I am starting a business that involves the transfer of very small amounts of money - as low as $1.00 even. I'm trying to figure out a way to have customers transfer this money to me, and for me to transfer money to customers, with the lowest amount removed via transaction fees. What merchant systems are best? Do some charge monthly fees and not transaction fees?
Basically customers pay $1.00 for access to my site, they earn money on my site, and I pay them when they "cash out" their accounts - say $1.00 and up.
Andrew, I believe PayPal should work best for you. As far I know, almost all payment gateway providers (including PayPal) charge minimum transaction fee (it's about $0.5 usually), so keep in mind your earnings will never be good if average transaction amount is about $1