Anyone who has ever sold anything online or off knows that one of the biggest hassles is finding and setting up a credit card processor, which can then incur substantial fees.

It was with this reality in mind that TransFS was launched last year. The Chicago-based startup, which recently raised $510,000 in funding, provides a free Web-based tool for comparing credit card processors side-by-side, based on your business's specific needs. The service promises to save companies an average of 40% on processor fees, which can make a dramatic difference for smaller businesses.

Upon signing up, TransFS customers are asked to supply some information about their current payment processing practices and amount of sales. Once this information is submitted, it goes up for auction before several credit card processing companies, who instantly bid on it. These companies pay TransFS when their bids are selected by a customer, which is why the service can afford to be free for customers.

Finally, TransFS lists the competing processors, their fees and how much money one's company would save with each provider. The selection process - including signging the contract - all takes place from within the TransFS site, making the experience as painless as possible.

Given the frustration that typically goes with selecting a credit card processor, it would appear that cofounders Sean Harper and Joshua Krall are onto something here, a fact underscored by the recent infusion of cash by investment firms Hyde Park Angels and 500Startups.

International readers, please note that the service currently is only available in the United States.

Disclosure: TransFS is a sponsor of ReadWriteWeb. This is not a sponsored post.