Hosted Payments vs. Integrated Payments: What Should Businesses Consider?
Hosted and integrated payments describe different ways to connect payment acceptance with a business’s website, application, or internal systems. A hosted approach generally uses a payment page or payment fields served by the provider. An integrated approach connects payment acceptance more closely with systems such as an ERP, CRM, billing platform, or customer portal. The distinction is not always a simple redirect-versus-embedded choice: an integrated workflow may still use provider-hosted payment fields.
The right option depends on the business’s payment channels, customer experience requirements, workflow complexity, technical resources, reporting needs, and the systems that need to work together. Hosted tools may reduce implementation work for standard online or invoice-payment workflows. Deeper integration may be useful when payment activity needs to connect with ordering, billing, account management, or other processes.
PCI DSS responsibilities depend on the specific architecture and how payment-page elements and card data are handled. A provider-hosted page or qualifying embedded form may reduce direct handling of sensitive payment data, but hosted and integrated are not fixed PCI categories. Merchants should confirm the appropriate validation method for their environment.
Factors to consider:
- A hosted approach may suit a business that wants a straightforward way to accept online or invoice payments with less custom development.
- An integrated workflow may be worth considering when payment acceptance needs to connect with ERP, CRM, order-management, subscription, or customer-account systems.
- Available technical resources, payment channels, reporting needs, security responsibilities, and the desired customer experience can all affect the decision.
- Some businesses use a combination of hosted and integrated payment workflows for different channels or transaction types.
- The best fit depends on the provider, agreement, architecture, and implementation scope.
What Are Hosted Payments?
Hosted payments typically use a payment page operated by the payment provider. Depending on the setup, the customer may be redirected to that page or may enter payment details in provider-served fields embedded in the merchant’s site. The specific implementation determines how the payment flow works and how card data is handled.
For example, a distributor could send a customer a secure payment link with an invoice. The customer opens the provider-hosted page, reviews the amount, and chooses from the payment methods available for that account. Another business might offer invoice payment through a customer portal using provider-hosted fields. These are hypothetical examples; available features depend on the selected provider and configuration.
Potential advantages:
- Potentially narrower PCI scope. When payment-page elements and card data are handled in a way that meets applicable eligibility criteria, a provider-hosted approach may reduce the merchant’s direct card-data handling. The merchant still has responsibilities under PCI DSS.
- A simpler implementation path. Hosted pages and payment links may be available through a provider’s tools or supported platform integrations. Setup time varies with the provider, business systems, configuration, and testing required.
- Provider tools may include fraud screening, authentication options, and dispute-management features. The features available and each party’s responsibilities depend on the provider, agreement, payment method, and configuration.
- Some providers support multiple payment methods through hosted pages or payment links. Confirm which options are available for the business, payment channel, and customer location.
Possible tradeoffs: a redirect can move the customer away from the merchant’s page, while an embedded provider-hosted form may keep the customer on that page. Branding, layout, and testing options depend on the provider’s tools. The merchant should also understand how provider outages, support processes, and payment-status updates affect its own workflow.
What Are Integrated Payments?
Integrated payments connect payment acceptance more directly with a business’s website, application, ERP, CRM, billing platform, or other systems. Depending on the architecture, customer-facing payment fields may still be hosted by the payment provider while the surrounding payment workflow is integrated with the business’s systems. Other implementations may handle payment data more directly and carry a broader PCI scope.
An integrated workflow can connect payment status with order, invoice, or customer records where the provider and business systems support that connection and it is configured appropriately. The customer experience may remain within the business’s website or application, but that depends on the design and payment flow.
Potential advantages:
- More checkout-design options. An integrated implementation may allow the business to coordinate payment steps with its website or application. The degree of control over branding, fields, and messages depends on the provider’s tools and the architecture.
- Checkout testing. Businesses may be able to test different supported payment flows or page designs. Any effect on conversion varies by business, implementation, customer behavior, and payment experience.
- Connections with business systems. Where supported and configured, payment data can connect with order management, CRM, ERP, or subscription systems. The integration may reduce duplicate entry or reconciliation work, but it does not automatically eliminate those tasks.
- Support for specific workflows. An integration may support recurring billing, account-based payments, marketplace payouts, or other workflows, depending on the provider, system capabilities, and agreement.
Trade Offs: integrated payments can require more technical planning, implementation, testing, and ongoing maintenance. The level of effort varies with the systems involved and the scope of the connection. PCI DSS responsibilities also vary by architecture and by how payment-page elements and account data are handled.
Hosted vs. Integrated Payments: How They Compare
The table below summarizes common considerations. Actual capabilities, pricing, implementation effort, and PCI DSS responsibilities depend on the provider, agreement, architecture, and configuration.
Primary decision factors overview table
| Decision Factor | Hosted Payments | Integrated Payments |
| Best fit | May suit standard online, portal, or invoice-payment workflows | May suit workflows needing deeper connectivity with business systems |
| Implementation | Often simpler to deploy using provider-hosted tools; timing varies by platform and configuration | Typically requires more technical implementation; timing varies significantly by integration scope and systems involved |
| Payment page and fields | May use a provider-hosted redirect page or embedded fields | May connect payment workflows to business systems; customer-facing fields may still be hosted by the provider |
| PCI DSS scope | Potentially narrower when applicable eligibility criteria are met | Varies by architecture and how payment data is handled |
| Customer experience and design | Options depend on provider tools; a redirect or embedded form may be used | Can provide more ways to coordinate checkout with a website, application, or business workflow |
| Pricing | Depends on provider, payment method, agreement, and transaction | Depends on provider, payment method, agreement, and transaction; include integration and maintenance costs |
| Examples of workflows | Hosted pages, payment links, portal or invoice payments where supported | ERP, CRM, order-management, subscription, or account-based payment connections where supported |
Neither approach is the universal winner. Hosted tools may offer a simpler path for standard payment workflows, while deeper system connectivity may be useful when payments need to fit into broader business processes.
Factor 1: Implementation and Technical Effort
The work required to launch depends on the provider, the business’s existing systems, and the payment workflow. A business adding a payment link to invoice emails may have different needs from one connecting payment acceptance to order management and account records.
Hosted pages and payment links may be simpler to deploy when a provider offers tools that fit the business’s current process. The setup may still involve configuration, branding, user testing, and coordination with accounting or customer-service workflows. Timing varies by platform and requirements.
Integrated payment projects often involve additional technical planning. The team may need to map data flows, connect systems, configure payment methods, test error handling, and confirm how records will be updated. The work and timeline vary significantly with integration scope and the systems involved.
Neither approach is automatically faster in every situation. Hosted tools may reduce implementation work for standard workflows. An integrated environment may justify additional effort when system connectivity or workflow automation creates meaningful operational value.
Factor 2: Customer Experience and Checkout Design
The payment step is part of the customer experience, but its effect on completion rates depends on the business and the design. A clear, familiar payment flow can help customers understand what to do next. Unnecessary steps, confusing messages, or limited payment options may create friction.
A hosted flow may redirect a customer to a provider page, or it may use provider-served fields embedded in the merchant’s page. The transition, branding, loading time, and available payment options can affect how the experience feels. Businesses should review the actual checkout flow rather than assume every hosted setup works the same way.
An integrated payment experience can provide more options for coordinating checkout with the business’s website or application. Depending on the architecture, the customer may remain in the same interface and the payment status may connect with other workflows. The effect on conversion varies by business, implementation, customer behavior, and payment experience.
Customer experience comparison table
| UX Element | Hosted Payments | Integrated Payments |
| Customer remains on merchant page | May redirect the customer or use provider-hosted fields embedded on the merchant page | May be designed within a website or application; architecture varies |
| Mobile experience | Depends on provider’s page, fields, and supported payment methods | Depends on the application, integration, and provider tools |
| Branding and layout | Customization depends on provider options | May offer additional design options, depending on implementation |
| Localization | Language, currency, and payment options depend on provider support | May connect local settings with business workflows where supported |
| Wallets and payment methods | Availability depends on the provider and agreement | Availability and placement depend on the provider and integration |
| Checkout testing | Testing options depend on provider tools | Businesses may be able to test supported designs or flows; results vary |
| Saved payment details | Availability and portability depend on provider and token type | Use and migration of tokens depend on provider, architecture, agreement, and token type |
Integrated payments can provide greater control over checkout design and testing. The effect on conversion varies by business, implementation, customer behavior, and payment experience.
Factor 3: Security, Compliance, and Risk
PCI DSS validation requirements depend on how payment-page elements originate, where account data is captured or transmitted, and the merchant’s overall payment environment.
A redirect or qualifying embedded provider-hosted payment form may be eligible for SAQ A when all applicable eligibility criteria are met. Other implementations may require SAQ A-EP, SAQ D, or another validation approach. Merchants should confirm the appropriate validation method with their acquirer, payment brand, or a qualified PCI resource.
Integrated workflows do not always mean that the merchant directly handles card data. Some architectures use provider-hosted fields while connecting the surrounding payment workflow to business systems. Other implementations may involve more direct handling of payment-page elements or account data. The details determine the merchant’s responsibilities.
The provider maintains its own PCI validation, while the merchant remains responsible for requirements that apply to its environment. Those responsibilities can include securing the website, managing access, monitoring payment-page changes, and following applicable testing or scanning requirements. 3D Secure may provide liability-shift benefits for eligible transactions depending on card-network rules and transaction circumstances.
Security and compliance responsibility table
| Responsibility | Hosted Payments | Integrated Payments |
| PCI validation | Depends on implementation and eligibility criteria | Varies by architecture and how payment data is handled |
| Where payment data is handled | May be captured through provider-hosted page elements | May use provider-hosted fields or other architectures; details determine data flow |
| Fraud and authentication tools | Provider may offer tools; responsibilities depend on agreement and setup | Provider may offer tools; availability and integration responsibilities vary |
| Merchant responsibilities | The provider maintains its own PCI validation; the merchant remains responsible for requirements applicable to its environment | The provider maintains its own PCI validation; the merchant remains responsible for requirements applicable to its environment |
| Validation/Testing Requirements | Depend on the merchant’s applicable PCI DSS requirements, validation method, and payment environment. | Depend on the merchant’s applicable PCI DSS requirements, validation method, architecture, and payment environment. |
Hosted approaches can reduce direct card-data handling and may narrow PCI scope when applicable criteria are met, but they do not eliminate the merchant’s PCI DSS responsibilities. Integrated environments can also be designed to reduce direct handling of card data, depending on the provider and architecture.
Factor 4: Flexibility, Features, and Scalability
A business collecting invoice payments may need a different setup from a manufacturer connecting customer orders, ERP records, and payment activity. The right choice depends on the workflow and systems that need to work together, not on a universal transaction threshold.
Hosted payment pages and links may support common payment methods and standard collection workflows. The provider determines which design options, fields, and payment methods are available. Businesses should confirm that the tools support their invoicing process, customer portal, reporting, and payment channels.
An integrated environment may connect payment acceptance with billing, account management, order processing, or subscription workflows. What it can do depends on the provider’s capabilities, the business systems involved, and how the integration is configured.
For software platforms and B2B companies, embedded payment workflows may connect payment acceptance to onboarding, account management, or invoicing. Reporting and reconciliation capabilities depend on the data available and how systems are connected; integration does not guarantee a complete or automatic view.
Payment options and checkout behavior can vary by market, payment method, provider, and customer group. Some hosted tools support local payment methods and regional settings, while integrated workflows may offer other ways to coordinate payment options with a business’s systems. Confirm the supported options for the intended use case.
Hosted and integrated approaches can each support different business needs. Consider the workflows, systems, payment channels, reporting requirements, technical resources, and customer experience before selecting a model.
Factor 5: Total Cost of Ownership
Total cost of ownership should include transaction pricing, gateway or platform fees, implementation work, ongoing maintenance, security and compliance requirements, internal technical resources, reporting and reconciliation effort, and any operational or customer-experience benefits. Hosted and integrated solutions may use similar or different transaction pricing depending on the provider and agreement, so businesses should compare their actual total cost rather than rely on a universal revenue or transaction-volume breakpoint.
Hosted payment tools may require less custom development when the provider’s standard tools fit the business’s workflow. However, setup, platform fees, support, reporting, and internal staff time should still be included in the comparison.
An integrated payment environment may involve planning, technical implementation, testing, maintenance, and coordination across business systems. The cost depends on the scope, provider, internal resources, and ongoing support needs. Potential operational benefits should be evaluated against those costs using the business’s own requirements.
A useful comparison accounts for both direct fees and staff effort. Include the time spent managing exceptions, reconciling payments, supporting customers, and maintaining integrations. Then compare the options using actual provider proposals and realistic estimates for the work involved.
Winner: It depends. Hosted solutions may have a lower implementation burden, while integrated environments may justify additional investment when deeper system connectivity or workflow automation creates meaningful operational value.
Examples: When Hosted or Integrated Payments May Fit
The following hypothetical B2B scenarios illustrate factors a business might consider. They are examples, not customer case studies or performance claims.
Hosted payment examples:
- A distributor wants to collect invoice payments without building a custom checkout. It sends customers a secure hosted payment link or offers a provider-hosted payment page through its portal, using payment methods supported by its provider and agreement.
- A field-service company sends an invoice after completing a job. A hosted payment link gives the customer an online way to pay, while the business evaluates how payment status will be reflected in its accounting and service records.
- A professional services firm uses hosted payment pages for occasional deposits or invoice balances. The approach may reduce the need for custom checkout development, provided the available payment options and reporting meet the firm’s needs.
Integrated payment examples:
- A manufacturer wants payment acceptance connected with its ERP and invoicing workflows. An integration may help associate payment status with order and account records, depending on the systems and configuration.
- A distributor operates e-commerce and account-based ordering. It evaluates whether connecting its online storefront, ERP, and payment channels could support its order and reconciliation processes.
- A B2B software provider is considering recurring or account-based payments within its platform. An integrated workflow may be appropriate if the provider, platform, and business requirements support the needed connection and reporting.
Hosted Payments vs. Integrated Payments: Which Should You Choose?
There is no universal winner. Consider workflow complexity, existing systems, technical resources, customer experience, reporting needs, payment channels, security responsibilities, and implementation scope. Compare the specific provider options available to your business.
A hosted approach may be worth evaluating if:
- You want a straightforward way to accept online or invoice payments with limited custom development.
- Your standard payment workflow can be handled by the provider’s hosted tools or supported integrations.
- You want to reduce direct handling of payment data, while recognizing that PCI DSS responsibilities still depend on your implementation.
- You need payment acceptance for a customer portal, invoice, or online workflow and the provider’s available features fit your requirements.
- You prefer to assess a simpler payment workflow before investing in deeper system connectivity.
An integrated approach may be worth evaluating if:
- Payment acceptance needs to connect with ERP, CRM, order-management, billing, or customer-account systems.
- Your business has workflows that may benefit from payment-status data connecting with other records, where supported and configured.
- Your billing model involves recurring, account-based, installment, or marketplace workflows that the provider and systems can support.
- You need payment activity to work across multiple channels, locations, or customer processes.
- Your software platform or application requires payment acceptance to fit within its broader user workflow.
- You have technical resources available to evaluate, implement, test, and maintain the integration.
Some businesses use both hosted and integrated payment workflows for different channels. The appropriate mix depends on the payment environment, provider capabilities, customer experience, and business systems involved. Token portability and migration requirements vary by provider, architecture, agreement, and token type, so they should be confirmed before planning a change.
How PayTech Trust Helps Businesses Evaluate Hosted and Integrated Payments
PayTech Trust helps businesses evaluate hosted payment pages, online payment workflows, gateway configurations, payment-system integrations, tokenization, reporting, and connectivity with existing business systems. The right approach depends on an organization’s payment channels, systems, customer experience requirements, security needs, and implementation scope. Available capabilities vary by processor, gateway, business systems, and selected solution.
Businesses evaluating online payment acceptance can explore PayTech Trust’s Online & Hosted Payments and Enterprise Payment Environments & Integrations or contact PayTech Trust to review their current payment environment.
Frequently Asked Questions About Hosted and Integrated Payments
These answers address common questions businesses consider when comparing hosted and integrated payment approaches.
Can I Start With Hosted Payments and Later Switch to Integrated Payments?
Yes, that is one possible migration path. A business may begin with a hosted page or payment link and later evaluate a deeper integration as its workflows change. The work can involve configuring the new flow, testing it, updating reporting, and coordinating with internal systems. Token portability and migration requirements vary by provider, architecture, agreement, and token type. Confirm these details with the provider before making a migration plan.
Which Option Is Better for Mobile Apps and In-App Payments?
It depends on the application and payment workflow. An integrated experience may connect payment acceptance more closely with an app, while a provider-hosted page or fields may also be available for mobile use. Review the user experience, supported payment methods, provider tools, and any platform rules that apply to your business.
How Do Hosted and Integrated Payments Affect PCI DSS Compliance?
PCI DSS validation depends on how payment-page elements originate, where account data is captured or transmitted, and the merchant’s overall environment. A redirect or qualifying embedded provider-hosted payment form may be eligible for SAQ A when all applicable criteria are met. Other implementations may require SAQ A-EP, SAQ D, or another validation approach. Confirm the appropriate method with your acquirer, payment brand, or qualified PCI resource. Hosted payments do not remove all merchant responsibilities.
Are Transaction Fees Different for Hosted and Integrated Payments?
They may be the same or different. Pricing depends on the provider, payment method, agreement, and transaction. Compare the complete cost, including platform or gateway fees, implementation, maintenance, and internal work, rather than assuming one model has a standard rate.
Can I Use Hosted and Integrated Payments on the Same Site?
Some businesses use a combination of approaches. For example, a company may use a hosted payment link for invoice collection and an integrated workflow for account-based payments that connect with its business systems. Reporting and reconciliation requirements should be considered when planning a mixed environment.
