What you must know about Payment Gateways?


Almost every new business needs to have an option for cashless transaction. And mind you, there are plenty of payment gateways to choose from. With the whole demonetisation drama the need to have multiple cashless means of payments has become nothing but mandatory. For startup entrepreneurs the next big question is which payment gateways to choose and how. Apart from just providing the gateways there is also a concern about the safety of customer’s sensitive information including bank and credit card details.

So when entrepreneurs choose a payment gateway here are few factors that need to be kept in mind:

  • Easiness of conducting a transaction for your customer
  • Commission rates
  • Refund and cashback terms and conditions
  • Easy to incorporate and integrate
  • A strong support system

But what exactly does a payment gateway do?

  • Captures the transaction details
  • Encrypts the details
  • Sends it to the processor
  • Comes back with either an acceptance or disapproval

This technology is so advanced that all the above mentioned actions occurs in a matter of few minutes.

With payment gateways it can be debit/credit cards or even the various payment wallets that have gained a strong momentum of late. But there is also a growing popularity of using UPI (Unified Payment Interface) which is even more advanced and convenient. UPIs act as good as a debit card and the customer will be able to add/send money in a jiffy. All that is needed for them is a smartphone that can read the QR code. Let us take a look at some of the top payment gateways that are usually used.

  1. InstaMojo: One of the highly used payment gateway with the recent entrepreneurs. Signing up is hassle-free and needs the basic amount of information. The transaction fees is not too high and they charge 1.9% as commission on every single transaction made apart from the small service tax.
  2. CC Avenue: This is probably the most common name when it comes to payment gateway aggregators. It is one of the leading payment solutions of the country. Interesting, almost 80% of the businesses use CC Avenue for their online payment handling activities. It has two major plans known as Popular plan and Privilege plan.

Popular plan:

Credit Card Transaction 3.5%
American and JCB Cards transaction 5%
Debit cards transaction 1.25%
Net Banking transaction 4%
Cash Cards transaction 5%
Set up fee Nil
Annual charges 1200 rupees

Privilege Plan:

Credit Cards transaction 2.25%
American and JCB Cards transaction 3.6%
Debit cards transaction 1.25%
Net Banking transaction 2.5%
Cash Cards transaction 3.6%
Set up fee 30000 rupees

  1. PayU: After acquiring Citrus Pay I September 2016 PayU has become stronger and has tied up with almost all banks. The fee varies anywhere between 6000 to 36000 rupees. It has three different plans namely: Economy, Silver and Platinum. The annual fee is fixed for all plans and is 2400 rupees.
  2. Payoneer: This offers direct bank transfers MasterCard and ATM withdrawals. Payoneer Inc. has raised $180 million from investors and the company is now keen to globalise its operations. It is known for cross border transactions from US or EU companies.

There are plenty of other choices that you can choose based on the type and need for. Here are few reasons that stress why it is necessary for your business to choose a gateway in the first place.

  1. Faster: One of the biggest advantages is the transaction realisation time is extremely quick than the regular manual credit card processing or the cheque pay-outs.
  2. Secure: The transaction carried out using the net portals are safe unlike manual processing and hence are more reliable.
  3. Increased customer reach: It makes global transactions easier and hence businesses can easily grow without any geographical restraints.
  4. Comfort and ease: Shoppers can sit at the comfort of their living spaces and just order anything that they want and make online payments without having to wait in queues.

To sum it up, payment gateways are here to stay and in fact they are already on the path of even more advancement. It will get more convenient than this! Wait and watch.


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