[dcheong]

I believe you are referring to http://saasy.com/

It is a bundled payment gateway+merchant. You don't have to get PCI compliant and you don't need a merchant account (no min transaction volumes, fight chargebacks for you etc).

The down side is they only offer hosted payment pages and not suitable for everything... You need a finite set of goods/services you want to sell (eg monthly plans). You can't automate the process if you're building an online store where your customers can upload items for sale (eg AppStore).

[seanharper]

The terminology of payments is so weird:

Payment processors refer to their business customers as "merchants".

Entrepreneurs ALSO refer to their payment processors as "merchants".