HRoth - 12:52 am on Jan 21, 2012 (gmt 0)
If your profit is so miniscule that a shift from 2% fee per transaction to 1% fee per transaction would mean you could go from working 10 hour days to hiring a bunch of employees, then I would say the problem you are having does not have to do with transaction fees but that your prices are too low and your average ticket is too small. In the situation you are describing, your profit must be what, 5% or less? And you are selling one widget per sale? You need to set higher prices, or if you cannot, you need to find another niche or another kind of business entirely. Personally, I have set all my prices to include the fees that are charged by the payment processor, gateway, and bank. I think that is the usual practice. If anyone is paying those fees, it is the customers, same as they are paying for my stock, my packaging, my rent, my utilities, my office machines, my time, my knowledge, my ads, my TAXES, and everything else that goes into my business.
If we tear ourselves away from the teabagger economics of "socialism" and "taxes," then we recognize right away that no business in the world is going to offer us a set fee per month for transactions because we could have one huge transaction or millions of tiny ones for the same charge, or as you put it, "tax." Who's going to do that? Would you?
It doesn't matter how much it costs them to actually process the transaction. They are charging what the market will bear. That's not socialism. That's free market capitalism at its most quintessential. Don't like it? Make a revolution. Or become a Luddite and go live in a hut in the woods and run a mailorder biz cash only. The choices are right there.