2. The Selection of the payment type should be put onto the View Cart page.  If a single payment type is available then it should be preselected.  If you are offering a choice of payment types, then the administrator should be permitted to select the default payment type.

The suggestions above are intended to minimize the step needed for a successfule transaction to be completed, and maximize the sales possible.  If you have purchased anything on the internet, most of the decisions are already premade, reducing the interaction required to complete the sale.