Paypal offers a separate fee structure for micropayments:

PayPal's micropayments price is 5% + $.05 and is designed for merchants who process low-value transactions (typically under $10 in value). The micropayments rate is available to all merchants and in all countries where Business accounts are available. If you sign up for micropayments, you will be charged the micropayments rate on all transactions regardless of payment size.

From PayPal: https://www.paypal.com/us/selfhelp/article/what-are-micropay...

I'm not sure about the answer to your question about different fees for microtransactions, but with their pricing, you would never get charged 25 cents. The minimum charge is $1.

The first four pages are $1, which I'm assuming is partly to cover that issue of their charge getting eaten up by payment fees.

This is correct.

The top payment processors all have a fixed component to their fees - we just absorb it into our pricing structure.

The transaction fee for $1 is still a lot. For example, in Stripe's case it would be 2.9% + 30¢ so about 33 cents. I guess if that's an acceptable margin, it's no big deal, but I was just curious if your company got discounted fees.

Yeah I wonder if they'd be willing to negotiate since this is a little different from the usual 99¢ app or whatnot. Sounds like a good service. No ads on faxes/covers, straight pricing, on demand without a subscription... All I'd need.