I know a company I was working with had hassles with this as they hosted their ecomm software themselves. Compliance was required by their merchant account provider. The software (ASPDNSF) and payment gateway (SagePay) was compliant but the web and database hosting wasn't.
For small scale without a merchant account, I haven't found a better solution than PayPal.
Out of interest, for those who have merchant accounts, how much of a hassle is it to get one? What are the typical on-going costs?
Okay, it is your right to use what you want but when it comes to me, I usually use ZeroOne automation software and it perfectly suits my business. This software is very easy to use but it helps to sell digital products effectively. I made a big success while I was using it