Payment Gateways - Direct vs Hosted

SmithCart > Payment Gateways
There are 2 different types of integrations that almost all the payment gateway companies offer; Direct and Hosted, defined as follows:

Direct Gateways

A direct payment gateway integration is where the user stays on your web site throughout the entire Smith Cart checkout process and the user enters their credit on your web site.

Pros
  • Better more professional user experience since the user stays on your site the entire checkout process
  • Less Abandon Carts since the user remains on your site the entire checkout

Cons
  • Requires SSL certificate be installed on your site


Hosted Gateways

Hosted gateways also known as hosted payment pages (i.e. Paypal Standard and Authorize.Net SIM) are where the user is redirected to the payment gateway hosted payment page and the user enters their credit card information on the gateway hosted payment page. After the user processes their transaction on the gateway hosted payment page they are redirected back to your web site and Smith Cart displays a confirmation page indicating the transaction was approved or declined.

Pros
  • No SSL certificate required
  • You never handle any credit card info on your site. The payment gateways/merchant account processors are usually the only party in the credit card transaction that require PCI certification. However there are a couple merchant account processors that require the end merchant/ecommerce site to be PCI certified, however this is the exception and not the rule. So depending on if your merchant account provider requires you to complete PCI certification/audit, using a payment gateway hosted payment page would not require you to complete PCI certification/audit.

Cons
  • Less desirable user experience - Since the user is redirected off your web site to another site for payment
  • More abandon carts - Security protection in browsers or virus software may block or display popup messages when a user is redirected to a bank hosted payment page which may result in more abandon carts and less sales on your ecommerce site.
 
For more information on all the payment gateways supported in the Smith modules click here