Google Checkout is a recent addition to Google's growing arsenal. It work a lot like Paypal as Google processes your online sales from customer's who use their credit cards including Mastercard, Visa, Discover and American Express. Checkout is a leap up on Paypal though as it streamlines the process into a matter of two clicks.
First an online store needs to put up buy now buttons on their site. These buy now buttons make it so a shopping cart is not even required. Checkout lets you design the buttons yourself by filling in your price, description, quantity and size. Then Google generates the html code for you and you simply cut and paste it into your site. Once the button is in place customers can click on the buy now button to purchase your product. Google saves all of your customer's credit card information so all they need to do is press the place your order button and your transaction is processed.
The business then needs to review, charge and ship the order which they do from the google checkout site. Once the Google Checkout order is charged the money from the sale is directly deposited into the bank account of your choice. Customer's can then review the merchant and give feedback on how well the transaction was process as in paypal with seller's ratings.
If you are still not converted from paypal you should consider these two extra bonuses. First all of there are no Google Checkout processing fees from now until Christmas! Also if you use Google Adwords already you are really in luck as for every dollar that you spend on Google Adwords you get $10 free processing from Google Checkout.
You can see a couple example of how Google Checkout is used at this website Easy To Grow Plants.