For online shoppers, Google Checkout works differently than the PayPal model of having an account with predeposited funds. You store your credit or debit card information online and make purchases via your Google Checkout account without your credit card information being given to the merchant. It provides a much more secure way to shop online and reduces the risks of credit card fraud with SSL security that is on par with major banking websites. However, unlike PayPal, Google Checkout does not offer the option to link directly to your checking or savings account.
For customers who receive payments online or have a Google AdWords account, Google Checkout offers some key advantages. As of this writing, the fee structure of online payments is 2 percent of the sales price plus 20 cents compared to PayPal's 1.9 percent to 2.9 percent plus 30 cents per transaction. Google Checkout integrates perfectly with Google AdWords accounts and you can pay transaction fees with your AdWords/AdSense earnings. Having both also increases your available discounts on preferred services and enhances your potential sales by displaying a Google Checkout cart next to your ads.