What is a self-hosted payment gateway and how does it work?

A selfhosted payment gateway, also known as an onsite payment gateway, is a type of integration where the payment processing is conducted on your own website or platform. In this setup, you host the payment pages and handle the entire payment process, including data transmission, security, and compliance.

Here's how a selfhosted payment gateway typically works:

1. Integration: You integrate the payment gateway software or code directly into your website or application. This allows you to have full control over the payment flow and design.

2. Payment Form: You create a payment form or checkout page on your website where customers can enter their payment details, such as credit card information or other payment credentials.

3. Data Transmission: When a customer submits the payment form, the payment data is transmitted securely from your website to the payment gateway for processing.

4. Payment Processing: The payment gateway securely processes the payment transaction, communicating with the appropriate financial institutions, card networks, and banks involved in the payment process.

5. Confirmation: Once the payment is authorized or declined, the payment gateway sends a response back to your website, indicating the status of the transaction.

6. Response Handling: Your website can then handle the response from the payment gateway accordingly, updating the customer with a success or failure message and completing any necessary order or transaction processing.

Key points to consider for selfhosted payment gateways:

Customization: With selfhosted payment gateways, you have greater flexibility to customize the payment experience, including the design, branding, and user interface of your payment pages. This allows you to create a seamless and consistent user experience on your website.

Control: Since the payment process is handled on your own platform, you have direct control over the entire transaction flow and can incorporate additional features or functionalities specific to your business requirements.

Security: As a selfhosted payment gateway, you are responsible for ensuring the security of customer payment data. This includes implementing strong security measures, such as data encryption, tokenization, and adherence to PCI DSS (Payment Card Industry Data Security Standard) compliance.

Maintenance: With selfhosted payment gateways, you are responsible for maintaining the payment infrastructure, including security updates, bug fixes, and compliance with industry standards. This requires ongoing monitoring and management to ensure a secure and reliable payment process.

It's important to note that selfhosted payment gateways require more technical expertise and resources compared to other integration methods. You may need to work closely with a developer or technical team to implement and maintain the payment gateway effectively.