Entrepreneur mdjensen tweets that he’s looking for the best way for his customers to pay online:

If I offer Google Checkout and PayPal, is that enough or do people just want to put in a credit card? Please respond, I need to know!

Before we can determine which is the best way for customers to pay online, we should review the three most popular options for paying on the web: Google Checkout, PayPal, and traditional credit cards.

Google Checkout is the newest significant player on the payment scene. Started in 2006, the program charges merchants a variable fee in order to accept payments. Consumers use the service free and can input multiple credit cards and shipping addresses. Google bundles fraud protection and, of course, one account works at any store that accepts Google Checkout.

PayPal was one of the web’s first hits- formally founded in 2000 as a composite of two other companies, it was purchased by eBay in 2002. Merchants and users receiving money pay a variable fee, while consumers use the service free. You can pay through credit card or your bank, and PayPal offers fraud protection, multiple shipping addresses, and other options. PayPal also owns popular payment site BillMeLater.

Credit cards, obviously, use traditional credit cards for payments. Since credit cards don’t require a login like PayPal or Google Checkout, you want to be sure that the site you submit your information to is a “secure” site, as signified by the “https” at the beginning of the URL. If you want to learn more, you can read here about identity theft and your computer. When you use a credit card to pay online, typically the merchant shoulders all the appropriate transaction fees.

It’s difficult for us to answer mdjensen’s question about whether Google Checkout and PayPal are enough for a merchant to offer. The answer depends on a mix of site demographics, the type of product being sold, and merchant financial considerations. One shortcut? Paypal and BillMeLater are estimated to have 50% of the market secured, while Google Checkout has yet to break through the 10% mark. Credit cards are not required for both services, but they are typically a given.

For consumers, the best method depends on personal preference as well. If you’re concerned with security and fraud, a third party service like Google Checkout or PayPal may be best for you. If you want more control over your purchases, using a credit card might be better. It depends on what accounts you want to have and how you want to use them.

As if that weren’t enough, there’s always buzz about new payment platforms showing up. Sites like ChipIn plug in to PayPal to help people pay debts online, and as services like PayPal become more open, you’re bound to see more similar services. Even social networking giant Facebook is rumored to be interested in the lucrative online payment game- rumors are circulating that it’s testing a new payment system. It’s an issue of personal preference to determine the best way to pay online. But whatever that may be, we can guarantee that someone will soon offer yet another way to do it.

Tags: checkout, consumers, credit card, credit cards, demographics, ebay, entrepreneur, fraud protection, google, identity theft, merchants, money, paypal, program charges, secure site, shipping addresses, shoulders, transaction fees, type o