jecasc - 3:28 pm on Aug 14, 2008 (gmt 0)

Don't forget interest and liquidity in your calculation. Some processors keep your funds for several weeks. This can be expensive, especially when you start with your business and your liquidity is low.

When I started several years ago I opted for Paypal because I could transfer the money to my bank account immediatly and so I was able to use the cash discounts for immediate payment with my suppliers. This were between 2-5 % of the invoice amount. I also avoided having to use overdraft credits or my credit card.

So if your account is always in overdraft or you can't use cash discounts, or have to go into debt with your credit cards because your credit card processor keeps your money too long it might be worth considering switching to another processor where you pay more but get your money sooner.