Loc: Sunnyvale, CA, USA
The little bit of chump change for a paid PayPal account is worth it (to keep everything onsite, without that 'on PayPal then back onsite, yatta ya'), but then you have to spring $50 for SSL, too, and you're stuck with assuming fiduciary responsibility for the records/data (versus PayPal stuck with that with the free accounts). However, the customer data should be in a hardened off place, anyway, and if it isn't, one doesn't have any business doing this kind of stuff. But, yeah, either way, free-$20/year or $100/year, this stuff is pretty cheap and simple for hosting-merchant account-store/cart software-SSL.
The only problem with a non-integrated thing, unlike the WP plugin or a Joomla store, is the additional sign-on, but that's not a dealbreaker if they really want your stuff, or if, however, with a lot of store/cart software accepting OpenID (that FB, Google, Yahoo, etc, OpenID'd), there's that, so kind of a single sign-on plus.
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