Micropayment processing using Paypal or other payment processing service?

Question

Currently, I use PayPal for payment processing. Almost 90% of the items are sold for $.99 and would like to use Paypals's Micropayment account, but PayPal states "support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions". My company is located in the US but the customers are very global. Does this mean using Micropayment option, I can't take payment from someone who lives in Europe or outside the US? Currently I am using the regular account and I am paying $.34 for each sale, which is very unprofitable. Are there other payment processing service I can use with lower fee?

Thank you.

Answer 1

Unless you have insanely high volume like fast-food chains do, it is very difficult to obtain a merchant account where the transaction pricing is feasible for micro-payments. Most providers will suggest an aggregation model where you sell your content but only bill your customers periodically, i.e. bill them once a month so that several purchases are bundled together, making the transaction fees less of an impact.

Here is one provider offering such a model:

http://www.allcharge.com/services-billing-micro-payments.asp

I do not work for the above company (in fact, I work for a payments company that does not offer micropayments).

Not the answer you were hoping for, I'm sure, but hopefully it helps.