First, I would need you to clarify what you mean by "micropayments". To some, micropayments means that you run a low volume of transactions with a low frequency, so a merchant account may not be cost-effective. To others, micropayments is when you run small ticket transactions so low that merchant account fees would literally eat away at all the revenue, so accepting credit cards in general is not cost effective. Let me know which you mean, and I will share what I know.
What I meant by it is a high volume of small transactions (<$5). PayPal has a 5%/5cent model for it, but I was wondering if anyone had any experience with them to share, as well as with any other similar micropayment programs...
On a $5.00 transaction you'd be looking at $0.30 per transaction. Here are the qualifiers...how many of these transactions would you run in any given month? And, are you looking for solutions where a person needs to be registered for a micropayment service in order to use it, or anybody with a credit card/checking account can buy from you without registering for a service?
Can someone recommend how to go about selecting the merchant account/gateway/cart combination for micropayments?
Paypal offers one as an option within their Website Payments Pro - it marketed as simple, but can anyone testify to their experience with this plan? Issues? I have developers that can set it up, but have you found it a liable solution for the beginning while your volume is still building up? Long term?
Many thanks for any advice you can share.