There are various technical terms when it comes to choosing a payment gateway, this article will cover the meaning of the Hosted Payment Gateway and why you should consider using it for your online payments. Also, know the points to analyze when choosing one.
Looking to accept online payments? And going through various options?
There are various online payment mode options available and demanded by the customers. And in these new times of digital onshore, the payment gateway is the best one for your business due to various underlying reasons such as availability of multiple payment modes in one checkout, security, easy management, and much more.
Read this to know more about the payment gateways: Everything about the Payment Gateways in India
Types of Payment Gateways
There are two types of payment gateways: Hosted and Non-Hosted Payment Gateway
Hosted payment gateway is provided by the third-party payment service provider (PSP). It authorizes the transaction on its payment gateway page.
Meaning to say, when the customer clicks on ‘Pay now’ and proceeds with the payment on the website he will be taken to the third-party payment page of that PSP in a secure manner. When the transaction completes, the customer will be redirected back to the website.
Whereas, for a non-hosted, also known as the self-hosted payment gateway, the transaction is completed on the website itself with the customized payment flow.
Though you can control the user experience, it takes more technical work and cost to set up a self-hosted checkout on your website.
These days, Hosted payment gateways also provide these seamless or white-label payment gateways.
What is a Hosted Payment Gateway? How does it work?
Hosted Payment Gateway is a third-party payments software to accept online payments. It is also known as the Third Party Payment Gateway and its payment page is called the Third-party checkout or External payment page.
A Hosted Payment Gateway enables you to accept the online payments of the specific amount from the customers and also facilitates their settlements directly to your bank account. It facilitates the authentication and authorization of these online payments.
When the customer clicks on the ‘Pay now’ option, he is taken to its secure third-party page to process the payment further. He selects the payment method and moves forward with the payment details in a secure manner.
Also, the encryption standards make sure that the transactions are processed in an encrypted manner. Security compliance such as PCI DSS needs to be followed by the payment gateway, making the card processing completely secure.
PayKun is a hosted payment gateway. It charges the lowest transaction rates and has zero other charges. It provides easy onboarding and integration too. Also, its checkout is simple and smooth.
Benefits of getting a Hosted Payment Gateway
The third-party payment gateway service providers like PayKun are developed and designed to provide smooth payment processing with the best user experience. The most beneficial point of using these gateways is the easy integration. Below are the other benefits.
Hosted payment gateways provide various products and features that make payment acceptance easy and convenient. You can integrate it with the website or mobile application. Other features are available, such as EMI payment method, Payment Links, Master Payment Links, Merchant dashboard tool, etc.
When a reputed payment gateway is used to accept online payments, it would earn the trust of your customers as it provides them with the confidence to proceed with the payment. With a hosted payment gateway, you can get a merchant account only after proper verification. Thus, it gives a mark of authentication for your business, especially when it is a startup.
Apart from being reliable, it is secured with its various security standards such as PCI DSS compliance, Encryption standards, SSL, risk and fraud protection, dispute resolution, etc. This builds your and your customer’s trust which would reduce the cart abandonment rates.
With the hosted payment gateway being PCI compliant, the merchant gets saved from the lengthy procedure and cost of getting PCI certified.
The encryption standards enable the secure and encrypted processing of the transactions. The sensitive details are securely handled and remain protected.
Also, the fraud management and prevention tools of the payment gateway protect from transaction frauds and risks.
The hosted payment gateway provides ready multiple payment method options with a smooth and secure checkout. For example, PayKun provides 120+ payment method options including net banking, credit card, debit card, wallets, UPI, single QR code, and EMI. It also provides card payments for international transactions. This way, with a single integration the merchants can give many payment options to the customers.
Technically Easy and Fast
Integration of the hosted payment gateway is easy and fast. With the ready plugins and SDKs, PayKun can be integrated in minutes.
Analytics and Tracking
The PayKun merchant dashboard provides detailed analytics, transaction records, and graphical representation. It also provides various other functions for settlements, refunds, customer records, order records, reports, etc. which helps with the real-time data with the APIs.
Things to consider when choosing a Hosted Payment Gateway
With the benefits in mind, you might want to get a hosted payment gateway for your business payments. So, how can you choose one? Here are the points that you may consider taking into account the business requirements:
The payment gateway must have an easy and fast onboarding process with the complete guidance provided.
The cost is also an important aspect. Take into consideration the types of fees, the per-transaction charge and compare them to find the most cost-effective and affordable payment gateway for your business.
- Payment modes
You need to choose the payment gateway with the payment modes available which are in demand from your customers. Check for the payment method options available with the payment gateway and go ahead with the same.
Similarly, you also may consider the currency support in case you need to accept international payments.
- Plugin or SDK
To check if your website or application platform is supported and if there is a Plugin or SDK for the same.
- Effortless integration
See how easy it is from the technical point of view. For example, PayKun provides free integration assistance and ready integration kits which are also developer-friendly.
Smooth and secure checkout with a user-friendly and reliable interface. PayKun allows customization of the checkout in terms of color and logo to match it with the website or your business brand.
Thus, considering the benefits and the points you may choose a hosted payment gateway for your business online payments. It handles your transactions, provides real-time insights and payment information, and facilitates a secured payments processing. You might also mix and match and have multiple payment gateways to get the advantage of the characteristics of various payment service providers.