It’s terrific when a great many visitors come to your site; however, if you have an e-commerce site the goal is for them to buy something. I have found that when marketing anything either on the net or in person, the easier one makes it for the person to buy, the more likely they are to purchase. Since a payment of some sort is an essential ingredient of any sale it seems to me that making a method of payment as easy and painless as possible is extremely important. Credit cards have contributed more to the direct marketing of products in the last 20 years than perhaps any other single issue. My question is therefore directed at merchant accounts and the ability to accept credit cards on the net. It seems that there are many companies offering merchant services like Pay Pal and others; however there have been many stories about these companies holding back payments for days and months sometimes. That is certainly not an efficient way to run a business—any business. If one has the ability to obtain there own merchant account the money is usually deposited in ones own bank account in 24 hours. I think this would be an interesting topic to explore because there is a great deal of confusion and miss-information surrounding this issue.

In any event anyone could shed some light on this issue it would be welcome.

Best regards
R_L

I've used PayPal for years and I personally have never had a problem. One thing I really like about PayPal is their debit card. Works just like a standard MasterCard but with a couple of cool exceptions:

1. When you make a purchase, the transaction immediately appears in your PayPal account.

2. You receive 1.5% cash back immediately when you use the PayPal debit card.

PayPal does take a few days to transfer money to your bank account. But, you can always use your PayPal debit card and withdraw the money at an ATM and deposit the money into your bank account if you are in a rush.

Any merchant account provider (including PayPal) will have problems at some point. Having had both a standard merchant account and PayPal, I much prefer PayPal.

Oh, almost forgot to mention that it's a breeze to download PayPal account information directly into my accounting software. Very handy!

Welcome to the forum R_L! :standingw

I've been using PayPal, ClickBank and my own merchant account (for a variety or purposes and reasons) for 5 years. I've never had PayPal or ClickBank hold back payments. They are always transferred to my accounts within 3 business days (which, I believe is the legal limit).

My merchant account deposits my funds within the same amount of time... usually 2-3 business days.

The only thing I don’t like with paypal is their poor coverage. I guess they work good only in USA and Canada.
Correct me if I am wrong.

Uhh... a few more than that. PayPal is available in 45 countries.

I receive Paypal payments from all over the world and have had no issues with it at all. I actually prefer to receive payment that way for international orders.

~ Lisa

I've used paypal on my website for 5 years with zero problems.

If you are looking for a merchant account, though, you might try Costco. For their business customers they offer a very competitve merchant account option. (They also have health insurance and many other business benefits)

Michele

I suppose every company that provides money transfers online has its cons and pros. Just look at paypalsucks. However there are many people who like using this company.
I just can’t say anything about it since I don’t use it due to my geographical location.

I've used Authorize.net for my merchant account, and I've been very pleased with them. However, I also loves me some PayPal.

Yes, I think that paypal is the most popular payment processor, and if someone is searching for the merchant account, most of people suggest to try paypal :D

I have been using paypal for many years now, and many of my clients and friends also use them. We don't have any problems.

my 2 two cents...

You will hear complaints and praise about every system.

Praise is unsolicited. Complaints - you have to know the root cause. The people complaining may have caused the issues themselves. Bad mouthing anonymously has also become popular, especially for people trying to divert from popular, larger systems.
I have looked in to PayPal, but since I am not a total goods seller and deal mostly in B2B, services and licensing, I haven't signed up yet due to lack of need. My clients all have an established maximum (low for first time) for services, and all software is licensed and paid prior to licensing, so even with the goods they will only have it for 15 days unless they run a good hack. :abovehead

Good luck in your merchant account search, whichever way you go.

Hello,

A lot of business owners that I have come across with, always ask me the same question over and over. That question is, "if I switch to you, what rates will I get."

Here is the deal folks... I will break it down to you in writing.

Your rates are based on the following:

1. Avarage Ticket price
2. Monthly Valume
3. Type of business
4. Type of transaction (in pearson, phone, internet, etc)
5. Risk category

These are just the basics...

Now here are the (basic) type of rates:

1. Qualified Rates - Regular Credit Cards
2. Mid and Non Qualified rates - Usually rewards, corporate, and other rates which are always higher.

You also have per transaction/item charge ontop of your rates.
---------***< Example >***--------------------------------
Qualified
V: 1.79% $0.10 Transaction
MC: 1.79% $0.10 Transaction

Mid/Non Qual
V/MC: as much as 1.00% + $0.10 per transaction
These are the corporate/rewards/etc cards
----------------------------------------------------------------------

[Moderator Edit: See signature file for contact info.]

I've considered getting a merchant account a couple of times, but have never gotten one. First time, the (what I thought was a reputable) vendor charged a "non refundable set-up fee" in order to fill out the application...turned out there were some previous nondisclosed fees in the 45 page agreement they presented only after paying the initial fee. Eventually got my money back for that one.

I've heard from several sources the Costco merchant account is a good one. That's next on my list to explore as soon as I get to it.

Reason I haven't been terribly motivated to find a merchant account is I'm happy with using Paypal and 2checkout.com. Paypal seems to add useful, new features every few months. Haven't looked into it yet, but they recently announced a way to take credit cards offline, so I might end up going that route instead of separate merchant account.

I used to sell merchant accounts. I also spent about 10 years selling, installing and training in the use of Point-of-Sale systems, and other "vertical market" software and hardware. Many of the systems included card processing, so it is a market I am familiar with.

For several years I have been recommending either Costco or Sam's Club packages, since they are right good. However, I recently found another that I feel is an even better deal for those selling mainly on-line. It has the advantages of having your own merchant account at a reasonable cost.

<Affiliate link edited out by moderator.>

While there are many who use PayPal and other "Third Party Processors" (TPP's), there are some drawbacks. The biggest problem concerns their attitudes towards chargebacks, should they occur. Since PayPal and the others are just "merchant accounts" to the actual processors, they have to be on their toes to manage the number of chargebacks that get reported to the processors. So, at the first claim of a problem, they refund the money and let the merchant dangling in the breeze. Even the processors themselves have a much more even-handed chargeback process. But the TPP's don't want things to escalate to a genuine chargeback through the processors.


They can be equally as hard on the customer. Often they will drag things out until the day or so before the deadline for the customer to file a real chargeback with their bank or provider. And they require an "I won't go past or around you and file with my card provider" clause when you sign with them, so they can close your account if you do file a regular chargeback.

They make it hard for both sides to function as they would had the seller had their own merchant account.

And while it's true you often don't hear the entire story, there a quite a few of them at PayPal Sucks.com (http://paypalsucks.com)

Personally, I prefer to be the master of my own destiny. Even if it were to cost me a bit more each month (it doesn't, with the volume I do), I would still direct my on-line sales to my merchant account. I do maintain a PayPal account for people who just want to send me some money without the transfer of a product, but I do not offer it as an option on my WebStores.

BobetteKyle,

The new PayPal feature you referenced is called Virtual Terminal, and it works great. Since it launched we have been using it to process one or two over-the-phone credit orders per day (the vast majority of our customers pay through the website), and it's a breeze.

We use PayPal exclusively as our merchant account, and it's never been a problem. As long as the customer uses a "confirmed address," which means an address associated either with the credit card used for the purchase (if they pay by credit card) or with a credit card on their PayPal account (if they pay via PayPal), then all you have to do is supply the USPS or UPS tracking information for the transaction and PayPal offers 100% protection on chargebacks (even if they end up having to fork over the dough themselves). In the thousands of transactions we have completed over the past year-and-a-half, only two chargebacks have been attempted against us. One was for a $60 set of DVDs, the customer had used a Confirmed Address, and we didn't lose a cent. The other was for a $7.99 baby bottle, the customer had used an Unconfirmed Address, and we lost the $7.99 plus shipping, but c'est la vie.

The trick is to not ship very large orders to Unconfirmed Addresses.

- Paul

The new PayPal feature you referenced is called Virtual Terminal...
Hey Paul, I haven't had a chance to look at that. Is it difficult to set up?

Robert,

Actually, there's no setup at all. You just have to sign up for it for $20/month (or signup for PayPal Website Payments Pro, which includes Virtual Terminal), and then whenever you want to process a credit card payment over the phone (or fax, or in person) you just go to www.paypal.com/vt and login. It gives you a one-page form to fill out (product name, price, address, cc info, etc) and then you can process the card in less than 30 seconds.

This was always a pretty serious gap in the PayPal service, and I'm glad they finally filled it in.

- Paul

If you currently use QuickBooks Pro or Premier you can get a merchant account through them with very competitive rates. The plus side of this is that you can have the invoice emailed to the customer and they can click on a button to PAY NOW, enter their info and walla it is processed through QuickBooks and the payment is posted in your books.

I just signed up for a great merchant account that allows me to accept CC's over the phone. I am very pleased, and I do use Paypal, but it does scare some customers away for some reason. I also needed something to process craft show payments, as well as have the ability to possibly open a small at home biz too. I would be happy to share this info with anyone!

I recently opened a merchant account at my bank and found it to be a great tool to increase my sales. I can take credit card info by phone, by mail (order form) or in person at my shows and I call it in to be processed. They transfer the money to my checking account within a few days.

I also love paypal - I just find it very easy to use and widely accepted. For those it does scare off, they can call me to do it by phone the other way.

paypal is great, especially for online businesses/ecommerce. You're right though, it does scare some people away but thats when you just talk to your bank and see what merchant services they have. Honestly, the fastest way to get your money is to do merchant services through your bank as they are the only ones that can provide same day availability.

As a developer & webdesigner I find for all my clients PayPal is a great tool to take advantage of simply becasue for the most part many consumers & internet buyers in the online marketplace trust the PayPal brand attachment to eBays overwealming marketshares.

Also when I develop my clients projects I also recommend some payment processors for creditcards such as Authorize & 2checkout.

Regardless PayPal can handle your Credit Card Purchases, even without your customers having an account, as all they need is access to there Credit/Debit Card.

Goodluck!

As a developer & webdesigner I find for all my clients PayPal is a great tool to take advantage of simply becasue for the most part many consumers & internet buyers in the online marketplace trust the PayPal brand attachment to eBays overwealming marketshares.

Also when I develop my clients projects I also recommend some payment processors for creditcards such as Authorize & 2checkout.

Regardless PayPal can handle your Credit Card Purchases, even without your customers having an account, as all they need is access to there Credit/Debit Card.

Goodluck!

Authorize.net is just a gateway that you can use with almost any credit card processor. This is a very good one to use if you have a shopping cart. It integrates very easily.

You can find very inexpensive merchant accounts that fit your needs perfectly. I think many people are afraid of venturing away from paypal because they are afraid of fees, but PayPal charges the same fees as most merchant accounts. Plus, when you can accept payments without the PayPal logo at the bottom of your page you look more independent.

You can find very inexpensive merchant accounts that fit your needs perfectly. I think many people are afraid of venturing away from paypal because they are afraid of fees, but PayPal charges the same fees as most merchant accounts. Plus, when you can accept payments without the PayPal logo at the bottom of your page you look more independent.

I like charge anywhere but some of my higher volume merchants dont like it cause it is a little slower than the standard Quickbooks way. But, I usually am able to save them enough to make the hassle of using Charge Anywhere bearable.

What have your merchants said about it?

Paypal just charges to much when compared to the other more competitive prices out there. If you're going for a merchant account online and your business is serious then you could do yourself a favor by going to skipjack for your gateway provider. and find a processor that offers a flat fee instead of the % rates that costco/sams offer. Flat Fee Processing Blog has some good info.

It kind of blows my mind that small business owners will give their money to big business like Costco and Sam's (WAL-MART!) the same companies that thrive on shutting small business down.

PayPal is a good option if your business is processing $5,000 a month or less. You won't be able to avoid PCI with PayPal, though.

Here's a quick tutorial to help you keep a little bit more of your money (not get ripped off). If you're in a hurry, skip down to the line that reads "Where’s the money going?" Otherwise, please bear with me through the basics. I'll get to the good stuff like pricing, gateways, etc. after laying a little ground work.

What's a Merchant Account
In essence, a merchant account is an open line of credit that's extended to your business by a financial institution that enables you to accept bankcards. Surprised? It makes pretty good sense once you think about what's going on behind the scenes. Let's take an online transaction, for example:


A customer orders a product from your Web site.
You authorize his credit card.
A day or two later, you ship his order and settle the authorization.
Your acquiring bank (more on this later) credits your account for the amount of the order.


It's simplified, but for the intents and purposes of this quick tutorial, that's the process. Step number four is where credit comes in to play. The acquiring bank or risk-owning entity is paying you based on what you've *claimed* to have done -- i.e., shipped the product.

Who's Who
It pays (literally) to know whom you're dealing with before you set out to find a merchant service provider (credit card processor). Here's the list:

Card Associations (Visa, MasterCard and Discover)
The Associations are the governing bodies of their respective brands. Visa and MasterCard (and Discover) are open-loop systems. They're called "Associations" because their networks are comprised of various issuing and acquiring institutions (banks) working together to facilitate the credit (and debit) card process.

The Associations don't issue credit cards. Instead, they set pricing (interchange), security guidelines (PCI DSS), acceptance guidelines, and maintain their respective networks to route transactions for authorization and settlement (Bank of America, JPMorgan Chase Bank, Citibank).

Issuing Banks (Think "Customer Bank")
As you may have guessed, issuing banks source and maintain credit (card) accounts for their cardholders. Logistically, it's easiest to think of the issuing bank as your customer's bank.

Member Banks (Think "Merchant Bank")
Member banks acquire your bankcard transactions. Logistically, it's easiest to think of member banks as the merchant bank because they're the ones that deposit funds from credit/debit card sales into your checking account (Bank of America, JPMorgan Chase Bank, Citibank).

Third-Party Processors
Banks used to handle the payment and processing of credit transactions back when the networks were just getting off the ground. As payments became more complex, banks started outsourcing the processing portion of payments to third-party processors such as First Data, NPC and Global Payments. This is where the term credit card processor comes from.

ISO, Acquirer, Agent
Independent sales organizations (ISO), acquirers and agents are the sales arm of the bankcard industry, and they're what most people think of as their credit card processor. Their main responsibilities include acquiring new merchants (sales & marketing) and providing customer service for existing merchants.

Disclaimer: The lines between each of the aforementioned institutions aren't always so cut and dry. Many of the larger players can perform various tasks across the spectrum. For example, third-party processors may also settle transactions. The good news is that the idiosyncrasies are inconsequential at the merchant level.

Where's the money going?
Before you can find the best credit card processor, you have to understand where cost comes from and which areas of cost you can control. Credit card processing fees are broken down as follows.

Base Costs (Think Wholesale)
Base credit card processing costs are those that are the same for all businesses and credit card processors. They're non-negotiable. Interchange fees and assessments comprise base cost.

Interchange & Interchange Fees
Issuing banks are the big winners in credit card processing because they collect interchange fees. Interchange is a fancy word that refers to the money paid by the member bank to the issuing bank for each credit card transaction. Interchange accounts for the largest portion of processing expense.

Interchange fees vary depending on the type of card being accepted, your business classification, and a few other details. Visa, MasterCard and Discover maintain fee schedules for their interchange fees that you can check out here (Discover doesn't publish theirs.):

http://www.mastercard.com/us/merchant/pdf/MasterCard_Interchange_Rates_and_Criteria.pdf

http://usa.visa.com/download/merchants/april-2011-visa-usa-interchange-rate-sheet.pdf

Assessments
Assessments are how Visa, MasterCard and Discover make money. There are a few different assessment charges, but they're currently about .11% plus $0.02.


Markups
The only area of cost that you can control is the markup. The markup consists of anything over base costs, such as the processor's fees and fees from gateway providers, equipment providers, etc. The markup is the only thing you're shopping for when comparing processors.

Rates, Fees & Pricing Models
There are basically two types of merchant account pricing models: bundled and pass-through.

Bundled Pricing
Under a bundled pricing model, the processor groups interchange fees into tiers called qualified, mid-qualified and non-qualified.

Pass-Through Pricing
Under a pass-through pricing model, the processor passes the actual cost of processing (interchange & assessments) through to you separately from their markup.

The Difference
You do not want bundled pricing. You want pass- through pricing.
Bundled pricing is more expensive, less transparent and results in the notorious hidden charges that the processing industry is famous for. Costco, PayPal and most credit card processors use bundled pricing for their merchant accounts.

Gateways
With regard to merchant accounts, price and compatibility are the two main things to consider with respect to gateways.

Price
You will often pay lower fees for a gateway if you acquire it through a processor than you would going directly to the gateway provider. Reason being is that processors are given reseller rates by the gateway provider, and many won't apply a large markup, if any, when selling the gateway with a merchant account.

For example, Authorize.net charges roughly $99 set up, $15 a month and $.10 per transaction on "house accounts." But, processors are often able to offer Authorize.net for roughly half of those figures.

Compatibility
I always recommend gateways that are non-proprietary, such as Authorize.net. Gateways require time to integrate, and choosing a gateway that only works with a single processor means having to redo the integration if/when you switch processors.

Risk Holds
Risk holds are responsible for most of the horror stories that you hear online. A risk hold is initiated by a processor or acquirer when a merchant exceeds the risk tolerances of their processing agreement. Typical reasons for a risk hold are the merchant is engaging in a form of business other than what was stated on their application, they've processed more than their declared amount (usually on a monthly basis), or their average ticket is higher than declared.

Give serious thought to your monthly processing volume and average ticket when you're completing a merchant account application. There's nothing worse than having your business take off and realizing your processor is holding your funds.

Common Pitfalls to Avoid

Never ask a processor, "What's your rate?"
The rate is secondary to the pricing model. First, ask a processor what pricing model they're quoting, then ask about their rates and fees. Personally, I recommend only pass-through pricing.

If you see the words qualified, mid-qualified, or non-qualified in a processor's quote, run.
These are the buzz words of bundled pricing. It's literally impossible to know what you're really paying on a bundled pricing model. Again, stick to pass-through.


Never sign a contract term with a cancellation fee.
All merchant processing agreements are contracts, but not all have a term and cancellation fee. Do not sign a processing agreement that carries a term and cancellation fee. There's no need for them, and there's no way out other than paying. I help people all the time who have been taken advantage of with ridiculous cancellation fees.

Insist on monthly settlement.
Processors can set your merchant account up to settle daily or monthly. Be sure to insist on monthly settlement. This way you will receive gross receipts throughout the month, and the processor will deduct its fees in one lump sum at the end of the month.

Monitor statements EVERY month – especially the announcements area on the first page.
Processors can't raise your fees without telling you in one way or another. Most processors post changes regarding fees in a notification section on the first page of your monthly processing statement. It's imperative that you read this section each and every month to stay abreast of changes to your account.

Paypal is a an option if your processing volume is low otherwise you will be over paying. If you process larger amounts of money there are other more cost effective solutions. The most important factor when choosing a payment processor is their ability and willingness to explain to you all your costs and fees associated with the acceptance of credit card payments. Also be sure to understand your rates, knowing the difference between tier pricing and interchange plus is very important in securing the best rates for your business.

Paypal is a an option if your processing volume is low otherwise you will be over paying. If you process larger amounts of money there are other more cost effective solutions. The most important factor when choosing a payment processor is their ability and willingness to explain to you all your costs and fees associated with the acceptance of credit card payments. Also be sure to understand your rates, knowing the difference between tier pricing and interchange plus is very important in securing the best rates for your business.

There are tons of factors that go into a merchant account. You need to talk to someone you trust that makes logical sense when they explain things to you.

If it sounds too go to be true it probably is.

I was given the task of finding a new merchant processor for the company I work for. We had an account with Wells Fargo but they screwed us over so we decided to change. I contacted over twenty companies and researched many more, including PayPal. What I found was an unbelievable amount of hidden rates and fees that are being charged by companies using the "tiered" billing system.

Through my research I found the most transparent and least expensive form of processing is interchange plus pricing, also called pass through pricing. This pricing used to be reserved exclusively for large companies, but now it is offered to anyone. The leading company offering interchange plus pricing is InterchangePlus Solutions.

As far as PayPal goes, an average of their rates came to ≈2.54%
InterchangePlus Solutions averaged to just under 2.00%!

At the amount we process that will save us about $115/month in processing alone!

Bottom line: PayPal is a bit more convenient, but you will have to pay for it....

Hi,

I actually work in the Merchant Processing industry.

A few tips about how it all works.

PayPal has been great for a lot of people. One thing to keep in mind is that there was an act passed through Congress called the Frank-Dodd act. In this is the Durbin Amendment. The Durbin Amendment will go into place October 1st. Under this Amendment Debit card rates will be drastically slashed. Being that PayPal works on a flat rate, those savings will not be passed on to a Merchant. Debit cards should show a charge to Merchants of well under 1.00%. In many cases Debit Cards also = up to 75% of cards used at a business.
The best way to access these rates is to operate with a Processor who works under an InterchangePlus pricing structure. In this structure you pay only what Visa and MasterCard charge plus a markup to the Processor.
This Processor markup is called Basis Points. If you pay 50 Basis Points to a Processor then you are paying 0.50% on each transaction to them.
If you look at your Merchant statement and see the terms Mid-Qual or Non-Qual then you are most likely paying too much. Find a Merchant who operates under an InterchangePlus Pricing structure or ask your current Processor to switch you such a plan. Every Processor can do it, many choose not too.
Hope this helps.

Thanks for sharing Matt, welcome aboard :standingw

We are also a payment processor. We can do your website development, shopping cart, and gateway integration. We also make your site Search Engine Optimized and can provide an SEO plan to help you get to or near the top of google. It is a seamless process.

Interchange plus is most definitely the way to go. You will not only know exactly what you are getting charged by your processor you will get the lower rates that congress secured passed through to you.

With us, if you batch before 10pm Eastern time you will get your money the next morning. Just make sure you are with a bank that will give you access to posted ACHs(Usually the larger ones.)

If you have any questions feel free to call me. Philip 864-735-5366

Hi MattIPS and thank you for you post.

I am now doing a lot of reading and researching before i start my own online business.

Many times I have heard from colleagues at work that PayPal suddenly changes things and has a "jerk-reaction" as they call it. As i understand it from their experience, Paypal just changes things on people that use their system to sell products or services. The people that have told me all these negative things about Paypal just hate it with a vengeance.

So i am very hesitant to give them a try.

Is there any truth to Paypal changing things on its customers and causing a nightmare for businesses that depend on their revenue coming from Paypal?

Kathy

Hi Kathy,

I can't speak entirely to the situation but from what I understand PayPal does change their rates each month according to the amount of business the Merchant did the month before.
I know they have various charges for some of their programs including a Gateway but I don't know exactly if everyone has to pay the charges or how often they fluctuate.
If you have any more questions or need some help feel free to email me at [email protected]

Hope this helps Kathy

What paypal does is put a risk hold on your funds. I have gotten many clients because of this issue. They usually hold 30-50% of your funds for 3-6 months in case of chargebacks. This is very strict compared to a real merchant account. I have almost never seen chargbacks holds on standard merchants. They are reserved for high risk merchants like the adult industry and collections.

Call me if you have any more questions - 864-735-5366

[email protected]

This is a wonderful forum ... many nice helpful people.

Thanks Philip.

Any idea on the best ecommerce service provider for selling eBooks?

Thanks
Kathy

In the last week I have been reading about merchant accounts and how they work, merchant providers (and all the names they call themselves, e.g. merchant bank, merchant services, acquiring banks, ISOs, etc.) and have come across lots of confusing and contradictory information. I wish I could find someone who was an expert on this subject, although i would feel sorry for her/him since I would bombard them with 100 questions.

Anyways, what i want to know is if anyone has got a merchant account from a reputable company for the purposes of what i need and maybe you can explain to me what your rates are (if you want) so that I know what the level of rates and fees and charges I should expect to pay for.

Here's what i am currently thinking of doing as an Internet business:

I want to offer a resume service whereby I help people to either get from me 1) custom developed resume, 2) about 50 sample resumes for their industry to use as a template, or 3) get a subscription to my service that will give them many different benefits.

If you have a business similar to this and have gotten merchant account for it, i would very much appreciate if you contact me and would even consider paying you for your help and advice.

Any information to help me get started and avoid pitfalls would be great.

Kathy

Kathy, unfortunately I don’t know much about PayPal or internet based business, but there is some info you might find useful.

First of all you should never sign contract with early termination fees or some will call it “reasonable amount of liquidated damages compensation”.
In most contracts it will be pre-printed in the back, so you have to ask for signed Addendum from processor before signing contract. Do not accept verbal promise. Just tell them that there are many processors who believe in keeping business the old fashion way – by earning it. If they refuse, say good bye. Not having early termination fees will give you an ultimate negotiating power in the future. You will need it later. Do not be afraid to be firm. It’s very reasonable request.

In application put twice higher amount than anticipated for monthly volume, average ticket and highest ticket. As soon as merchant account open call processor and find out what exact limits you have been approved for. (It may be different from what you applied) You have to know and stay under your limits. If you need to process higher volume than approved, call processor to get permission. If you don't, bank or processor may hold your funds for a long time. It’s called “Reserve Account”. By signing contract you giving permission to processor to hold any funds at their own discretion, every contract has it and many business owners suffer because they were unaware of this rule. Consult with processor.

In internet business all your transactions will fall under category e-Commerce Basic. For example: if customer buys $100 product using Regular Visa it will cost interchange fee of 1.80% + 10 cents plus assessments of 0.0925% or 9.25 cents plus processor's mark up of ….could be 40 – 50 cents. All together it might cost $2.5 – $4.
Somebody please correct me if I’m wrong.

Another thing to pay attention is Chargeback.

I would go with midsize processor like Payment Logistics or Netcom Pay System.

Hope this helps and good luck.