E-Commerce is a process of performing your online business through your website usually to sell your product eg. Computer products or to provide services eg. SEO, Hosting. Usually the payment is received through Credit Card termed as Merchant Account that allow you accept payment automatically to you account. You don’t need to involve here. This is the smarter way to extent you business and get International Reorganization.
A business providing merchant account establishment and transaction processing payment related services. It may also provide e-commerce software and handle such things as digital delivery, Payment verification.

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Interesting topic. I had always wonder if getting your own merchant account is the best or outsource to a third party provider like paypal is the best. I cannot seem to get a grip of the right answer. Any input will help.

Paypal is one of the cheapest and easiest to sign up to, avoid WorldPay, the are crap

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To avoid worldpay there are good solution in UK & EU like 2checkout, moneybookers, authorize, chronopay, multicards ect.

Do you have experience of using any of the providers you mentioned?

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I have used Fasthosts (Optimal Payments) in the past, and they were quite good. They charged about £20 per month and a one off set up fee, but they were good with support, even though they took a few weeks to process the account.