In Merchant Hosted Checkout, the merchant needs to collect the customer card details on their own website and post them to PayU.
Here, the customer would not be stopped at the PayU payment page at all, as the payment option and card details are already received from the merchant. The merchant must be PCI-DSS certified in this case.
Key features of Merchant hosted checkout:
1. It collects the customer payment credentials directly through a customized payments interface hosted as part of the merchant’s business website.
2. It allows a fast and coherent payment process.
3. The e-commerce website can be built around a readily available shopping cart kernel or custom-built from scratch, as per business requirements.
4. It allows the merchants complete freedom to build their own payment experience and add elements as per their requirements to ensure continuity.
5. It grants the merchants total control over their customer’s payment data and improves brand appeal.
The concept can be understood with the following process diagram:
Prerequisites to Avail Merchant Hosted Checkout
- The merchant must have Payment Card Industry Data Security Standard (PCI-DSS) certification, which is mandatory for all entities seeking to store, process, and transmit cardholder data.
- Considerable understanding of the workflows, various payment processes, website designing fundamentals, and UX management principles necessary to build the complete online payments infrastructure on the client-side.
- Enough technical bandwidth dedicated to managing the end-to-end web checkout processes in-house consistently.
Merchant Hosted Checkout Flow
- It operates through a form post-call directly from the browser of the user, sending their payment data into the PayU’s systems.
- In this, a payment process initiated from a merchant’s e-commerce website travels through the PayU’s secured environment before reaching the card ACS or net banking page of a bank.
- Once the transaction is completed in the bank’s website environment, the user is redirected to the website of the merchant.
User Experience of Merchant Hosted flow
Step 1: The customer completes shopping at the merchant’s website and initiates a transaction with a saved VISA card credentials.
Step 2: The customer enters the CVV and proceeds to complete the payment.
Step 3: Once the credentials are entered and the payment flow is launched the user is navigated through a secured PayU environment that reflects the transaction ID.
Step 4: The flow takes the user to the login ACS page of the bank where the user needs to complete the transaction by using the OTP sent by the bank to the registered mobile number.
Step 5: Customer is shown the status (failed/successful) on merchant’s website based on the transaction status from PayU.