log into their Google Checkout merchant account and discovers this message: "It has come to our attention that your Google Checkout merchant account does not comply with our Terms of Service. As a result your account has been closed and will not be reactivated. For all future orders, please use an alternate payment method."
- Seller receives a "canned" notification email that Google has issued refunds for all orders for which there are funds in the seller's Google Checkout merchant account and warns they may have chargebacks for which they will be held responsible.
- Seller uses Google support to send an inquiry asking for the account closure reason.
- Seller receives another "canned" response from a Google representative stating they cannot reveal the account closure reason due to security reasons.
Bewildered Sellers Speak Out on Google Forum
Where's Google Checkout Merchant Support?
The scenario above is exactly what happened to us and to countless others who voiced their confusion and frustration on the Google Checkout Merchant forum.After finding that our account was closed, we reviewed the Google Checkout Merchant Account Terms and Policies and could not find any area of non-compliance. We sent Google Checkout support an email using their online form asking for clarification and received the same "canned" response. Account closed . . . cannot disclose reason due to security. . . . In other words, don't ask why--just take a hike and find an alternate payment method.
We called Google's main office only to hear a recording stating that no telephone support is offered at this time.
A last ditch effort, we replied to Google Checkout support's "canned" response asking once again for details of our non-compliance with Google's TOS. Word-for-word their reply again stated for security purposes they could not reveal why our account had been closed.
Sellers Lose More Than $$$
Many sellers had shipped orders before Google closed their account and issued refunds for those orders. They not only lost revenue, they lost their shipped merchandise--in some cases worth thousands of dollars.
Sellers Denied Access to Sales History
Upon account closure, Google locks the merchant out of their account history. Any sales history not previously retrieved is lost! That includes data required for filing federal and state income tax returns and sales tax records for reporting and paying taxes to their state's franchise tax board. You decide. Is Google Checkout worth the risk?
Google Checkout mechant accounts are closed without prior notification to sellers. Sellers receive no explanation and have no chance of correcting their "unknown" non-compliance of Google's Terms of Service. Immediately upon account closure, Google issues customer refunds without regard to orders shipped. Google denies sellers access to their account history.
Are you willing to risk using Google Checkout?
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MissMerFaery says:
Yes, because Paypal do exactly the same thing, as do eBay.
Posted January 31, 2012
andyg2 says:
From the millions of accounts a few have had their account closed and they don't know why, big deal. It's far far far better than Paypal and much faster and cheaper than most of the other online payment gateways. Haha, I was wondering where the advert would come and reading beyond this poll I see one for revolutionmoneyexchange.com - I had the misfortune to integrate this for a client and I think they've gone out of business now, they were crap!
Posted May 06, 2011
No way!
susan300 says:
I've never used it, but after hearing this, I wouldn't try it. Denial of the history was the kicker. There's just no excuse for that.
Posted November 29, 2011
SandyPeaks says:
How thoughtless and dictatorial Google are becoming! Hope somebody can offer a sound alternative and take away Google's income!
Posted February 13, 2011
gooddealsbooks says:
I say use Revolution Money Exchange at RevoultionMoneyExchange.com it's free. It's FDIC insured because it's a real bank but Googlecheckout and Paypal are not safe and are not regulated to make sure this crap doesn't happen. Online seller talking here 5 stars rating
Posted April 19, 2010
How to Sell Online - Books from Amazon
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COUNTRYLUTHIER
Feb 11, 2012 @ 10:28 pm | delete
- No risk no reward right? Great job,keep sharing the tips.
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gostrojgo
Oct 27, 2011 @ 10:46 am | delete
- gorgeous view, very much
fireplace with his hands
adjustable plastic window
welding technology
build a garage
stekloizol
room design
sharpening drill bits
septic tank with their hands
underlay laminate flooring
metalloprofil
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gevans411
May 31, 2011 @ 9:15 pm | delete
- One of the issues many small business owners face when working with Google Checkout is the lack of options when dealing with chargebacks. Unfortunately as Google checkout is not a true merchant account and is a money transfer service, small business owners using it give up some of the protections offered with a traditional merchant account.
Great article by the way
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blackspanielgallery
Feb 4, 2011 @ 10:41 am | delete
- I have not had any problems with it].
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rajdubli
Sep 26, 2010 @ 8:44 pm | delete
- I wouldn't use Google check out
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