Merchant Account without a fixed transaction fee

I’m finishing up with a website that will charge 99% of the users around $1 a month for service. If I use a merchant account that has a fixed fee for every transaction like 30 cents (example: paypal), i’ll be losing 30% of my revenue. Does anybody know of one that just charges a percentage? I’m willing to accept double what paypal charges (2.9%) I just need to find one that won’t take a significant portion of my revenue.


Does nobody know of one?

I’m in search for one too, for one dollar micro transactions myself. In my case PayPal takes more than 3.9% + 0.30 + 2.55% (Currency exchange).

The only one I was able to find ( did not allow credit card transactions, and not very instant but has incredibly low fees like 0.25% of every transaction. The disappointing part is that its currently U.S only I think.

If you do find one kindly let me know? Thanks.

PayPal has a micropayment fee option. They’ll take 5% + $0.05 of each payment, which would be $0.10 for your $1 payments. The choice of the micropayment fee versus normal fee table is per-account, so you’ll be charge this fee even if you also accept larger payments.

It is only available for US, UK, and Australia right?

I think most merchant accounts will charge you a percentage for each transaction, while the payment processor charges a fixed monthly fee / charge per transaction. So for each transaction there are in effect 2 fees.
This link may be of use.

Most merchants not only charge a flat fee plus percentage of each transaction but also charge a flat monthly fee as well. Of all the options I looked at a couple of years ago Paypal was the cheapest because it had a similar fee structure to all the others but without the $30 monthly charge.

I think merchant account charges on transaction. And the per transaction fee and percentage of order fee - but I am getting charged multiple fees For every order I am being the charged the $0.30 fee when the order is placed.

There are a lot of different fees to consider…

  • Gateway fee (monthly fee)
  • Authorization fee (per authorization, whether it’s successful or not)
  • Batch fee/settlement fee
  • Statement fee (monthly fee)
  • Discount Rate (% of each transaction)
  • Surcharge for business cards, non-qualified transactions, and rewards cards (% of each transaction, usually +1-2%)
  • Other miscellaneous fees

It’s a pretty complicated game they play and I have never seen any merchants that didn’t charge some combination of those fees. Visa/MC charges them discount rate (% transaction) fees and maybe some transaction fees as well. They don’t usually mark them up very much (although you could just be with a bad merchant)

Look up “Interchange Plus” under your country it is the least expensive way for small ticket merchants. Now had said that most providers would want a minimum monthly processing fee of $25 or greater, but as long as your processing fees are equal or more than the minimum it won’t cost youy anything.

Those rates seem to be in line with most merchant accounts but I can see you point with the corporate cards and such. I think rather than cost you should look for merchants that will allow those types of cards. The extra money you make being able to use those cards may make up for the extra fee.

I have the same issue. I was going to charge .99 for something and .30 is high.

With a high volume of transactions I would be willing to pay a high monthly fee. I will do about 50,000 to 100,000 transactions per month.