The challenge: a $1 purchase?

[SurplusHP]

I want to make a BILLION DOLLARS one dollar at a time.

So lets say I'm selling an item for a dollar. And I figure for a while I'm only going to do $1000 in sales in a month.

For a baseline on this challege, assume I can get a merchant account auth combo (http://www.merchant-accounts.com/merchant_account_faq.htm) for a $23/month in fees (which means 2.3 cents per transaction) which will charge me 25 cents/transaction + 1.5% of the purchase price. So that would be 28.8 cents of every dollar revenue.

Any suggestions for doing better? Anyone with experience selling low price items (under $2) online?

Thanks for any ideas. Best suggestions win a prize. Not really -- that's just my evil marketing twin talking.

:apu:

[Q151]

Hmmm, an interesting conundrum for sure!

Have you looked into one of the ecash/micropayment-type providers? They are setup for this sort of thing, so they usually have lower rates.

[GordonH]

Paypal would probably be cheaper because they give big discounts if you are running large amounts through them.
That way it would get cheaper as time went by.

[Corey Bryant]

Paypal has a introduced something last year PayPal Introduces New Micropayments Pricing to Increase the Convenience of Purchasing Digital Goods (http://www.shareholder.com/paypal/releaseDetail.cfm?ReleaseID=171765)

[RAMCS-ltd]

Any suggestions for doing better? Anyone with experience selling low price items (under $2) online?

Thanks for any ideas. Best suggestions win a prize. Not really -- that's just my evil marketing twin talking.

:apu:

My suggestion if you are pricing that low is to collect on an annual, semi-annual or quarterly basis to make it worth your while to proccess online.