What's everyone's opinion on using third party charge processors vs. getting a merchant account? Pros and cons?

3rd party processors like 2checkout.com look tempting because you can be up and running quickly, recurring billing is handled automatically, etc.

Merchant accounts add another degree of professionalism though they require more paperwork and investment...

I'd like to hear experiences from people who are using/have used one or the other or both...

Thanks!

This is a topic that I think has been talked about so much people are starting to get sick of it. However if you must know, I think that if you are starting out that you should definately go with a 3rd party because with a real merchant account you will run into a lot of unforseen problems.

I think that if you are starting out that you should definately go with a 3rd party because with a real merchant account you will run into a lot of unforseen problems.
Er, which ones are those?
We got sick of getting the shaft from Revecom, and having no control over our customer's billing. It's pretty annoying when someone calls up and says they want to add a little something to their account. So you have to go and build a page so they can submit the SAME card they've already given you month after month. It's very unprofessional.
We went to charge.com, got a merchant account, and then dropped $140 or so on Modern Bill. We couldn't be happier.