If you are reading this, you are likely a digital entrepreneur, event organizer, or someone with a product or service to sell online who recognizes that a simple and secure online sales process is pivotal to success in the digital marketplace.
Even if you are new to selling online, you won't be a stranger to infuriating payment processes when buying online. If you are anything like me, you've probably given up on a few rather than endure the frustration.
Hosted payment pages provide an effective solution for managing online transactions that are stress-free for you and your customers.
In this article, we explore the world of hosted payment pages: What they are, how they work, who they work well for, their benefits and drawbacks—and how Checkout Page could be your perfect payment page partner.
What is a hosted payment page?
A hosted payment page is a secure web page provided by a third-party service provider that helps individuals and businesses accept online payments for products and services.
Instead of handling payment information, they send customers to a secure hosted payment page to complete their purchases.
These pages—also known as "checkout pages," "external payment pages," "hosted payment gateways," "third-party checkouts," and "external checkouts"—make it easy for customers to pay using various different methods.
One of the many benefits of a hosted payment page is that you can accept payments for your products and services without being responsible for handling sensitive payment data.
Another benefit is that these pages are designed with minimal effort for your customers in mind, reducing the risk of them deciding not to bother!
What payment methods does a hosted payment page accept?
Hosted payment pages typically accept a variety of payment methods, which can include:
- Credit cards
- Debit cards
- Digital wallets (like Apple Pay and Google Pay)
- Buy now, pay later services (Affirm, Klarna)
- Bank debit (like ACH and Bacs)
- Transfers (like Blink, EPS, Giropay)
- Pay by invoice and 'cash on delivery' options
By using a hosted payment page, businesses don’t have to worry about keeping payment information safe and secure—the third-party provider takes care of that for them.
How does a hosted payment page work?
A hosted payment page manages the entire payment process for online transactions, ensuring that it is straightforward and secure.
Here’s a look at how they work:
- Initiation by customer: Customers who are ready to make a purchase on a business's website click on the call to action (CTA), such as a "Buy it now" or "Start a free trial" button.
- Redirection: The customer is then sent to a third-party payment page. If the checkout page is embedded on the merchant's site, the customer will continue the process without leaving the site.
- Customer information input: On this secure page, customers enter their payment details, including the card number, expiry date and CVV. This data does not pass through the business's website—instead, the payment provider manages it.
- Data processing: After the customer submits their information, the hosted payment page encrypts it to secure the transaction. The payment processor then gets the details and forwards them to the card issuer for authorization.
- Authorization confirmation: The payment processor gets a near-instant result on the transaction. It is either approved or declined.
- Completion: If the system authorizes the card, the customer will see a notification that they successfully made their payment. They will then be redirected back to the business's website.
- Receipts and notifications: Customers receive a confirmation code or order number after completing the transaction. If the seller has set up an email confirmation, it is sent out.
This simple, secure process is a big reason the popularity of hosted payment pages in e-commerce.
Benefits of using a hosted payment page
Using a hosted payment page provides many advantages for both sellers and customers. Some of the significant benefits include:
- Quick and easy setup: Merchants can set up a hosted payment page in minutes without requiring coding expertise. Most providers offer user-friendly tools that allow merchants to accept payments almost immediately.
- Security and trust: Hosted payment pages increase security by keeping sensitive payment information off the merchant's website. The entire transaction is processed by a third-party, PCI-compliant service provider such as Stripe, which reduces the risk of data breaches and fraud.
- Optimized checkout experience: Hosted checkout pages are designed to provide a smooth and intuitive checkout process with minimal friction for the customer. This is crucial for reducing cart abandonment and increasing conversions. Features like address autocomplete and mobile-responsive designs simplify the user experience, maximizing the chance of customers completing their purchases.
- Customization options: Hosted payment pages can be customized to match the merchant’s branding, creating a consistent look and feel for their customers. Additionally, sellers can modify the language and terminology used on the payment page, ensuring clarity for their customer base.
- Multiple payment methods and currencies: A hosted payment page supports various payment options, including credit and debit cards and digital wallets. This flexibility widens a business's audience reach by catering to diverse payment needs and preferences. Additionally, it can detect a user's location and offer transactions in local currencies.
- Seamless integration and maintenance: When integrating a hosted payment page, sellers benefit from a straightforward process that usually involves copying and pasting a few lines of code. This means there is no reliance on technical resources.
- Scalability and global reach: Many hosted payment page solutions are designed to support international transactions and are available in multiple languages and currencies. This capability enables businesses to expand into new markets without altering their payment processes.
- Expert design and support: Businesses that use a hosted payment solution benefit from expertly designed pages maintained by dedicated teams. This ensures that payment interfaces are both aesthetically pleasing and functionally reliable.
Platforms like Checkout Page offer chat-based support to help with technical issues or set-up questions.
Using a hosted payment page can significantly streamline the payment process, enhance security, and improve the overall customer experience.
Types of hosted payment page
Different formats of hosted payment page cater to different business needs and customer experiences. Standalone pages provide a dedicated, secure transaction environment, while embedded options seamlessly integrate into your website, offering a cohesive experience.
Hosted payment page or embedded payment page?
While a hosted payment page redirects customers to a separate, secure webpage to enter their payment information, an embedded payment page is integrated directly into the merchant's website, allowing customers to make a purchase without leaving the site.
While this can provide a more seamless checkout experience, it may also require additional security measures to protect customer data. Choosing between a hosted and an embedded payment page depends on the business's specific needs and priorities.
Checkout Page allows you to choose how you'd like to use your checkout—either as a hosted payment page, embedding it on a website, launching it as a pop-up, or generating a QR code.
Alternatives to a hosted payment page
While hosted checkout pages offer many benefits, there are also a few alternatives that businesses might consider.
Below we take an overview of these options, their benefits, and what you need to consider:
Self-hosted payment solutions
😀 Businesses can create payment processing systems by integrating them directly into their websites. This allows for complete control over branding and the customer experience.
🤔 However, it requires extensive technical knowledge, ongoing maintenance, and strict compliance with security regulations, increasing complexity and cost.
Integrated payment gateways
😀 Solutions like PayPal Pro and Authorize.Net allow businesses to integrate payment processing directly into their existing websites.
🤔 While this can provide a seamless experience, it often involves more complex development and may still place the responsibility for security on the merchant.
API-based payment processing
😀 Utilizing APIs from providers like Stripe offers a flexible solution for custom checkout experiences.
🤔 While powerful, this approach typically requires significant technical development and ongoing management.
In contrast to these alternatives, hosted checkout pages offer some key advantages:
✅ They simplify the payment process.
✅ They reduce the burden of managing sensitive data by outsourcing security to PCI-compliant providers.
✅ They offer straightforward implementation without the need for technical skills or resources.
By using a hosted checkout page, businesses can focus on their core operations and customer engagement rather than navigating the complexities of payment processing, making them the preferred choice for many online sellers.
What is PCI DSS compliance?
PCI compliance means following the Payment Card Industry Data Security Standard (PCI DSS), a guideline for protecting cardholder data during payment transactions. Businesses that handle credit card information must follow these standards, including accepting, processing, or storing it. They aim to protect customer data and prevent fraud.
Our payment platform Checkout Page utilizes Stripe, a leading secure processor that meets PCI DSS requirements, ensuring that your transactions are not only compliant but also safe for your customers.
When selecting a hosted payment page solution, it's crucial to choose one that employs a trustworthy and secure payment processor that meets the PCI DSS.
Who should use a hosted payment page?
A checkout page or hosted payment page is suitable for a wide range of businesses engaged in e-commerce or online transactions.
Here are some contexts in which using a hosted payment page is particularly advantageous:
- Digital product sellers: Digital products often require immediate access upon purchase. Hosted payment pages can facilitate seamless transactions that allow customers to instantly receive their products, memberships, and subscriptions after payment, enhancing satisfaction and reducing abandoned carts.
- Startups: New businesses looking to enter the market quickly can utilize hosted payment pages to streamline their payment process without heavy infrastructure or security management investments.
- Subscription-based businesses: Companies offering subscription services (such as SaaS, membership sites, or recurring billing) can utilize hosted payment pages for automated and secure payment processing.
- E-commerce businesses: Online retailers and marketplaces that sell products or services directly through their websites benefit significantly from hosted payment pages, as they provide a secure and efficient way to process customer payments.
- Nonprofit organizations: Nonprofits that rely on online donations can use hosted payment pages to facilitate secure contributions and maintain donor confidence.
- Retailers expanding to online sales: Brick-and-mortar stores transitioning to e-commerce can implement hosted payment pages to establish secure online payment capabilities without extensive upfront investments.
- Service-based businesses: Freelancers, consultants, and service providers that accept online bookings or payments for services can use hosted payment pages to manage transactions smoothly.
- Businesses with limited technical expertise: Companies that lack a dedicated tech team can benefit from the ease of integrating hosted payment solutions, which often require minimal coding or technical skills.
A hosted payment page or checkout solution can benefit any business looking to simplify payment processing, enhance security, and improve the user experience. This is especially true for those seeking a fast and efficient way to adapt to the growing demand for online transactions.
Are there any drawbacks to using hosted payment pages?
While hosted payment pages offer many benefits, there may be some drawbacks, such as:
- Limited customization: Hosted payment pages may offer less flexibility in branding and design relative to fully integrated solutions, which can provide a seamless user experience.
- Redirecting users: Moving customers away from your website to a third-party page for payment may disrupt their shopping experience if the transition is jarring and lead to abandoned carts.
- Dependency on third-party: Relying on an external service means trusting their uptime and security. Any downtime or issues on their end could affect your sales.
- Fees: Hosted payment solutions often come with transaction fees, which can add up, especially for high-volume businesses.
- Less control over user experience: Since the payment page is managed by a third-party provider, you may have limited control over the checkout flow and features.
- Compliance and security risks: Although hosted payment pages typically enhance security, you must ensure that the payment processor complies with regulations like PCI DSS.
Assessing these potential drawbacks against the benefits will help you determine if a hosted payment page is the right choice for your business.
In selecting the right hosted payment page platform, you can overcome many of these drawbacks.
Checkout Page as a hosted payment page provider
As our name suggests, Checkout Page specializes in no-code hosted checkout pages. We enable our customers to build standalone and embedded checkout pages in minutes, which allows them to sell digital products, subscriptions, courses, event tickets, and much more.
We use Stripe as a payment processor, so our users can sell almost any product with complete peace of mind for themselves and their customers.
We've helped an array of customers sell products, share courses and sell out events, like celebrity hair stylist Naeemah Lafond, who used Checkout Page to sell out her live workshop event in NYC.
We facilitate many payment methods and billing models like one-time payments, recurring subscription payments, split payments, and "pay what you want" options.
Our users have a range of sales boosting features like one-click upsells, order bumps, discount codes and the ability to craft sales at their fingertips. We also enable rich customization options and white-labeling so that your payment pages match your branding.
99% of our platform's features are available on all of our pricing plans, and significantly, we don’t charge any platform fees. You pay your fixed monthly subscription cost, and that’s it!
If you want to try out Checkout Page, sign up for our free 7-day trial —no credit card needed.
Creating hosted payment pages from scratch is simple, and we offer a library of free page templates catering to various industries and use cases to help inspire you to start selling in no time.
