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I just want to know if it is possible to use JVZoo as a payment processor on my website (like PayPal, 2checkout, etc.) Or is it just for affiliate based sales creation?

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According to this forum, JVZoo is not a payment processor, it is just a payment gateway that uses PayPal behind the scenes.

JVZoo is not a payment processor. Without a payment processor such as Paypal, it wouldn't do anything. It relies on Paypal to process the payments.

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