That's about the same as you will pay for a Credit Card Merchant Account for a small business. You might be able to get 2%, but with additional monthly fees.

when I last checked, paypal was not a bad deal.. 3% but you pay no monthly like others say, which can add up. There are a lot of credit card processors who can quote you rates... you can do the math to see how much monthly volume you need to make it worth while, and I think if you buy a used card reader on ebay (vs. leasing from the card company), you can get a slightly better rate if you swipe the physcial card (vs. an online transaction where you never saw the card). The #'s may have changed, but when I last checked, you'd need to me making a 'real' living form this in order to make the monthy fee pay off. (vs. the paypal 3%). card services international would be one example company (I don't have anything to do with them fyi).