I'm intrigued by Paypal's virtual terminal service - it lets you accept credit card numbers by phone, fax, or in person, and key them in manually. The advantage of this approach is that you take the overhead away from clients - ie. they don't need to sign up for a Paypal account.
The drawback is that the service costs $30/ month. So, unless you're anticipating a number of virtual terminal type transactions, it's probably not worth it.
My question - as far as volume is concerned the virtual terminal is worth it for me. But will it work with subscriptions? Ie. can I have the virtual terminal automatically withdraw from a client's account every so often? Or do I need to enter each transaction manually?