One of the things GoDaddy makes difficult is opening sockets to other sites. This presents a problem when you want verify say a PayPal payment. Also, PayPal and other sites tend to only allow for one Instant Payment Notification script per account. So, if you have a number of sites that have payments, they need to all work off the same IPN script. What I've set up to remedy is problem is a IPN gateway (currently PayPal only) which verifies the payment and then makes a post to whatever site I want, with the variables I need along with a verification key. Basically PayPal IPNs my gateway, the gateway verifies the payment and then the gateway notifies the site of the successful payment along with any needed information. The recieving site then just validates the information (correct seller email address, etc) since it's already verified to have come from PayPal. This way my GoDaddy hosted accounts don't need to try to connect to a remote site. And I can handle any number of items for any number of sites through a single IPN handling script. I was wondering if this is something other people would find useful.
If you are looking for an alternative solution you can have a look to these payment processors that might solve your problem; 2checkout worldpay chronopay moneybookers multicards protx authorize.net
The problem isn't PayPal. The problem is that GoDaddy doesn't allow hosted sites to reliably make outbound connections to remote sites. My gateway solves the problem by allowing GoDaddy sites to use PayPal with only inbound connections. The question is, are their other people out there that want to use PayPal but can't get it to work with their web-site because they can't connect to PayPal's servers? I'd never recommend using some shady processor unless you were running an adult web-site that can't use PayPal or Google Checkout.