Hosted Payment Gateway vs. Non-Hosted Payment Gateway: Which is Right for E-commerce?
Choosing the right payment gateway is crucial for any e-commerce business & deciding between a hosted or non-hosted payment gateway can be challenging. This post discusses the differences between these two types of payment gateways, highlighting their features, benefits, and potential drawbacks.
Let's say you have made the decision to venture into the world of e-commerce and launch your own online store. Congratulations! However, the next step is quite challenging - choosing the most suitable payment gateway to process payments for your business. With numerous options to choose from, it can be tough to determine which one will best meet your requirements.
Payment gateways are typically classified into two types: hosted and non-hosted. Therefore, while starting your e-commerce store, one of the most important decisions is whether to use a hosted or non-hosted payment gateway. So, which payment gateway is right for you?
This post will discuss the differences between hosted and non-hosted payment gateways, comparing their features, benefits, and potential drawbacks.
Hosted Payment Gateway
A hosted payment gateway is a third-party solution that processes online transactions on your e-commerce store's behalf. When customers decide to complete their purchase, they are directed to the payment service provider's secure webpage. They can confidently enter their payment information here. After completing the transaction, the customer is directed back to your online store. The primary goal of hosted payment gateways is to relieve you of the responsibility of payment processing, allowing you to focus on growing your business.
Pros and Cons of Using a Hosted Payment Gateway:
One of the primary advantages of hosted payment gateways is their increased security. Because the payment service provider handles sensitive payment information, they assume responsibility for ensuring secure transactions, lowering your business's risk of fraud and data breaches.
- Easy to Use
Hosted payment gateways are typically simple to integrate into your e-commerce platform. Many providers offer ready-made plugins or modules, making it simple to get your payment processing up and running without extensive technical knowledge.
- Low Maintenance
Using a hosted payment gateway eliminates the need to maintain the payment infrastructure or stay current on compliance regulations, as the payment service provider handles these aspects. As a result, you will have more time and resources to focus on other aspects of your business.
- Limited Customization
One disadvantage of hosted payment gateways is the lack of customization options. Because the service provider manages the payment page, you may not have complete control over the payment procedure's appearance and user experience. This may result in a less consistent branding experience for your customers.
- Customer Experience
Customers redirected to an external payment page may become confused or distrustful, potentially leading to abandoned shopping carts. Despite its apparent security, some customers may hesitate to provide their payment information on an external site.
- Additional Fees
Hosted payment gateways frequently have additional fees, such as transaction fees, setup fees, or monthly charges. These costs can add up over time, making it critical to factor them in when selecting a payment gateway for your business.
A hosted payment gateway may benefit a small e-commerce store with limited technical resources. The ease of integration, low maintenance, and security features allow the store owner to focus on growing their business rather than worrying about the complexities of payment processing.
Non-Hosted Payment Gateway
A non-hosted payment gateway, also known as a self-hosted or integrated payment gateway, provides a solution that allows payment processing to take place directly on your e-commerce site rather than redirecting customers to a separate page. Customers enter their payment information directly on your website in this scenario, while the payment gateway handles the transaction discreetly.
Pros and Cons of Using a Non-Hosted Payment Gateway:
Non-hosted payment gateways provide more customization options than their hosted counterparts. You retain complete control over the payment processor's design and user experience, allowing you to create a smooth and consistent brand experience for your customers.
- Better Branding
A non-hosted payment gateway can strengthen your brand identity because the payment process occurs directly on your website. Customers consider the whole shopping experience part of your store, which can lead to increased trust and loyalty.
- More Control
Non-hosted payment gateways give you more control over the payment process, including adding extra features, changing transaction flows, and integrating with other tools and services. This can be useful if you have specific needs or want to tailor the checkout experience to your customers' preferences.
- Technical Knowledge Required
Implementing a non-hosted payment gateway requires more technical expertise than a hosted solution. You will manage the gateway's integration, customization, and configuration, which could be difficult if you lack experience in web development or programming.
- Additional Maintenance
When using a non-hosted payment gateway, you are responsible for maintaining the payment infrastructure, adhering to security standards, and staying updated on any updates or modifications. This can be time-consuming and may necessitate ongoing investment in technical resources.
- Higher Security Risk
Customers enter their payment information directly on your website, so you are more responsible for ensuring transaction security. Compliance with stringent security standards, such as the Payment Card Industry Data Security Standard (PCI DSS), is required, and implementation can be complicated and costly.
A non-hosted payment gateway could benefit a larger e-commerce store with a dedicated technical team and specific customization needs. Greater control and customization options can aid in creating a unique and seamless shopping experience, increasing customer trust and loyalty, resulting in higher conversion rates and revenue.
Which Payment Gateway is Right for E-commerce?
Integrating Both Payment Gateways: The Best of Both Worlds
Did you know you are not limited to using only one payment gateway? You can use both hosted and non-hosted payment gateways simultaneously, giving your customers more options and flexibility when making payments. CCPayment is one such platform that enables this seamless integration.
CCPayment is a cutting-edge cryptocurrency payment solution that aims to revolutionize the payment process for businesses and customers. CCPayment uses a unique unified payment API that can be easily integrated with any website or e-commerce platform to provide a secure, efficient, and contactless payment experience. This enables businesses to accept 45+ cryptocurrencies through a single checkout page, accommodating many customer preferences.
Advantages of Using CCPayment
CCPayment has several advantages over other payment gateways, making it an appealing option for companies looking to expand their payment options:
CCPayment secures all transactions with advanced, military-grade encryption, ensuring your business's and your customer's safety.
- Lowest Fee in the Market
With a low service fee of only 0.03% on API payments, CCPayment provides one of the most competitive rates in the market, assisting businesses in lowering transaction costs and increasing profitability.
- Asset Overview and Management
CCPayment offers a simple dashboard for businesses to manage their cryptocurrency assets, allowing for effective monitoring and control over transactions and balances.
- Multiple Crypto Choices
CCPayment caters to a wide range of customer preferences and assists businesses in tapping into the growing market of crypto users by accepting 45+ cryptocurrencies.
- Easy Integration with Existing Platforms
CCPayment's unified payment API allows for simple integration with existing e-commerce platforms, making it simple for businesses to begin accepting cryptocurrency payments without any technical barriers.
- 24/7 Online Support
CCPayment offers 24/7 online support, ensuring that businesses have continuous access to assistance when needed. This reduces downtime and improves customer satisfaction.
The payment gateway you choose for your e-commerce business is critical to ensuring a secure, seamless, and user-friendly shopping experience. Consider security, user experience, branding, technical expertise, and budget factors when deciding between hosted and non-hosted payment gateways. However, it is worthwhile to consider integrating both gateways and leveraging innovative platforms such as CCPayment to provide your customers with a truly modern, contactless, and diverse payment experience. Get started with CCPayment today to learn how their revolutionary cryptocurrency payment solution can transform your e-commerce business.