Licensed Payment Gateway Solution VS Hosted Payment Gateway Solution
In order to process payments merchants and payment service providers (PSP) need to use credit card processing software of some sort. There are two options available they can either use a licensed payment gateway solution or a hosted one.
Usually a licensed payment gateway solution is chosen by businesses with high processing volumes, because they will get complete control of the gateway infrastructure. One more significant advantage is the reduction of processing costs while no per-transaction fees are applied. What is more, if you need some specific functionality it can be developed for you.
On the other hand this solution is not suitable for small and mid-size businesses while licensing costs are relatively high and PCI-compliant environment is required for software installation. Consequently, they choose the seconds option — hosted payment gateway solutions because no licensing fees are associated with this payment processing software and no PCI compliant environment is needed. But small and mid-size business owners have to remember that they will have to pay per-transaction fees and it is most likely that they will obtain only some standard functionality.
Are you interested in the examples? Have a look at UniPay Payment Management Platform in order to understand better the difference between licensed and hosted payment gateway solutions. Visit the website for the details.