I've had no problems with paypal, selling mostly in the UK; I charge £12.50 &#38; get £11.87 from them. Overseas customers see whatever the paypal converted cost is in their currency.
But if you're taking recurring payments (say monthly) then definitely look into setting up direct debits - zero or tiny transaction costs. The downside of this is that you'll have to get signed paper mandates until your bank sponsors you to automate this.