For selling in North America Paypal is a must. On the other venues that we use/used we sold about 95% paypal 5% MO. 100% of my European & Asian sales were via paypal. If you get a customer from Froogle the chances are that they will already be registered with Paypal. On a personal note if I can't pay with paypal or MO, I'm not about to register for another service.
BTW -
A PayPal surcharge is only allowed for UK to UK sales. Sellers are allowed to charge up to 3.4%+20p surcharge for accepting PayPal payments anything more is considered by Paypal excessive and they could take action if you are reported.
Paypal can and does freeze the accounts of people they feel are using their service to collect funds acquired by what paypal feels is illegal sales. These could include Adult items but most often it is in relation to counterfeit or trademark infringing items/sales.