Yes, its true Google has announced that all payment transactions processed through Google Checkout will be free until 2008! You can also get $10 for signing up if you are new to Google Checkout.
You can see more details at: https://checkout.google.com
Below I have some up with some Pros and Cons of Google Checkout:
Con: Google Checkout is not allowed on Ebay.
Con: Google Checkout does not have a subscription system for reoccurring billing.
Pro: Google is a trusted name and your customers will fill safe purchasing through Google Checkout.
Pro: Google Checkout has no fees until 2008 and even when they have fees on transactions the fees are very low.