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I am having this exact issue. I’ve uploaded the plugin into the /plugins/ directory, chmod’d the merchants folder to 777 as mentioned above. I then agreed to the terms in the Options >> Offline Credit Card page, and then configured my settings. But like I mentioned, I’m not getting the Offline Credit card option to show up Settings >> Store >> Payments.
I’m running WordPress 3.3 with wp-ecommerse v220.127.116.11
Any help would be greatly apprecated.