Self-Hosted Crypto Payment Gateway is the best solution for your online store?

Payment gateway is a tool that helps online transactions go smoothly. So how many types of payment gateways do you know and whether a Self-Hosted Crypto Payment Gateway is the best solution for your online store? The following article summarizes and reviews some information about the types of payment gateways.

What is a Payment Gateway?

Payment gateways act as a bridge between buyers, sellers and financial institutions or banks. Payment gateways will help connect your online store with payment processors and facilitate the payment process smoothly. With the trend of continuous improvement and development, Cryptocurrency Payment Gateways were born with the motto of optimizing the function of a payment gateway and allowing users to spend cryptocurrencies.

There will be a total of 4 types of payment gateways, one of which is the self-hosted crypto payment gateway with the advantage of allowing you to manage and control your payment process without going through any intermediary channels. However, for other cryptocurrency payment gateways, there are also advantages and disadvantages of each type of product. Therefore, when you set up a payment system for your online store, you will have certain options. Depending largely on the needs, potential of your business, and the target customers and market you are targeting, you will choose a suitable payment gateway.

Types of Cryptocurrency Payment Gateways

Now let’s go through some of the features of each and check if a self-hosted crypto payment gateway is what you are looking for? Let’s check out pros and cons of each type of crypto payment gateway to have an overview firstly as below:

Type	Pros	Cons
Hosted Crypto Payment Gateway	All transactions comply with PCI.Simple to use, install, and modify.	The merchant is unable to keep an eye on the complete customer journey due to external payment gateway variables.
Self-Hosted Crypto Payment Gateway	Customer service is usually very good because the transaction is handled in one place.It is possible to track the complete consumer journey.	Technical help is rarely available for self-hosted systems. If there is an issue, you have to resolve it on your own.
API-Hosted Crypto Payment Gateway	Fully customizable and fully supervised.effortlessly connects to a variety of devices.	The merchant must obtain SSL certification and adhere to PCI DSS rigorously.
Local Bank Integration	Perfect for solitary traders, it’s quick and easy.	a fairly simple feature set.High fees and charge.

Type: Self Hosted Crypto Payment Gateway

By collecting payment information directly on their website or app, without sending users to third-party platforms, a self-hosted crypto payment gateway provides businesses total control over their payment process. This configuration guarantees a completely personalized checkout process that blends in perfectly with the user interface of the brand.

When using this solution, merchants – by themselves – manage security features like fraud detection and encryption. Moreover, they ensure compliance with laws like PCI DSS. Businesses must invest in the required infrastructure and knowledge to operate a safe and effective payment system, even though this strategy gives them more flexibility and control.

When to Use a Self Hosted Crypto Payment Gateway?

A self-hosted crypto payment gateway gives businesses complete control over payments, branding, and compliance if they handle large transaction volumes and place a high priority on security. It reduces the danger of data exposure while maintaining regulatory compliance, making it the go-to option for companies looking for a quick and safe checkout process. It is best suited for corporations with the technical know-how to handle infrastructure.

How Self Hosted Crypto Payment Gateway Works?

A self-hosted payment gateway makes transactions directly on the website of merchants. By giving the full control to merchants from beginning steps to checkout experience. See how does it work as below:

1. Customer Payment – After the customer selects and clicks the check out button to buy a product or service.
2. Payment Details Entered – Allow the customers fill in full payment information. For self-hosted crypto payment gateway, the customers enjoys to choose the type of crypto to pay, 
3. Merchant’s Server Processes Data – The payment details are transmitted from the website or app to the merchant’s server.
4. Transaction Sent for Authorization – The merchant’s server securely forwards the payment data to the payment processor for validation and authorization.
5. Payment Confirmation – The payment processor communicates the approval or rejection of the transaction, and the website displays the final payment status to the customer.

Key Components of Self Hosted Crypto Payment Gateway

The essential elements of a self-hosted payment gateway guarantee safe and easy transactions. While the payment gateway infrastructure processes and sends data to the payment processor, which confirms and finalizes the transaction with the customer’s bank, the merchant’s website or app gathers payment information. Businesses use encryption technologies like SSL/TLS and adhere to PCI DSS regulations to guarantee security. With this configuration, companies have complete control over the payment process while preserving operational effectiveness and data security.

Pros and Cons of Self-Hosted Crypto Payment Gateway

Pros

• Complete Control Over Payment Experience: Companies have complete control over the checkout process, guaranteeing a smooth and branded customer experience free from outside intervention.
• Improved Customer Trust & Retention: Businesses in Singapore benefit from retaining transactions on the platform since it fosters trust and lowers customer attrition from redirections.
• Savings on Transaction expenses: Businesses can reduce processing expenses over time by doing away with third-party middlemen.
• Flexibility and Scalability: Without requiring significant adjustments to their payment infrastructure, self-hosted gateways enable companies to grow their operations.
• Data Ownership & Insights: With the right security, businesses may directly handle consumer data and obtain insightful information for improvement.

Cons

• High Security & Compliance Responsibility: In order to protect sensitive data, businesses must establish strict security measures and guarantee compliance with PCI DSS.
• Technical Complexity: Integration is difficult for companies without a specialized tech staff since it calls for knowledge of secure payment processing.
• Continuous Maintenance & Updates: To remain in compliance with changing security standards, businesses need to update their systems on a regular basis.
• Higher Setup & Infrastructure Costs: When compared to third-party solutions, the initial outlay for servers, security, and compliance can be costly.
• Troubleshooting & Risk Management: Any security breaches or payment failures must be addressed internally, necessitating the deployment of specialized staff for issue resolution and monitoring.

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