When I first looked for a business checking account when I opened my business, my personal banks required a minimum balance which I wasn't able to maintain at the time.
So I opened up an Ingdirect.com
for my business account. With that account comes a debit card with no minimum balance requirement. I even earn a little interest on the account. Transferring money out of the Ing account to pay an individual is done for no charge via email. In the years I have used Ingdirect.com I have never incurred any additional fees.
I always expected that I would eventually open up a regular merchant account at my local bank when my earnings increased but I never found a reason to do this. All exchange of monies have been electronic.
When a client pays me using PayPal, I transfer the money to my Ingdirect account so I don't use a prepaid card. When I want to use the money from the Ingdirect account I use my debit card which Ing sends when the account is open or I can also use the bill pay feature to pay a vendor. If I want cash from the Ing account, I use a local ATM machine at no charge.