I've never seen rates that low for recurring payments. Swiped cards in a brick-and-mortar, sure. The kind that batch nightly. But not for a SaaS where someone types in a card and you keep charging it for the next 36 months.
Recurring payments is a minimal risk after the first payment processed. If you're going to set up recurring, having an ACH transfer from bank account is going to be cheapest, or debit card paid via ACH.