Different Types of Payment Gateway Integrations

The system works as a link between the website and the payment provider or card network and authorizes and processes online payments.

An online business or service provider cannot thrive without offering digital payment options to customers in this modern-day and age. As the demand for online shopping and services keeps growing, the need for enabling various digital payment solutions will become more dynamic and integral for businesses and customers. 

Therefore, having a secure payment gateway  is crucial and critical for the survival of a business in the long run. In addition, online payment gateways ensure a seamless and smooth experience for customers by making payments more secure, flexible, and convenient. Moreover, these solutions increase a business’s chance of improving sales and scaling up.

Most merchants who offer online payment options do so by opting in for a best payment gateway integration, allowing them to accept and process online transactions easily. The system works as a link between the website and the payment provider or card network and authorises and processes online payments.

Types of Payment Gateway Integrations:

There are multiple types of payment gateway integrations that you can opt for, such as a hosted payment gateway, self-hosted payment gateway, and API or non-hosted payment gateway integration.

Let’s have a look at each of these types in detail.

Hosted Payment Gateway Integration

In a hosted payment gateway integration, customers are directed to a secure payment page hosted by the payment service provider every time they initiate an online transaction. This is a third-party gateway that processes the payments outside the merchant’s website.

Once the payment is processed, the customer is directed back to the merchant’s website to complete the checkout process. A hosted payment gateway is easy to set up, customizable and has a simple and easy-to-use interface, where all payment-related information is processed by the service provider hosting the secure payment page.

Most of the payment service providers are PCI compliant and offer fraud protection which is an added advantage of such a gateway. However, the only downside to this arrangement is that the payment page is hosted outside a merchant website’s ecosystem; therefore, they have no control over the user experience of the payment page. 

 Self-Hosted Payment Gateway

If you want more control over the entire checkout process, then a self-hosted the best payment gateway integration is a better alternative to hosted payment gateways.

Here everything from online shopping to processing the payment and checkout happens within the merchant’s website. It allows the merchant to offer a more customized and flexible online payment experience.

The downside to this kind of arrangement is that the merchant is responsible for ensuring the overall security and integrity of the payment gateway system since they are responsible for the protection of all cardholder data.

API or Non-Hosted Payment Gateway Integration

A customer can enter payment details directly on the checkout page to process their online transactions using an API or non-hosted payment gateway integration. There is no redirection whatsoever, and it provides a customer with a one-page checkout experience.

Moreover, merchants also have greater control over the user interface, allowing them to offer a more flexible and customized approach. However, just like a self-hosted payment gateway integration, here too, the merchant is responsible for providing a secure experience to the customers.

All compliance requirements related to PCI, DSS, and SSL certification have to be taken care of by the merchant to protect valuable financial information from leaking and fraud prevention.

 No matter which payment gateway integration you decide to go in for based on your business’ unique requirement, there are a few factors that you need to consider before opting for any of the payment gateway companies.

    • Transaction Fees of the payment gateway provider
    • The sign-up experience
    • Support for multiple currencies
    • Available payment options available to a customer
    • The user experience of the checkout page

Payment gateway integration is crucial for ensuring that customers have a great online shopping experience and offering them a secure and convenient option for making online payments. 

If you are a business owner and looking forward to scaling up your business, then having a robust payment gateway option is the ideal way to go!

Also Read: Knowing more about Credit Reports and Credit Scores

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