I lot of our clients ask us, "What type of payment system should I use?". I recommend Paypal when you're starting out. That's mainly because the third-party processor is so widely known as a secure system for accepting online payments.
While there aren't any sign-up or fixed monthly charges for PayPal's basic service, Barkat cautions that PayPal's seller fees "can really add up quick." PayPal sellers pay a 2.9 percent transaction fee on the total sale amount, plus a 30-cent fee per transaction.
Authorize.net is another popular payment processing solution that I recommend. The processor charges a $99 set-up fee, plus a $20 monthly fee and 10 cents per transaction.
Still, many shoppers prefer to pay for online purchases with their own credit cards rather than use PayPal or other third-party payment processors. You can obtain a merchant account with each individual credit card company. Many charge fees per transaction ranging from 20 to 50 cents, plus a percentage of the total purchase amount. Some also charge monthly, quarterly and annual fees.
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