A hosted payment gateway directs customers away from your checkout page where they’ll be transferred to a third-party website or portal (such as PayPal) to enter their payment details. Once this has been completed, customers are redirected to your website to complete the sale. Hosted payment gateways are easy to set up and can be a good option for new businesses. There’s no need to integrate or maintain the payment gateway and security and fraud protection is high. However, you’ll generally pay more for this type of payment gateway.