A Google spokesperson has confirmed that Google Checkout merchants will receive free transaction processing through January 2008. Google launched its Checkout online payment service in June 2006, and the free processing was originally set to expire on December 31, 2007.

Google told merchants that processing fees for Checkout would take effect beginning February 1, 2008. Standard fees are 2% plus 20 cents per transaction, with no monthly, setup, or gateway service fees. Google AdWords advertisers get a bonus for using Google's payment service: for every $1 they spend on AdWords each month, they can process $10 in sales the following month for free through Google Checkout.

Note that eBay continues to ban its sellers from offering Google Checkout on the eBay marketplace.

https://checkout.google.com/sell