We accept credit cards direct as well through our own merchant account and terminal basically for the reasons you mention. Up until recently we did not accept PayPal at all but finally gave in last Spring. Initially we only had a personal account and would deny any credit card payments, since the big reduction in receiving limits we had to "upgrade", we still indicate in our listings and notices that we do not accept credit cards via PayPal but of course if someone uses one we would never know anymore since you no longer get the "you must upgrade to receive this credit card payment" (so that we can burn you severely on cash transfers).
We suggest in our notices that buyers call in their credit card information on our 24 hour toll free line, Fax the info or email (broken into a couple of messages). The methods our buyers seem to choose most often is email followed closely by telephone with only a handful of faxes out of thousands of transactions.
For buyers who don't want to give us cc info we suggest BidPay or of course money orders and cash.
I'm not sure how popular a faxback form would be, to much grief for a lot of buyers I would think. I'm also not sure if 1% is enough to convince buyers to see it your way unless you "force" the issue by restricting 3rd party methods (PayPal) of using credit cards.
The biggest downside to our method is that when browsing your listings don't indicate PayPal and you can't display the PayPal (with cc logos) logo in your listings. Some newbies don't even know how to send "cash" via PayPal.
As always your product mix determines how much control you can exercise over buyers. Over all the savings can be as much as your FVF depending on your merchant account charges, that 1.5% rate is very good, does it come with a per transaction fee?
Ben

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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