I've had an actual merchant account through Itransact.com as well as through paypal.com. Itransact cost about $125 to set up (I believe) and had a monthly fee of $25 and I believe 2% per transaction fee. It was a lot better than paypal as you had more of a level of control over transactions and could cancel payments, issue refunds, or set up recurring billing with a few keystrokes. Unfortunately I wasn't able to afford to keep it going, but I'd give them a shot.
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