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I'm trying to decide which payment gateway to use. I am leaning towards Google Checkout, but it is very hard to understand their fee schedule. It says that they charge 2% + $0.20 per transaction. Is this inclusive of the charge that Visa/Mastercard is going to charge me per transaction, or incremental? Also, what about processing credit card order that I get over the phone? I know that Paypal Pro has a Virtual Terminal to process these types of transactions. Does Google Checkout have the ability to process credit card payments that I get over the
phone?

As far as I know, that fee is all inclusive.

You can not use Google Checkout to credit card orders that you get on phone.

I will recommend that you contact Google Checkout support to confirm these things.