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We are thinking about using Magento for our small business. For transactions, can we charge the end customer just like a regular physical merchant or do we have to go through any 3rd party sites using Magento to charge?

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You can integrate SagePay, Paypal, etc payment gateways as Direct or Form.

Direct would mean that whole payment and transaction is completed without leaving Magento site, and Form would re-direct customer to a 3-rd party website to complete payment.

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