Hosted Checkout

Hosted Checkout refers to the process whereby the payment page for an online transaction is hosted by a secure, third-party payment processor instead of the merchant.

When customers decide to make a purchase, they are redirected to this secure page to complete their payment details. This procedure ensures that sensitive cardholder data — such as credit card numbers and CVV codes — are never exposed to the merchant’s website or server.

By doing this, the hosted checkout process significantly minimizes the merchant’s compliance responsibilities under the Payment Card Industry Data Security Standard (PCI DSS). This not only reduces the merchant’s potential risk of data breaches but also streamlines their operations by allowing them to focus more on their core business activities.

The security measures employed by third-party payment processors during hosted checkout usually provide customers with reassurances about the safety of their personal data, thereby enhancing customer trust and the overall shopping experience.