EMV credit cards help make retail shopping more secure. Each card comes with an embedded chip that assigns a unique transaction ID to every purchase. Customers must also either sign their name or enter a personal identification number (PIN) in order to successfully authorize each transaction.
However, these extra security features aren't really applicable when shopping online. With most e-purchases, anonymous customers simply provide their:
Hosted payment forms allow you to process online transactions without capturing or storing users’ financial data on your own servers.
When customers check out during the sales process, they temporarily leave your site and complete payment on a third-party platform before returning to your e-commerce store. As an online merchant, these hosted payment pages allow you to outsource data security and limit your liability.
But how do you actually set up hosted pages and redirect customers to these off-site payment forms?
Hosted payment forms are pages "hosted" on external, third-party sites to process electronic transactions (i.e. payments made with credit or debit cards). In order to successfully complete each transaction, online shoppers temporarily leave your site, key in their credit card information, and then return to your e-commerce store.
But why make customers go through this extra step? Don't hosted payment forms break the continuity of the shopping experience?
In a way, yes. After all, you're redirecting traffic away from your online property before bringing the customer back.
When you watch American credit card commercials, "universal coverage" is a common theme. Visa, MasterCard, Discover and American Express have your back under any and all circumstances. Visa even has a catchy tagline — "Everywhere you want to be."
It's clever marketing. But the reality is very different. The majority of tourist destinations around the world no longer accept traditional swipe-and-sign credit cards (i.e. the ones with magnetic strips on the back).