What is Hosted Checkout

Cloud-based shopping cart_CardinalCommerceWhen setting up your online business, you’ll need to arrange for a ‘checkout’ button that shoppers will click when they want to buy from you. This adds another layer of security, and is usually very quick to set up. The key is making it as easy as possible for customers to buy from your site. Merchant benefits of hosted checkout include an easy set-up for merchants, a seamless checkout experience, and elimination of many PCI compliance issues, because merchants never store their customers’ payment information on their site.

Providers of hosted checkout handle the section of the online shopping experience where the shopper enters their billing and shipping information, and their payment information. Most providers offer templates that the merchant can use and customize to match the look of their website, and integrate with many gateways and processors.

One of the biggest benefits of using a hosted checkout solution is the fact that all payment information is stored with the checkout solution – and not on the merchant’s website. This eliminates many of the PCI compliance requirements (PCI DSS – Payment Card Industry Data Security Standard). The PCI DSS standard was created to increase controls around cardholder data to reduce credit card fraud and requires an annual validation assessment. If a merchant experiences a breach and is not PCI DSS compliant at the time, they are subject to additional card scheme penalties and fines.

Often, using a hosted checkout solution is a better way for new online merchants to create their eCommerce store.

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