Payment Gateway | Types | Commercials | Security | Documents | Benefits | How it Works | Integration Information

Payment Gateway | Types | Commercials | Security | Documents | Benefits | How it Works | Integration Information

Understanding & Comparing Payment Gateway written by: davecalpito0529 Thanks to the numerous tech advances today, from different parts of the world have no problem ordering products from India. With the help of payment gateways, buyers from different countries can place their orders and send payment as securely as if they were conducting the transaction in person. As online shops enjoy a wide range, the presence of payment gateways in websites helps businesses move forward and improve their service.

What is Payment Gateway?

Payment Gateways are usually third party services that automate payment through credit cards. They’re responsible for verifying, accepting, and rejecting credit card payments in behalf of the seller. This is exactly how domains like eBay manage to receive payments for their products.

Today, you will find that there are currently numerous payment gateways providing service for merchants located in India. With varying terms and services, understanding and comparing payment gateway options is usually advisable for web owners.

Benefits of Payment Gateway

So what exactly can a payment gateway do for you and your business? Following are some of the known pros of having a Payment Gateway in your domain:

Gateways make it possible for you to accept all major credit cards as payments, increasing the range of possible purchases.

These services often make the whole payment process easy – a definitely plus for buyers. Once they find that getting the product they want can be achieved in a few simple steps, the chance of repeat purchases becomes higher.

Good payment gateways are secure, keeping you and your clients safe from third parties. If you use a popular payment gateway, this can also add to your reputation and increase the confidence of shoppers in your shop.

As the merchant, payment gateways ensure that the credit card information you’re getting is 100% valid. This limits the chances of fraudulent purchases online.

They’re typically easy to use, not just on the buyer’s end but also on the seller’s end. This means that you can easily navigate and customize payment procession as needed.

How it Works

So how exactly will this work? Here’s how Payment Gateway facilitates payment:

  1. The customer clicks on the “Purchase” button or equivalent. He will be directed to an online form requiring him to fill up card and personal information.
  2. SSL encryption is used to seal the data provided by the buyer before it moves from the browser to the website of the servant.
  3. Upon receipt, the merchant then forwards it to the Payment Gateway system, this time adding another SSL encryption.
  4. Gateway sends the information to the seller’s acquiring bank.
  5. The bank then sends the said information to the card association such as Visa or MasterCard.
  6. A quick response is made by the card association verifying the account.

how-payment-gateway-works

Different Payment Gateways in India

Your India-based shop can benefit from numerous available Payment Gateways. Following are just some of the most popular gateways available today:

CCAvenue

Currently one of the most powerful platforms today, CCAvenue offers three types of membership: Economy, Premium, and Privilege.

Economy:

  • Free setup fee
  • Payment through credit card is 5.5% while debit card is 1.25%
  • EMI is 3.5% for 3 months and 5.5% for 6 months
  • Accommodates 25+ banks
  • Annual maintenance of 1,200

Premium:

  • Setup fee is 25000
  • Credit card fee is 3.5% while debit is 1.25%
  • Cash card is at 4%
  • Annual maintenance of 2,400

Privilege

  • Setup is 40,000
  • Credit card fee is 2.5% while debit card is 1.25%
  • Cash card is 3.6%
  • Annual maintenance is 3,600

RBS

RBS offers a total of 4 different membership plans:

Regular:

  • Setup fee is 12,000 with annual maintenance of 3,600
  • Credit, debit, EMI, Netbanking, and Cash Cards all have a fee of 5

Silver:

Setup fee is 18,000 with annual maintenance of 3,600
Credit, debit, EMI, Netbanking, and Cash Cards all have a fee of 4%

Gold:

  • Setup fee is 24,000 with annual maintenance of 3,600
  • Credit, debit, EMI, Netbanking, and Cash Cards all have a fee of 3.75%

Platinum:

  • Setup fee is 30,000 with annual maintenance of 3,600
  • Credit, debit, EMI, Netbanking, and Cash Cards all have a fee of 3.25%

PayU

This particular service offers four different memberships:

Regular:

  • Setup fee is 6,000 with annual maintenance of 2,400
  • Credit card is 4.9% with debit card at 1.25%
  • Netbanking and Cash Cards are at 4.9%

Gold:

  • Setup fee is 12,000 with annual maintenance of 2,400
  • Credit card is 3.9% with debit card at 1.25%
  • Netbanking and Cash Cards are at 3.9%

Silver:

  • Setup fee is 24,000 with annual maintenance of 2,400
  • Credit card is 3.25% with debit card at 1.25%
  • Netbanking and Cash Cards are at 3.25%

Platinum:

  • Setup fee is 36,000 with annual maintenance of 2,400
  • Credit card is 2.75% with debit card at 1.25%
  • Netbanking is 2.75% and Cash Cards are at 3%

PayZippy

There are currently five types of membership for this system:

RS 0-5 Lakh:

  • No setup fee
  • Credit card is set at 3.5%
  • Debit card fee is 0.75% for transactions less than RS 2,000
  • No Netbanking, EMI, and Cash Cards yet

RS 5-10 Lakh:

  • No setup fee
  • Credit card is set at 3.25%
  • Debit card fee is 0.75% for transactions less than RS 2,000
  • No Netbanking, EMI, and Cash Cards yet

RS 10-25 Lakh:

  • No setup fee
    Credit card is set at 3%
    Debit card fee is 0.75% for transactions less than RS 2,000
    No Netbanking, EMI, and Cash Cards yet

RS 25-100 Lakh:

  • No setup fee
  • Credit card is set at 2.5%
  • Debit card fee is 0.75% for transactions less than RS 2,000
  • No Netbanking, EMI, and Cash Cards yet

RS 1CR+ Lakh:

  • No setup fee
  • Credit card is custom
  • Debit card fee is 0.75% for transactions less than RS 2,000
  • No Netbanking, EMI, and Cash Cards yet

Other Payment Gateways in India you can check out include PayPal, PayTM, and DirecPay.

Choosing a Payment Gateway

The gateways mentioned above are just few of the options you have as a merchant in India. That being said, understanding and comparing payment gateway options is a vital part of making your choice. Following are some tips on how to do this:

PCI Compliance – make sure that the company corresponds to the Payment Card Industry Data Security Standard or PCI DSS. This is essentially the government body ensuring that all companies maintain a secure environment when processing payments through credit cards. If the payment gateway is not included in the list of PCI compliance, it’s best to skip it.

For PCI Compliance to be achieved, there are usually several requirements asked for. Following are the typical checklist determined by the governing body:

  • There should be a firewall ensuring that the network and card data are kept separated, therefore minimizing leaks.
  • The vendor-supplied passwords must be changed as soon as they become operational.
  • The access to card-holder information must be kept private – available only to a small group of individuals.
  • A unique identification ID must be supplied to every user
  • Maintains a rigid security policy that every personnel is intimately aware of :
    • Restriction against physical access to the card holder
    • Cardholder data environment utilizes an updated antivirus software at all times
    • Processing applications must have vendor-supplied security patches
    • Regular testing of the security system is performed

Safety and Security of Online Transactions – don’t forget to check the past record of the company. Have there been any problems associated with their services? Run a review on the company and ascertain whether they have satisfied customers.

Rates – check the rates, considering not just the setup fee but how much you’ll be paying on a monthly basis. Don’t forget to consider the percentage of credit card fees that will be charged through the gateway. Note that the smallest amount isn’t always the best – you have to find a gateway that corresponds to your normal business operations. Whip out the calculator and do some accounting before choosing one.

Accommodated Credit Cards/Banks – as much as possible, opt for a gateway capable of accommodating all the major credit cards such as Visa and MasterCard. Most buyers utilize this so you shouldn’t have any problem receiving payments.

Document Required Payment Gateway

Proprietorship Firm:

Any 1 of the below mentioned documents.

  • Registration certificate (in the case of a registered concern),
  • Certificate/license issued by the Municipal authorities under Shop & Establishment Act.
  • Sales and income tax returns.
  • CST/VAT certificate.
  • Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities.
  • License issued by the Registering authority like Certificate of practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.

Note: As per new policy for Proprietary concern, CITI Bank required 2 proof of existence from above listed documents. In case the merchant is having only Registration Certificate of the firm. So you can collect   Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

  • PAN card copy of Proprietor (duly stamped & signed)
  • Driving Licence/Passport copy of Proprietor (duly stamped & signed)
  • CIBIL Letter current dated (on Company Letter Head format attached) (Depending on requirement of CITI Bank PG)
  • Audited Financial Statement (Depending on requirement BOB PG its mandatory. In case it’s a new merchant it is not required.)
  • Bank attested Letter(Format Attached)/Cancelled Cheque

Private Limited Firm:

  • COI, MOA & AOA.
  • Company PAN
  • Form 32 (Not Mandatory)
  • Board Resolution (On Company Letter Head & Signed by at least two directors)
  • List of Directors (On Company Letter Head & Signed by at least two directors)
  • PAN card copy of an authorized signatory
  • Driving Licence/Passport copy of an authorized signatory
  • Audited Financial Statement (Depending on requirement BOB PG its mandatory. In case it’s a new merchant it is not required.)
  • CIBIL Letter (on Company Letter Head) (Depending on requirement of CITI Bank PG)
  • Bank attested Letter(Format Attached)/Cancelled Cheque

Partnership Firm/Trust:

  • Signed & Valid Partnership/Trust Deed
  • Registration Certificate of the firm
  • Company Pan
  • PAN card copy of an authorized signatory (duly stamped & signed)
  • Driving Licence/Passport copy of an authorized signatory (duly stamped & signed)
  • Declaration of authorized signatory (On Company Letter Head & Signed by all the partners)
  • List of Partners/Trustees (Depending on requirement BOB PG its mandatory.)
  • Audited Financial Statement (Depending on requirement BOB PG its mandatory. In case it’s a new merchant it is not required.)
  • CIBIL Letter (on Company Letter Head) (Depending on requirement of CITI Bank PG)
  • Bank attested Letter(Format Attached)/Cancelled Cheque

Society:

  • Registration Certificate of the firm
  • Byelaws of Society: Rules and Regulation of society. Some society provides this or MOA.
  • PAN card copy of an authorized signatory (duly stamped & signed)
  • Driving Licence/Passport copy of an authorized signatory (duly stamped & signed)
  • Audited Financial Statement (Depending on requirement BOB PG its mandatory. In case it’s a new merchant it is not required.)
  • CIBIL Letter (on Company Letter Head) (Depending on requirement of CITI Bank PG)
  • Bank attested Letter (Format Attached)/Cancelled Cheque

Also, all the documents should be clearly visible and stamp and signed by all merchant.

Manu Mayank

Sucker for Growth Hacking and Disruptive innovation, Global brand consulting and digital marketing exposure, Passionate about cooking and insightful conversations. I am still in process of realization of self.

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