Payment gateway and its basics!

Payment gateway is a service which helps merchants who have e-business online to receive payments. Payment gateway gives you the option to receive money from Debit and credit cards.

Who can provide you payment gateway?

• Banks ( HDFC, AXIS, SBI & etc.,)
• Third party providers ( CC Avenue, EBS, TRUPAY & etc.,)

What are the costs expected in payment gateway?

• One time cost
• Integration charges
• Annual maintenance cost
• Transaction discount rates

One time cost: The price at which the provider will give you the payment gateway kit for you to integrate it to the website. It varies from Rs.0 of cc avenue to prices quoted by banks. The kit will given to you customised as per the shopping kart (Magento, Joomla & etc.,) used by you.

Integration charges: Integration charges are the charges that are applicable to make the kit integrate to the website and perform the test transactions and thereby bringing the website to accept payments. Few providers will levy these charges.

Annual maintenance cost: The cost incurred for a whole year for maintenance and support.

Transaction Discount Rate (TDR): It is the % of transaction value deducted from total amount paid on purchase. The TDR for credit card varies from 1.8% to 6% and for debit card is from 0.75% to 1.25%.

Documents needed:

• The merchant will have to provide KYC documents as per the provider.
• The merchant will also have to sign up an agreement on stamp paper with the provider.
• The agreement will mention the Onetime cost, Integration charges, AMC and TDR.

Going live:

• After all the documentation process and the integration are done. The testing process will be done. Once the test transaction is successful, the merchant can go live.
• Just going online doesn’t mean profitable business, Efforts has to be done to advertise market and promote the product.

Hope you would have got some insights on Payment gateway!!

Thanks for viewing :)