I love hate paypal. I never use them to transfer funds out of my account, since they make 3% on any direct transfers which at that point the fee has already been paid. When buying I charge it to the paypal credit card which gives cash back.
Merchant side we have been dropped from 2.9% to 2.5% and this is during the slow period so perhaps we can go lower to 2.2% We also have a paypal micropayments account which saves us money for all transactions under $12
TO spend money out of the account we use paypaldebit card. When we signed up we got the 1.5% cash back option. I understand they only offer 1% now.
This reduced our effective processing rate to 1% without any monthly fees. Authorize.net was nice for transactions over the phone, but now I just direct everyone to use paypal. I could sign up for the virtual terminal, but that would be an extra monthly fee for little return.
We would have to do far more than 3k a month to get a lower rate from the big banks.
Is there something else I am missing out of?