Jesse Cooper, a 19 year old college student at Middle Tennessee State University has created what he calls a micro-scholarship. He's looking for people to send him 25 cents to help him pay for college.
He contacted me to check out his site, and I gave him a few ideas, which he implemented right away. That's smart. Asking for help from those that have experience implementing blogs.
One thing I asked him to check was PayPal fees, since it seemed to me that he might end up owing PayPal with 25 cent donations and PayPal fees for credit cards, 1.9% to 2.9% + $0.30 USD.
It turns out that PayPal has a micropayments option for small payments, 5% + $0.05 per transaction. Now he's using that.
Reminds me of Savekaryn.com who ended up with a book deal.