Online payment transaction fee’s have always been a big problem for small e-commerce start-ups. When it costs 2-5% as well as a largish per transaction fee, it’s something akin to walking a tightrope trying to maintain profitability, and when you sell cheap items, it gets even worse. Consider that a song online goes for around 99cents, and then wonder how you could sell them using your existing online payment charges.
Payment services like Paypal have proven that money isn’t really money until it’s withdrawn from their service, (thereby avoiding huge unnecessary fee’s), and look at how popular that has turned out. Right now, online payment services like Paypal are starting to make the direct credit card services look extremely bloated (charge wise) by comparison.
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