Actually, there's two choices - you can get a merchant account and process the transactions directly or you can use an external site such as paypal or google checkout. If you direct people to paypal for payment, there should be a choice to sign in to their account or enter a credit card directly - either way the payment goes to your paypal account. The link to enter a credit card seems to be increasingly difficult to find since paypal wants people to use their accounts whenever possible (costs less for them) but it is an option.
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