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What is a hosted payment page?

What is a hosted payment page?

Feb 7, 2024
Akin Kayim

Digital payment gateways allow shopping on demand, so your customer can move quickly from finalizing their order to making payment. A hosted payment page (HPP) is a neat web commerce solution which allows for speedy transaction processing and safe data transfer.

In this guide, we’ll go through the definition of a hosted payment page, how it works, the benefits and drawbacks, plus alternatives to consider. At the end, we’ll consider who should use a hosted payment page and why. 

What is a hosted payment page?

A hosted payment page is a secure web page provided by a payment service provider (PSP) or a third-party payment gateway that allows merchants to accept online payments without handling sensitive payment information directly on their own websites. Instead of integrating a complex payment system into their website or application, merchants redirect customers to the hosted payment page to complete the payment process.

Here’s a hosted payment page example:

So when you collect a digital payment via a hosted payment page, your customers will leave your website or app to enter their card details on another webpage – the hosted payment page – before being redirected back to your site.

How do hosted payment pages work?

Once your user clicks the “Buy now” link, your website sends a request for our server to generate the HPP. Then your customer enters their details on that page, and our technology carries out the entire transaction process.

That means the customer’s payment details travel through a third-party server rather than your own website or app server (which is the reason your business is not held to card processing regulations).

From a technology point of view, the HPP encrypts sensitive payment details through a process called tokenization. This is what makes the payment secure. 

The payment request is passed to the merchant acquirer (your bank), and undergoes further checks known as authorization and authentication. These processes happen within the blink of an eye. Your customer is then redirected back to your website, and you receive a notification that payment was successful.

You can find more detail – plus a diagram – on our Hosted Payments Page documentation.

What are the benefits of using a hosted payment page?

Using an HPP allows merchants to outsource the collection of payment details and the entire payment flow in order to focus on their core business. They offer a fast and secure way for your customers to pay and are one of the easiest methods of accepting online payments to implement.

Here are some specific benefits of using Checkout.com's HPP:

  • Support for Global payment methods including credit & debit cards, Apple Pay, Google Pay, PayPal
  • Compliance with PCI data security regulations
  • Custom branding with logos & colors
  • Support for 21 different languages
  • Mobile responsive design
  • Support for local payment methods including iDEAL, Sofort, Giropay, Bancontact, EPS, Multibanco, Przelewy24 & KNET
  • SCA & 3D Secure authentication
  • Card & input validations
  • Informative customer error messaging

It’s also easier to add new features or payment methods because you can ask your PSP account manager to arrange this, rather than integrating them yourself. 

Key features of a hosted payment page include:

  1. Quick Implementation and maintenance: A low code integration that removes the need for iterative development cycles to add new features. HPP enables merchants to receive latest features, payment methods and optimizations without needing any engineers to write code
  2. Security: Hosted payment pages are designed to meet high-security standards, including compliance with the Payment Card Industry Data Security Standard (PCI DSS). By redirecting customers to a secure payment environment hosted by the payment service provider, the merchant reduces the risk of handling and storing sensitive payment information.
  3. Optimized payment experience: Tailors the experience to show only the relevant payment methods based on the customer details such as location and device. It also comes bundled with numerous optimizations like translations, customer input validations and informative customer error messaging to name a few
  4. Mobile responsiveness: Hosted payment pages are typically designed to be responsive, ensuring a consistent and user-friendly payment experience across various devices, including desktops, tablets, and smartphones.

Drawbacks of hosted payment pages

While hosted payment pages offer several advantages, there are also some drawbacks associated with their use. It's important for you to carefully consider these limitations before deciding to implement a hosted payment page solution for your business:

  • Limited customization - Hosted payment pages often have limited customization options when compared to integrated payment experiences. You will face more restrictionsin terms of branding and the overall look and feel of the payment page. This can lead to a less seamless integration with the rest of your website.
  • User experience - The transition from your website to the hosted payment page and back may create a less fluid user experience. Some customers may find the redirection process confusing or less intuitive, potentially increasing cart abandonment rate.
  • Less flexibility for advanced features - Merchants with specific or advanced payment processing needs may find hosted payment pages limiting. If this sounds like you, other integrations like Payment Components or end-to-end API integrations provide more flexibility for implementing custom features and functionalities tailored to your specific requirements.

Who should use a hosted payment page?

A hosted payment page is for merchants who want to outsource the collection of payment details and the entire payment flow in order to focus on their core business. It’s therefore best suited to merchants without the resources to build a custom payment infrastructure.

As a ready-made solution, it requires minimal technical work from the business owner’s side. That means it’s suitable for busy business leaders with a lot on their plate.

A hosted payment page does not have to be your business’ only means of digital payment, but can be part of a broader integrated payment solution.

Alternatives to Hosted Payment Pages

If you don't think using a hosted payment page meets your needs, you can use a different integration approach such as payment components or building your own end-to-end API integration.

Payment Components

The Payment Component is a pre-built payment user interface which you can embed directly within your website to manage the end-to-end payment experience and enable you to build frictionless and delightful checkout experiences with a highly customizable, modular payments integration. Optimized to meet industry regulations and drive conversion with built-in validation, error messaging, and dynamic payment method display. The Payment Component can easily unlock new markets and scale your payment methods through a single integration whilst providing the most optimized experience for your customers.

Payment components plug directly onto your website.

Research indicates that 55% of shoppers have permanently abandoned shopping on a website due to the absence of their desired payment option, whether it be via card, mobile wallet, buy now pay later plans, or local payment method. The Payment Component enables merchants to add a range of payment methods seamlessly via a single integration that’s embedded directly into their existing checkout experience. 

It’s optimized to drive checkout conversion by dynamically sorting & filtering payment methods based on the shoppers specifics like location, currency and device. 

The Payment Component effortlessly scales payment method acceptance by turning on new payment methods via configuration, not code removing the need for continuous engineering bandwidth to introduce new payment methods. It also provides a future proof solution to reduce regulatory and compliance burdens like PCI and region specific regulations. 

It’s also easy to integrate and get started so you can start accepting payments in hours not weeks.

Payments Components is currently in Beta, contact your Account Manager or [email protected] for more details. To get started, click here for documentation.

Full API integration

There is also the option for you to build your own full API integration and send payment requests through your own server. This method requires more engineering resource and - most likely - a dedicated team of payments technology experts and data compliance managers (as you will be responsible for managing your customers' card data).

The key benefit of integrating via API is that is offers the greatest level of checkout customization. It gives you full control over the design, function, and data transmission of the payment gateway.

But the drawbacks are that you need more engineering resources to build the integration and extra work is required to make updates, such as introducing a new payment method. You will have increased PCI compliance responsibilities and will need to provide PCI SAQ (Self-Assessment Questionnaire) D rather than SAQ A.

For more information on how to accept a payment using the API, and on the PCI SAQ technical requirements please see our documentation.

Unlock your payments potential today

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February 7, 2024 18:00
February 7, 2024 18:00