The growth of ecommerce has transformed the way businesses operate. It has provided customers with greater convenience and access to a wider range of products and services. Payment gateways play a crucial role in ecommerce by facilitating secure and efficient online transactions. They offer customers multiple payment options, protect against fraud and provide essential transaction data for online merchants.
There are three main ways how online shops can integrate with payment gateways:
1. Hosted payment page (redirect)
2. iFrame (embedded check-out) and
3. Self-hosted payment page (server-to-server)
Choosing the right technical integration type with the payment getaway depends on various factors. These include the complexity of an online shop, technical expertise of personnel, resources available and payment methods merchants want to offer customers.
Benefits:
With this integration type the payment gateway provides a payment page the customers are redirected to during the checkout process. The payment page is hosted by the payment gateway however can be somewhat customised to match the look and feel of the merchant's website. It is relatively simple to implement and maintain and is a good option for smaller merchants who want to get up and running quickly.
Further benefits include reduced liability and risk for data security and compliance. This is because the payment page is hosted on the payment service provider's server.
Drawbacks:
Limited customisation of the payment page can impact the overall branding and user experience. Hosted payment pages are managed by the payment services provider and therefore the merchant has very little control over the payment process. It also creates a second step for customers, who may feel less secure being redirected to another website to pay. This can increase the risk of shopping cart abandonment.
Benefits:
An iFrame integration is similar to a hosted payment page integration however the payment form is embedded directly into the merchant's website. This integration provides a more seamless checkout experience as customers are not redirected to a separate payment page. The main advantages are that this integration relieves the merchants of the responsibility of collecting and storing cardholder data, and the customers will not need to leave the merchant’s website. This integration is suitable for small businesses with limited developer resources.
Drawbacks:
iFrame integration requires more technical expertise to set up and maintain. iFrames may not be compatible with all web browsers, which can lead to a poor user experience or technical issues. Although it allows for a certain level of customisation, it is a pre-built user interface that gives businesses less control over checkout page presentation. While iFrame integration is generally secure, there is a slight risk that malicious code could be injected into the iFrame and compromise the security of the payment process.
Benefits:
This type of technical integration allows merchants to process payments on their own server and connect to a payment gateway via server-to-server communication. A self-hosted payment page integration offers the highest level of control over the payment flow. It also offers maximum customisation options.
Drawbacks:
Self-hosted payment pages require significantly more technical expertise and resources to set up and maintain. The merchant is required to have technical expertise in web development and security. With greater control comes greater responsibility. They are responsible for building and maintaining their own payment form and server infrastructure. Merchants who choose this option should be prepared to invest in the necessary resources and expertise to maintain a secure and compliant payment environment.
There also additional options for payment links. All merchants regardless of their way of integration can generate payment links via their API. Payment links are a specific implementation of the hosted payment page integration. They allow merchants to create a unique payment link they can share with customers via email, text, or any other messaging platform.
When the customer clicks on the link, they are taken to a payment page hosted by the payment service provider. Here they can enter their payment details and complete the transaction. Payment links are easy to create, share and track, and they can be used for one-time or recurring payments. This payment method is secure as the payment information is processed by the payment service provider who is responsible for maintaining security measures.
Merchants should carefully consider their specific needs and preferences, as well as technical capabilities and resources when choosing a technical integration type for their online shop.
Hosted payment page is a simpler and more straightforward method for processing online payments.
Embedded payment page offers greater control and customisation over the payment experience.
Self-hosted payment page offers maximum control and customisation but requires higher level of responsibility for ensuring the security and compliance of payment data.
At FMPay we offer all types of technical integration and our customer service team can walk you through the decision making and implementation for the right type for you. Learn more about the different types here.
