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New payment processing service

Posted by Michael Bloch in ecommerce (Sunday August 3, 2008 )

Amazon launched it’s PayPal competitor last week, called Checkout by Amazon. Like PayPal, it’s a complete third party payment processing service that leverages the company’s well known and trusted name.

Currently only available to US merchants (sigh), Checkout by Amazon works very similarly to PayPal and can be used to sell physical goods and digital goods.

Checkout by Amazon supports Visa, MasterCard, Discover, American Express, JCB, or Diner’s Club credit cards. Another gotcha – all credit cards used for payment must have a U.S. billing address.

For transactions over $10, the fees are 2.9% + $0.30 per transaction. Below $10, you’ll pay 5.0% + $0.05 on each sale. Amazon offers some further discounts on volume. For the consumer, it offers an “A-Z guarantee” – a buyer protection program that covers physical goods.

Like PayPal, integration is simple – just copying and pasting a few lines of code to create a buy/checkout button. Advanced integration is also available for implementation into third party shopping carts.

PayPal killer? Not for a long time and if it’s anything like Google Checkout – I doubt it. Aside from the “US only” issue, I’ve had the misfortune of using Google Checkout on a couple of occasions and it’s more paranoid than a meth freak in withdrawal. Paypal is just too flexible, user friendly and too well entrenched to be dislodged by anything else currently on the market.

Still, it’s likely to be very popular with Amazon merchants given its tight integration with the Amazon service and order management features.

Learn more about third party payment processing services


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