Introduction

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.

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.

Key features to look for in a hosted payment page

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 the 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. Integrations: Hosted payment pages are typically designed to be easily integrated, ensuring a consistent and user-friendly payment experience across their customer base.

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 Transfi's HPP:

1. Support for Global payment methods including credit & debit cards, Apple Pay, Google Pay, PayPal etc
2. Compliance with PCI data security regulations
3. Custom branding with logos & colors
4. Support for local payment methods
5. Support digital asset and stablecoin payment methods 
6. Card & input validations
7. Informative customer support

What Types of Businesses Should Use a Hosted Payments Page?

There are very few businesses that won’t benefit from using a hosted payment page. Here are some instances where a hosted page is particularly helpful:

• You don’t want the hassle of managing payment processing. No matter the size of your business, managing a checkout takes up a lot of time and energy that could be put towards generating sales or refining your marketing strategy. By using an external checkout provider, you can let the experts handle your payment page and focus on what your business does best.

• You’re considering offering services that require recurring billing. If your business wants to offer a subscription box, some kind of replenishment service, or a retainer agreement,  you need a payment gateway with recurring billing capabilities. By getting a hosted payment page sorted out now, you won’t have to worry about changing your payment processing system in the future.

• You’re a large business with more complex PCI compliance requirements. The more transactions you process, the more requirements there are to stay compliant. If you run a sizable business, the hassle of keeping up with these regulations is very time-consuming. It makes far more sense to outsource PCI compliance to an external service provider to save both time and money.

If a hosted payment platform is not the match for your business, check Transfi for native payment gateways which will suit your needs of scalability, higher security and operational management. 

Read more: Native vs Hosted Payment Gateway Comparison: Benefits, How they work, Pros & Cons and more

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.

Hosted payment page with TransFi

Selecting the right hosted payment processor that consolidates billing, payments and subscription management tools is key to the success for your business. Transfi provides the following advantages over other solutions and gives valuable benefits to its users: 

1. Billing features: Transfi provides tools to support various billing methods, offers multiple payment options, provides robust fraud protection and includes robust subscription management.

2. Costs: Transfi comes with no transaction fees, minimal setup costs, and additional charges from various processors to fit the best fit for your budget.

3. Security and compliance: Transfi as a payment processor implements strong security and fraud prevention measures, complies with industry standards to protect customer data and collects taxes from customers correctly.

4. Customizability: The ability to customize functionalities and integrate with third-party software can help create a more seamless experience using Transfi.

5. Scalability: Transfi ensures to accommodate growing transaction volumes and expansion into new markets.

6. Localisation: for cross border payments, Transfi supports multiple languages and currencies.

7. Reliability: Transfi provides robust customer support and transparency in each and every step ensuring reliable means and legal compliances. 

Transfi is a cross-border infrastructure business focussed on enabling global companies to make payments in, out, and across the world. Transfi is one of the first ones to bring Virtual Accounts, combined with a global foreign exchange network, to countries across the globe providing flexibility of payment methods, currencies and stablecoins. 

Conclusion

Payment processing is never a merchant’s favorite activity to manage. By bringing a hosted payment page provider into the fold, your business can spend more time focusing on generating sales and customer relationship management—all with the confidence that your provider is handling all the nuts and bolts.

Be sure to customize your page and offer a broad spectrum of payment options to offer a seamless payment experience that keeps customers coming back for future purchases. Remember, a better payment experience is equal to a healthier bottom line!

Looking into ways you can leverage payment links for an even better way to collect payments from customers? Contact Transfi to discuss your needs and how Transfi helps you go beyond just standard hosted payment options.

Frequently asked questions (FAQs)

1. What is a hosted payment page?

A hosted payment page, also known as a hosted payment gateway, is a secure portal that allows businesses to accept payments online. It is operated by a third-party provider who offers data security and payment processing services for a fee.

2. How does a hosted payment page work?

A hosted payment page works by directing customers to an external page to enter their card information when they want to make a purchase. The payment gateway processes the transaction and transfers money to the merchant’s account. This system eliminates the need for the business to handle credit card transactions directly or store payment information.

3. Why should a business use a hosted payment page?

Using a hosted payment page offers several benefits. It provides a secure checkout with reduced liability, as the business isn’t responsible for the security of the payment process or protecting customer data. It’s easy to set up, offers optional recurring billing, accepts multiple payment methods, and provides a streamlined checkout experience.

4. What types of businesses can benefit from a hosted payment page?

Almost any business can benefit from a hosted payment page, but it’s particularly useful for businesses that don’t want to manage payment processing, are considering offering services that require recurring billing, or are large businesses with complex PCI compliance requirements.

5. What are the key considerations when choosing a hosted payment page provider?

Key considerations when choosing a hosted payment page provider include their level of PCI compliance, the payment methods they accept, the customization options they offer, and the ease of integrating their service into your website.

6. Do hosted payment pages offer recurring billing options?

Yes, many hosted payment pages offer subscription billing, which allows businesses to offer recurring services or product replenishment.