I don't think it is a question of where is the cheapest BUT which country matches my industry the best? It is more expensive to have to change jurisdictions in the future if you don't get it right from the start.
I think what you need is a high risk merchant account. High risk doesn't always equal high rates. Different banks look at different industries as high risk where other banks may deem your industry low-medium risk. What sort of volumes are you doing? We manage a number of herbal merchants.
This is something you need to get right from the start. Depending on your industry there are some countries that are better suited than others. If your dealing with a bank in the same country they can often assist with incorporation at a reduced rate. Let me know your industry and processing...
MyOwn1 - All depends on which industry your operating in and what types of volume you are processing. Any decent PSP should be providing you with customer support (Phone, Skype, Email), weekly reports and fraud controls. Let me know if I can help.
Hi Orbit - What industry are you in? What are your processing volumes? I agree with you regarding conversions - redirects to 3rd party payments kill conversion rates - even with brands like PayPal. Let me know if I can help.
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