You can get yourself an internet merchant account from any of the major banks. I would recommend Natwest's solution which is called Streamline. You then also need a company to actually take the payments for you. These companies are called Payment Service Providers. The biggest two that come to mind are ProTx and Paypoint but there are many others.
You then just send the customer on to a payment page on your PSP's servers and they take the payment for you.
Using this method you are still charged for each transaction but as long as you are doing enough volume it should work out much much cheaper than paypal.
You will incur two charges, your PSP will charge you on each transaction. For debit cards this is usually a set amount per transaction and for credit cards it is normally a percentage (somewhere around the 2% mark usually). Your PSP will also charge you. What they charge you and how (i.e. monthly set figure, per transaction charge etc.) will vary hugely depending on who you use and what package you take, but it can be under 10p per transaction and is not normally percentage based.
There are other advantages with a proper solution like this as well, such as the security checks it provides (CVV2, AVS, 3D Secure) and features like defered payments. It is a bit of hassle to initially set up though so it depends how much you are selling as to wether it is worth doing.
Oh no not another dvdbunny thread.