it's pretty sad when your customer service is considered worse than a bank.

@mac-phisto: Good point.

This reminds me of the South Park episode where they try to make money on the internet. I have long accepted that my web site will most likely never make me any money, only cost it.

I think the difference here is that Google will probably respond to an EECB or come out and plainly explain why this happened. PayPal however, doesn't give a shit as long as they get their fees.

I wouldn't say worse then paypal.

Also, their fees will be higher than paypals starting May 1st for international transactions. Looks like they are trying to phase it out.

i use paypal quite frequently. it's a lot easier to accept payment for freelance work via paypal than by check or having to set up a proper merchant account. but one thing i do, and would recommend to everyone, is to transfer the money out to a bank account as soon as you receive it. if the OP had done that, yes, her account would still be closed, but at least she wouldn't be out $200.

@Capt.Oblivious_GitEmSteveDave: What product or service does your website provide? I would mind seeing a shameless plug here, especially since I'm curious and would love to help.

@GavinEstecado: *wouldn't, damn my anti-proof reading habits....

So if both paypal and google checkout suck what are people supposed to use for small direct transactions?

Correct me if I am wrong but don't personal bank accounts in the EU have the ability for you to send money to other people's accounts electronically via your bank?

I see nothing in the Google Checkout ToS that says they can keep the $200. Seems to me like another good reason to take Google to small claims court.

but as of today I'm turning my back on both. Until they agree to staff resolution centers with real people who can resolve issues, there's zero reason to trust them.

uh...ok?

@Nick1693: Didn't happen to a guy who had $721 owed to him by Google when they closed his AdWords account. He had to take them to small claims court, and he actually won:

[www.huffingtonpost.com]

@wickedpixel:
Google Checkout does not work like that. It automatically transfers the money after 1-2 days.

The user cannot speed up the process.

Everyone sorta says that Google isn't evil...but do we really know how well they deal on a customer service standpoint? I mean, it's not like there are a constant ton of Google stories on Consumerist of bad support from Google....at least that I've seen in a long time. Hell, just searching the Consumerist for Google, and entry two for Google is how Google Checkout will be the less-evil PayPal (written in 2006): [consumerist.com]

How many people have actually had issues with Google and needed their support? I mean, without even anecdotes to go off, how well do we know they'll be able to handle issues? I'd be concerned exactly this sort of thing announced is going to start happening more often...if it isn't yet already. Are they really as soulless as E-Bay but with a great sheep costume? Or is this as one-off as any one-off issue that's bound to happen, and Google Checkout isn't at all as bad as paypal?

Anyone actually had first-hand experience dealing with Google, good or bad?

Hmmm... this is sad; I refuse to use scammy scammy PayPal, have done for years, yet I've grown to love the convenience of Google Checkout, and have always felt an extra measure of confidence because I thought Google had my back.

Now you tell me they're doing evil too. My dreams are shattered. Hopefully, as someone said above, they'll come forward and address this somehow.

@GavinEstecado: It's a webcam site featuring four webcams throughout my house. [GitEmSteveDave.com] is the URL. It's not the best site in the world, but it's my little slice of the internet. Now Cash4Bowlingballs.com, if I ever figure out what step 3 is, THEN I'll make profit!

Hear hear! I decided to close my Paypal account after one too many of these stories from Consumerist and getting a notice that my Paypal account was on 'alert'. Then the nightmare of simply trying to CLOSE the account began. Paypal will not close the 'on alert' account without mailing me some sort of confirmation, and I have moved since I opened the account, so my account is apparently in permanent limbo. Anyone else have this problem?

I stopped using PayPal once I stopped using eBay. Both website are very shaddy and I will never use them again for anything.

@bohemian: Some banks in the US have that ability as well, through an EFT (Electronic Funds Transfer).
Some banks (INGDirect) call that an e-check. Other banks (USBank) don't even know what an EFT is.

An EFT is free, takes a couple of days. It isn't a Wire, but does a similar thing.

@Capt.Oblivious_GitEmSteveDave: You've considered prancing about, nakkid except a hand-held sign, on WebCam?
Can't see what could go wrong there...

@Nick1693: I disagree - I can call Paypal, and they actually have support staff, plus they have a clear dispute system in place that explains why your money is gone.

Google just tells you to piss up a tree.

I too used to use Paypal to sell a product online, and they closed my account without warning. Even though the terms of use did not say so, they told me they don't allow people to sell non-physical products because of the "risk". They ended up holding more than $4000 for 6 months "in case any customers need refunds". (The product was $9.95.)

What I do is link my Paypal and Google Checkout accounts to my credit card. That way, I'm not leaving my credit card info all over the internet at various websites, but if I hit a problem that Paypal/GC doesn't want to resolve, I just hit them with a chargeback from the credit card company.

Easy.

Might not really help, but you can call google at (650) 253-0000
Select 'Option 0' to talk to an operator.

This does not bode well for Android (TMobile G1 and soon the Vodafone G2) developers as Google forces us to use Google Checkout to sell applications via the Android Market, plus they shave 30% off the top for transaction processing and kickbacks to carriers.

@corsec67: You have to make sure it is actually an EFT. Our bank has an "online bill pay" service but it mails a paper check to the recipient.

@howie_in_az:

30%is BS!!

The actual fee for Google Checkout is 2%+ 20 cents!!

What did Google say when you contacted them for a comment on this article?

Google checkout sucks from the OTHER end too. I was buying some accessories for some Etymotics and the store used Google checkout. A couple of days after I placed the order still no communication. I go to Google checkout and it says that the company charged my card. I email the vendor and they say that Google placed my card on hold.

I go back and verify that Google says that they have already authorized a charge. I write the vendor again. They INSIST that it's Google's problem. I spend the next half hour trying to find ANY way to contact Google about this, the closest I get is their suggestion to go to some discussion group.

Nope not for a financial transaction. I cancel with the vendor and remove my credit card info from Google checkout. Never again will I use Google checkout. They have ZERO customer service.

@wickedpixel: There is a 4 or 5 day window in which paypal can reverse the ACH transfer. I know because they did that to me with $3,500 upon closing my account without explanation.

I had a problem with a vendor who didn't respond when an item was delayed or back-ordered or something, and Google Checkout canceled them (after I detailed to them what was going on). It was email, but it was a live person who was responding and it was investigated.

This was on the consumer end, and I haven't seen an equivalent of "paypalwarning.com" with new horror stories daily. This is the first one I've heard from google checkout, but the red flag is up.

I have been using PayPal for almost 3 years for my eBay business, and I have never had a major problem. And when I did have the 1 or 2 small problems, they were very helpful. I love using PayPal. Hmmm.....

might check into [revolutionmoneyexchange.com]

Google fees doesn't help paypal. Paypal is still the worst online payment company in history. Unlike paypal google doesn't freeze your money and hold it and keep it whenever they feel like it. According to surveys, sellers and buyers still preferred google over paypal because they can still get their money regardless if it costs a few dollars more

I can't speak with authority about Google checkout, but my experiences with Paypal have been a nightmare. I hope this is mistaken, and that Google does a better job in this field. I also can resist to express my disgust for PayPal.

@Trai_Dep: It's that darn Y chromosome. B/c of it, interest in watching me drops like Nikki getting interviewed on TV.

@bohemian: At ING, at least, it is an EFT, I've used it. You have to have the routing and account numbers of the entity you are sending money to.

ING Bill Pay is much the same as anywhere, you load in the information on the payee, and they do electronic or paper as possible.

Interesting wrinkle: The ING checking account doesn't send you checks to use, if you need a paper check, you tell the web site and the computer mails the check. You cannot sneak paper past them unnecessarily, the computer checks and will use EFT if the recipient is set up for it.

@Nick1693: Just found this:

[answers.yahoo.com]

Google Tech Support = 1-650-253-0000 ?

I bought an ebook from these people and had to email them about my order. They didn't get back to me for a week. Finally I had to bug them on twitter. To their credit they took care of my issue quickly at that point but I shouldn't have had to do that.

One wonders how many of their other customers were similarly ignored and decided to do a chargeback. I'm not saying that's definitely the case, I don't know, but it casts doubt on the "Big Bad Google closes account for no reason" angle.

@Evan Coonrod: It was a really good e-book though, don't get me wrong. Even for a beta product. I'm eagerly awaiting the next update.

I used to work for a company that made software that interacted with shopping cart websites like Amazon and EBay and so on, and payment gateways. We refused to work with Google Checkout because the service is so poorly made. The transaction system (transaction in a TCP/IP internet sense) was designed so poorly, that when you made a request, they couldn't promise when they would reply. So if we even tried to work with them, we could have the system hang while it waited for a response from Google Checkout, which may never come.

@3RandomBagsOfCr@p_GitEmSteveDave: I found that episode of South Park to be completely missing the point of making money on the internet. People do it all the time. In fact, people make money off the internet the same way they do off a TV show, ironically enough: Selling ads.

I turned my back on PayPal over two years ago and I haven't looked back since. I only used Google checkout once when it offered a $10 off promo, but cutting myself off from those accounts has probably saved me a lot of money, and it's definitely saved me infinite levels of aggravation. I understand a lot of people make their living receiving cash via PayPal, et al, but it seems sometimes the only solution is to eliminate the problem.

@wcnghj: it = google checkout?

I've just been told to put money in an escrow account I've never heard of. Much safer.

@3RandomBagsOfCr@p_GitEmSteveDave:

Get a bunch of cats, people will pay to watch them play on webcams. Or puppies, those would do fine too.

@Ber'Zophus: I had trouble with them with adsense previously. My account was disabled, and payment not made for "violation of terms and conditions of service" I emailed to ask what the violation was, no answer, submitted an appeal, no answer, submitted another appeal and email, no answer. I finally gave up since it wasnt all that much money.

But the samed happened with Yahoo!. I had an account with them and was answering questions on Yahoo Answers. I answered 15-20 questions on my first day, of which 2 or 3 were makred as best answer and i was awarded points, then my account got disabled. No reply as to why after several emails.

These services are offered for free to the consumer, so really, what can be expected?

According to [www.slash7.com] they are located in Austria. Google Checkout is only available to US or UK merchants.

I frequent webmaster forums and have yet to see a Google Checkout or Adsense complaint that after deeper investigation wasn't the result of a material breach of the TOS.

I believe there is more to this story.

PayPal needs to be broken up like Ma Bell was or at least be severely regulated.

As soon as a big behemoth corporation like Ebay gets a hold of a company that had a good Idea (PayPal) they will do whatever it takes to squeeze every penny out of you until you scream, and that's when they are just getting started.
PayPal is like a bounty hunter, they can break into your house without a warrant and do things that the police can't even do, which makes them a dangerous animal indeed.