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The payment gateway allows businesses to securely and seamlessly accept online payments for online businesses of all sizes. In this blog, we’ll discuss the workings of a hosted payment gateways in detail.
Understanding Hosted Payment Gateway in Detail
A hosted payment gateway is a type of payment processing system that stores encrypted payment details, like credit card numbers, offsite on dedicated secure servers. This helps merchants avoid having to meet the high-security standards required to directly process credit card transactions on their own servers.
With a hosted payment gateway, merchants can focus on running their business while an external payment processor securely handles all the payment details in the background.
What is a Hosted Payment Gateway?
A hosted payment gateway is a payment processing solution where the gateway provider hosts all payment functionality on their secure servers rather than requiring merchants to manage payment processing technology themselves.
With a hosted payment gateway, merchants simply integrate a hosted payment form or API into their website or application. When a customer enters their payment details, this sensitive card data is sent directly to the Hosted Payment Gateway provider for authorisation rather than being stored on the merchant’s servers.
This means merchants don’t need to worry about PCI compliance requirements for securing cardholder data, as the hosted payment gateway provider is responsible for all aspects of data security and transmission according to PCI standards. Hosted payment gateways take the hassle and expense out of payment security for merchants.
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Difference between Hosted & Non-Hosted Payment Gateways
The key difference between hosted and non-hosted payment gateways lies in where payment data is processed and stored.
With a hosted payment gateway, merchants avoid having to meet PCI compliance requirements for securing cardholder data by outsourcing those responsibilities to an external provider.
Non-hosted gateways require merchants to securely handle and store payment information directly on their own servers per PCI standards.
How do Hosted Payment Gateways Work?
The basic process of how a hosted payment gateway works is:
- A customer selects a product to purchase on a merchant’s website.
- The merchant website redirects the customer to the Hosted Payment Gateway provider’s secure payment form or page.
- The customer enters their payment details, like name, card number, expiration date, etc into the hosted payment form.
- The Hosted Payment Gateway provider securely transmits the payment details to the appropriate payment processor or bank for authorisation.
- If authorised, the hosted payment gateway notifies the merchant website that the payment was approved.
- The merchant fulfils the order, and the hosted payment gateway handles all settlements and funds transfers to the merchant.
- The hosted payment gateway provider is responsible for PCI compliance, as it receives, stores, and transmits sensitive card data through its secure systems.
Thus, the hosted payment gateway acts as an intermediary, taking card details directly from customers and communicating approval/decline back to merchants without sensitive data ever touching the merchant’s servers.
Secure Your Online Payments with NTT DATA Payment Services
NTT DATA Payment Services offers robust, PCI-compliant hosted payment gateway solutions to help businesses securely accept payments online. Merchants can focus on growing their business while our dedicated security teams ensure transactions remain safe and compliant using their hosted payment gateways.
NTT DATA Payment Services offers a complete payment solution to advance both your offline and online businesses from,
- Online Payment Gateway in India
- POS machines
- IVR payments
- Mobile applications, and
- Bharat QR Scan and Pay
We ensure maximum comfort, convenience, and safety for all your payments.
Conclusion
Hosted payment gateways provide merchants with a simple, secure and cost-effective way to accept online payments without the burden of PCI compliance. By outsourcing payment handling to a hosted payment, merchants can focus on growing their business rather than managing complex payment infrastructure.
With so many options available, NTT DATA Payment Services offers robust hosted payment gateway solutions to help businesses securely accept online payments and grow their digital sales.
Overall, adopting the best-hosted payment gateway solution allows merchants to leverage the expertise of payment professionals so they can grow their revenue without compromising on security.
| Also, you can get frequent updates on nttdatapayments Instagram page. |
Frequently Asked Questions (FAQs)
1. What is a hosted payment gateway?
A hosted payment gateway is a payment processing solution where the gateway provider hosts all payment functionality on their secure servers rather than requiring merchants to manage payment processing technology themselves.
2. What are the benefits of a hosted payment gateway?
The main benefits are that merchants don’t have to worry about PCI compliance, payment details are securely handled by the provider, and it allows merchants to focus on their business rather than managing payments.
3. How does a hosted payment gateway work?
The hosted payment gateway provider acts as an intermediary. It takes card details directly from customers, communicates approval/decline to merchants, and handles all settlements without sensitive data touching the merchant’s servers.
4. Is my business required to be PCI-compliant with a hosted gateway?
No, because with a hosted gateway, the provider is responsible for securely handling and transmitting payment data according to PCI standards. This removes the need for merchants to be PCI-compliant.
5. How do I integrate a hosted payment gateway?
Integration is usually simple, requiring only a short code or JavaScript snippet to add to your checkout page. Providers offer detailed integration guides and support.
