But I'd pay $25 a year in a heartbeat, otherwise I'm shuffling between free tiers.

Charge annually? I use Zoho for email because of their $12/year/user lite usage plan. There's no way I'd pay for MS365 or Google Workplace given my usage. I also have an MXRoute account, historio.us, etc. where the recurring theme is they cost $20/year or less.

Credit card fees are negotiable with most processors. You can get a fee structure that is optimized for low dollar transactions.

That minimum fee has recently increased. Like 1-2 months ago. You are not going to negotiate that down with VISA/MC. Talk to a bar/restaurant worker, who gets to see the transaction fees.

I own an MSP and we have wide latitude to set rates with our customers. The numbers that were in the example ($.50 plus on a $2 transaction) are on the high side of ridiculous, especially for card present. And yes, the base costs vary by industry so your milage may vary.

You think card is present when you sign up for dropbox?

No, poster mentioned restaurants & bars, which generally are card present.

Charge yearly... Works for domains..

Sure.

Domains are really close to 0 support. Can you email support questions when Dropbox starts acting weird? For $10-$20 a year, one support ticket makes the customer unprofitable for the entire year.

Real thin margins, seems gross to try and build a business on the $1-$2 a month thing. I wouldn’t.

Works for a Titans like apple and google because they are making money in other ways..