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How do you set up a cheap low cost merchant account?
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I use Google Checkout. There is little or no up front cost and they have pretty reasonable fees. I have found it easy to use. For e-books and software, I like Clickbank. Both of these allow you to get started with no upfront costs, then if your business takes off you can get a real shopping cart and merchant account.
merchant accounts vary greatly in fees and complexity, it is probably best to use ebay, paypal, or any other already established merchant account with a simple fee scedule to keep from being overwhelmed.