While accepting payments, businesses of all kinds may face challenges such as the development of a payment system and the acquisition of essential licences and certifications which may be challenging and demanding. However, the complexities associated with the process can be largely eliminated by adopting a Hosted Payment Page (HPP). This approach not only enhances transaction security and simplifies PCI DSS compliance for merchants but also streamlines the checkout process for consumers. In this article, we will guide you through the basics of a hosted payment page and help you identify whether it is the right fit for your business.
What is a Hosted Payment Page?
A Hosted Payment Page is an external web page where customers are redirected to complete their payments. The term “hosted” indicates that the payment page is managed by a third-party payment provider, not by the merchant directly. This setup means that instead of handling the entire payment process on the merchant’s website, a specialised third-party executes transaction processing on its website on the merchant’s behalf.
Merchants using hosted payment pages do not receive or store sensitive transaction data on their end. This eliminates the need for them to adhere to PCI DSS as well as other regulations related to secure data storage in their region.
How Hosted Payment Pages Work?
Hosted Payment Pages operate by transferring the customer to a secure third-party website of a payment system provider to make a payment. Here’s a step-by-step explanation:
- Initiating Payment: When a customer is ready to pay, the merchant’s website generates a request to the third-party payment system provider.
- Redirection: The customer is automatically redirected to a secure HPP provided by the third-party service, hosted on the provider’s servers.
- Data Entry: The customer enters their payment information on the hosted page, and the third-party service proceeds with transaction processing.
- Transaction Completion: After processing, the customer is returned to the merchant’s website, receiving a transaction confirmation.
- Reporting: The third-party payment provider reports the transaction status back to the merchant’s website, ensuring the order is recorded and the purchase can be delivered.
Benefits of Hosted Payment Pages
1. No Technological Development
Businesses don’t need to undertake any payment infrastructure development or maintenance on their side to start accepting payments via HPP. The infrastructure is provided and maintained by a specialised third-party payment system provider, allowing merchants to focus on their core activities without diverting resources into maintaining payment systems.
2. Quick Implementation
Due to the pre-built nature of hosted payment pages, they can be quickly integrated into the merchant’s website. This allows businesses to start accepting payments swiftly, which is especially beneficial in time-sensitive situations like product launches.
3. Enhanced Security
In 2023, online payment fraud losses were estimated to be $41 billion globally, with projections suggesting this could rise to $48 billion by 2025. HPPs offer enhanced security as sensitive payment data is handled by the third-party provider, which adheres to stringent security protocols. This minimises the risk of fraud and data breaches, safeguarding both the merchant and the customer.
4. No PCI DSS Compliance
Achieving PCI DSS compliance can be costly. For small to medium-sized businesses, the average cost of initial PCI DSS compliance can range from $5,000 to $50,000. For larger organisations, this can be even higher. Since merchants do not handle or store customers’ sensitive data, they are exempt from PCI DSS compliance requirements. This not only saves businesses significant costs but also reduces the effort involved in meeting complex security standards.
5. Streamlined Checkout
Developed by experts with extensive experience, HPPs ensure the security of sensitive data while integrating a user-friendly design to minimise errors. This contributes to a smooth and reliable payment flow, reducing cart abandonment and improving customer satisfaction.
6. HPP Branding
Although hosted by a third-party provider, HPPs most often allow merchants to incorporate their branding, ensuring a consistent experience for customers throughout the payment process.
In What Cases Should I Use a Hosted Payment Page?
1. Handling International Transactions
HPPs support multiple payment methods and currencies, allowing businesses to deal with international customers. This ensures a smooth checkout experience regardless of the customer’s location.
2. Limited Technical Resources
For businesses with limited technical resources, a ready-to-go HPP is a simple and cost-effective solution for accepting payments online. It requires minimal technical effort from the merchant’s side, making it accessible to businesses of all sizes.
3. Need for Quick Implementation
In cases where speed is crucial, such as launching a new product, HPPs can be implemented rapidly, enabling merchants to start accepting payments in a matter of days.
4. Avoiding PCI DSS Compliance
For businesses that prefer to avoid the complexities of PCI DSS compliance, HPPs offer a hassle-free alternative, with the payment provider assuming responsibility for meeting security standards.
5. Enhancing Transaction Security
By using an HPP, businesses can add an extra layer of protection to their payment process, reducing the likelihood of fraud and ensuring customer data is handled securely.
When Should I Look For Another Options?
1. In-House Technical Expertise and Resources
If your business has the necessary financial resources, time, and a skilled development team, building and maintaining a custom payment system may be more beneficial. This allows for greater control and customisation of the payment process.
2. Advanced Customisation Needs
Businesses requiring highly specific checkout page customisations may find HPPs limiting. An integrated payment solution may be more suitable for brands with complex needs.
3. Specific Integration Requirements
If your business needs specific integrations that exceed the capabilities of HPPs, such as real-time synchronisation with proprietary software, an in-house solution or alternative payment gateway integration may be necessary.
How to Choose and Integrate a Hosted Payment Page Provider?
When selecting a HPP provider, consider the following factors:
- Security Standards: Ensure the provider adheres to PCI DSS and other mandatory security protocols.
- Ease of Integration: Look for providers that offer seamless integration with your website and provide support during the setup process.
- Customisation Options: Discuss customisation options to ensure your brand’s identity is maintained throughout the payment process.
- Supported Payment Methods: Verify that the provider supports the payment methods, countries, and currencies relevant to your business.
- Costs: Review the transaction fees, setup costs, and any other associated expenses to ensure they fit within your budget.
Integrating an HPP involves several steps that may differ between providers:
- Choose a Provider: Select a provider that meets your business needs.
- Create a Merchant Account: Register in the provider’s system and submit the necessary business information.
- Customise Your Checkout Page: Align the checkout page with your brand using custom logos, colours, and design elements.
- Integrate HPP with Your Website: Obtain integration code or API credentials and embed them into your website.
- Run Tests and Go Live: Perform necessary tests to ensure proper integration, then switch to live mode and start accepting payments.
Reliable payment solution providers like Transferty are also ready to support your business at each stage of HPP integration, making this process faster and easier.
Conclusion
Adopting a Hosted Payment Page offers businesses a range of benefits, from enhanced security and quick implementation to the elimination of PCI DSS compliance requirements. However, it’s essential to consider your specific business needs when deciding whether an HPP is the right solution. By carefully evaluating your options and choosing the right provider, you can streamline your payment process, improve customer satisfaction, and focus on growing your business.
With the increasing emphasis on online security and customer experience, HPPs are becoming a critical tool for businesses looking to optimise their payment processes. Whether you’re a business seeking simplicity or needing scalability, HPPs provide a flexible, secure, and efficient solution for managing online transactions.
