Here’s what we’ll be finding out about payment gateways.

What is Payment Gateway?

A payment gateway is a transaction medium between a merchant and a consumer. It may be on an offline outlet or online website or through a payment service like UPI, NEFT, RTGS. There are four parties that involve in the payment gateway process: the customer, the merchant, the issuing bank, and the receiving payment or acquiring bank. It is an easy and simple process.

The customers transfer their personal and financial information between the merchant and customer by swiping their credit or debit card or processing their bank account information. Security layers encrypt this exchange and prevent sensitive information from falling into the wrong hands. It determines the number of funds in the customer account used for the purchase and, accordingly, notifies the approval or decline of the transaction.

Payment Gateways vs Payment Processors: What’s the difference?

We have explained above how the whole payment process works. Hence, it requires two basic components: payment gateways and payment processors to be successful and secure. Following are some differences between the two:

1. The payment gateway receives the customer’s information and forwards it to the payment processor for verification through the card system. Payment processors relay the data and verify that the card details are valid and secure.
2. Payment gateways inform customers and merchants of approvals and declines of transactions. Through data transmission between issuing and receiving banks, payment processors communicate the response to the payment gateway.
3. When transferring data to the payment processor, the payment gateway needs to encrypt and certify it as an ISO 8583-compliant platform. Thus, payment processors have higher development costs and longer development times than payment gateways. Payment gateways need a simple SSL encryption.
4. Payment gateway is more economical regarding certification and development costs, making it more suitable for startups and small businesses.

Three Types of Payment Gateways

With the advancement of technology, many businesses have moved from direct bank transfers to a more convenient, secure, and credible way of accepting payments using a payment gateway. Here are some of the most common types of payment gateway:

Hosted payment gateways

Using this payment gateway, when a customer clicks the ‘buy’ button on the merchant website, the system redirects the customer to the payment service provider’s website. Now, the customer needs to enter the relevant card or bank information. Upon confirmation, the customer then gets back to the merchant’s website to receive their order confirmation message. As a way of ensuring customer confidence, merchants can include their logo on the payment page.

Self-hosted payment gateways

This type of payment gateway, also known as pro-hosted payment gateways, involves the client providing card or bank details on the merchant’s website. Customers may need to submit information in a specific format. Upon submission, the data is then transmitted to the payment gateway’s URL. As it is on the merchant’s website, it makes the customer experience better.

API hosted payment gateways

The customer inputs their credit card or bank details on the merchant’s website in this payment gateway. Instead of directing to the URL page, the payments are made via HTTPS queries or APIs. The merchants have complete control over the whole purchase process. However, to provide this facility, merchants must possess SSL certification and DSS compliance.

Considerations for Choosing a Secure Payment Gateway

A reliable payment provider is critical for merchants to provide a smooth customer experience and increase traffic to their offline or online portals. Today customers can easily download the payment service providers’ app on their phones. One such example is the Bharat QR code in the android app.

Here are some things to consider when choosing a payment gateway:

• Businesses must consider how many payment methods and currencies they wish to include in their payment process. The more payment options available, the more comfortable and satisfied their customers will be.
• To provide good customer service, the speed of the entire sale process is essential. This includes the transfer of funds from the customer’s account to the merchant’s account.
• Another aspect to consider is the transaction fees and service costs. Fees depend on the volume of transactions, frequency of transactions, and many other factors.
• Merchant accounts are a must for some payment gateways. In comparison to other options, they charge lower transaction fees. Also, they are considerably more safe and secure, especially for large volume businesses.
• Payment gateways must be 3D secure and compliant with PCI data security standards-the highest level of security.

Conclusion

After reading the above article, you should have a fair idea of what a payment gateway is. Analyze your business needs and then choose the right payment gateway. Today, payment gateways like PayU come with a variety of web and mobile applications. It is a complete payment gateway solution with low processing fees, low commissions, and enhanced security. Build your automated payment process with PayU.

The post Payment Gateway: Definition, Types, and All appeared first on PayU Blog.

Problems in International Payments

Compliance

Before receiving payments from foreign banks, businesses must comply with several regulatory requirements imposed by the Reserve Bank of India. While following these principles is a one-time commitment, its complexity may be exhausting.

Conversion of currencies

Once you’ve completed the paperwork and established the legitimacy of your company, the following step is to determine the appropriate cost for your goods based on different exchange rates. You must also devise a method to take payments in numerous currencies. Your money should be instantly translated into Indian rupees (INR) to ensure a smooth transaction.

Payment monitoring

Accepting foreign payments without connecting with a payment gateway will be time-consuming and inconvenient in the long run. International payment tracking is notoriously tricky and unreliable. Merchants must follow up manually with the issuer’s bank and the buyer to obtain the funds.

Excessive transaction fees

The transaction fees paid by banks or card providers are one component of worldwide payments that many Small and medium businesses neglect. You would be correct in believing that foreign payments are subject to a high transaction fee.

How Do International Payments Work for Travel Websites Using Payment Gateway?

Below are some of the steps for an international payment gateway for a travel website

• The customer visits the merchant’s website and pays using a credit or debit card.
• The money is sent to the Payment Gateway.
• Later payment gateway sends the amount to the merchant’s account in INR.

Steps to Activate International Payments on PayU

Step 1: The merchant submits the necessary paperwork

Step 2: The PayU staff ensures that all paperwork is in order and that all charges have been completed.

Step 3: The PayU team submits the lead for approval to the banking partner.

Documents Required for International Payments

Below are some of the documents required to activate the international payment gateway for travel businesses and freelancers

1. Bank statement (from the previous year) / ITR (the latest two years). (Only for new businesses).
2. The balance sheet for the last two years has been audited. (If the company is older than two years)
3. Statement of profit and loss (If a company is more than two years old)
4. In the case of physical goods, and an import/export certificate is required.
5. In the case of bakeries and food goods, an FSSAI license is required.
6. An IATA certificate or any other recognized certificate for travel LOB is required in the travel business.

PayU’s Document Verification Steps 

1. The Terms and Conditions, Privacy Policy, Refund, and Cancellation Policy, and Shipping Policy should all be included.
2. The refund and cancellation policy should include the reimbursement method and the period for processing refunds. If the payment is in the form of shop credit, the validity of the store credit must be stated.
3. The shipping policy should specify whether the merchant additionally delivers internationally. Submit the IE (Import/Export) code, transit insurance, and delivery partners.
4. Validate the transaction flow by testing the login and password to be shared.

If a URL redirection is required, merchant compliance must be supplied. The specifications of the redirection URL should be explicitly communicated to the merchant compliance team in the merchant compliance email.

Bank approval

The bank gives the final permission, and the service will be activated in your PayU account.

International Payment Gateway for Travel Business and Freelancers

The travel business and freelancers have particular obstacles when it comes to payments. These difficulties, ranging from late payments to organization-specific payment schedules, can pressure cash flow. As a result, a good payment gateway should address these concerns. Also, some of the benefits of having an international payment gateway  for freelancers are

• Easy currency conversion.
• International payments can be easily tracked.
• Heavy transaction charges can be avoided.

PayU can act as the best international payment gateway for freelancers as well as for travel businesses.

Below are some of the features one should look for international payment gateway for freelancers in India

Various payment options

As a freelancer, you may work with different types of customers. When it comes to paying, each customer may have their preferences. Some clients may choose net banking to make payments, while others prefer UPI or wallet transfers. Allowing your customers to choose whatever payment option works best for them will encourage them to pay you sooner. A decent payment gateway should support all payment methods, including card and wallet transfers.

Transaction limit

The transaction limit is the most money that may be transmitted in one go. Transaction limitations vary amongst payment gateways. It is critical to define the transaction limit for freelancers dealing with huge settlements to avoid uncertainty in the future. If a client cannot pay all of their dues in one transaction, they may be discouraged from doing so. It may also be detrimental to your reputation.

Settlement time

The time it takes for money to appear in your bank account after a client has cleared payment is known as settlement time. There is a time between when a payment is started and when it is settled in most cases. Payment gateways provide a variety of settlement alternatives. As a freelancer, choosing one with the shortest settlement time can help you solve cash flow challenges.

FAQs

The post PayU: An International Payment Gateway for Businesses and Freelancers appeared first on PayU Blog.

As the world gets connected even more, it makes sense to do business globally! Global adoption provides businesses opportunities to widen their customer reach and increase brand visibility. If you want to grow your business globally, it’s in your best interest to provide a customer-friendly payment gateway that lets you accept international payments on your website or app.

We are happy to share that PayU offers international payments acceptance to our merchants in partnership with leading banks. Post activation, it will allow you to accept payments in 100+ currencies.

However, activation of this service is subject to approval from our banking partners and internal checks. This is a paid service and charges for the same will be communicated once we receive relevant documents from you. So, if you are thinking to expand your business into international markets, get in touch with us here!

Once we know that you are interested in activating international payments, we will get started with the process. Here is a step-by-step guide of the process followed to enable international payments for you.

Three Steps To Activate International Payments:

Step 1. Merchant provides required documents

Step 2. PayU team verifies documents and charges are finalized

Step 3. PayU team submits lead to banking partner for approval

Step 1 – Documents submission by the merchant:

1. Bank statement (Last 1 year) / ITR (Last 2 years). *(Only for startups)
2. Audited balance sheet for last 2 years. (If Company is more than 2 Years Old)
3. Profit and loss statement (If Company is more than 2 years old)
4. Import/Export certificate in case of tangible products.
5. FSSAI license in case of bakeries and food items.
6. IATA certificate in case of travel business or any other authorized certificate for travel LOB.

Step 2 – Verification of documents by PayU

After verifying the documents, PayU Team will get in touch with you in order to discuss the charges, etc. for international payment gateway services.

Essential requirements to get approval:

• The website should be complete with Terms and conditions, Privacy policy, Refund, and cancellation policy and Shipping policy.
• The refund and cancellation policy should contain the mode of refund and the time frame within which refund will be processed. If it is in the form of store credit, store credit validity is to be mentioned.
• Shipping Policy should clearly state whether ME is doing International delivery also. If so then details of IE (Import/Export) code, transit insurance, and delivery partners is to be provided.
• Test login and PW to be shared to validate the transaction flow.
• If there is any redirection of URL involved, then ME compliance for the same to be provided. In merchant compliance mail, redirection URL details are to be clearly informed to the merchant compliance team.

Step 3 – Approval by Bank

The final approval will be provided by the bank and accordingly, service will be enabled in your PayU account.

FAQs on acceptance of the international payment:

How merchants can accept overseas payments simply and securely?

Merchants can accept overseas payments through a simple and secure payment gateway such as PayU as it is PCI DSS compliant and provides 128 BIT encryption. Also, the platform’s UI is quite user-friendly.

What forms of international payment can PayU merchants accept?

PayU merchants can simply and securely accept credit and debit card payments. PayU’s international payment acceptance feature allows you to accept payments in 100+ currencies.

Is there a payment gateway that accepts payments from cards with non-Indian billing addresses?

PayU supports international payment acceptance. But it’s not activated by default to all the merchants. International Cards get a lot of charge-backs. Thus, every payment gateway in India discusses the requirement in details with the merchant, and it’s activated on case to case basis.

What is the best international payment processor for high-risk merchants?

PayU is the best payment processor for high-risk merchants. PayU has the expertise and knowledge of all the ins and outs in the niche. Also, you can talk to your KAM or customer care team for any specifics. It is optimized for mobile and desktops. You can accept international payments in 100+ currencies. PayU is highly secure as it is PCI DSS compliant.

Can a global e-commerce merchant accept international payments using PayU?

Yes, a global e-commerce merchant can accept international payments using PayU. PayU is India’s leading online payment solution provider. It has already achieved a new milestone servicing over 100K merchants for its international payments business. PayU has been providing international payment services since 2016. It supports 100+ currencies including the US Dollar (USD), Euro (EUR), British Pound (GBP), Australian Dollar (AUD), Arab Emirates Dirham (AED), Singapore Dollar (SGD), Bahraini Dinar (BHD), New Zealand Dollar (NZD) and others.

Conclusion

We are happy to empower all our eligible users with these consistent enhancements and product updates by making online transactions quick, simple and secure. Integrate PayU’s International Payments Acceptance feature and experience international transactions like never before!

Read our blog on International Money Transfer to get a detailed guide on the type of international transfers, how to find the best international payment gateway and much more.

Scale your business to new heights and grow globally!

The post Accept International Payments with PayU appeared first on PayU Blog.

From Shrijay’s trunk of expertise….

The people and businesses are going global with a stark rise witnessed in international travel as well. Perhaps, this is a reason why international money transfer is the need of an hour.

International money transfer is an easy and secure way to send and receive money, globally. There are some specifics that one needs to keep in mind while transferring money internationally due to different rules and conditions set by the bank. Outward remittances are tricky as they are under the scrutiny of the government.

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Wire transfers are electronically transferred money from one entity to another across the world. There are two ways to do it:

• Inward remittances: Transfer from a foreign country to India.

• Outward remittances: Transfer to a foreign country from India.

Types Of International Transfers

Compare multiple mediums: It is obvious to think of the bank as the first medium to transfer money to a distant land. But, one should always compare all the mediums beforehand to take a wise decision.

High processing fees and special brokers come with a price. Money transfer services offer competitive exchange rates and customize service as per needs. Plenty of online money transfer services offer the convenience of time and place. Compare all those mediums based on service, risk factor, exchange rate, and fees.

Online transfer: Online payment services are available for sending and receiving funds. The transferred funds get converted into a receiver’s currency.

Money transfer: The global payment service providers simplify the fund transfer process. These companies have a worldwide reach wherein they send money to their agents from where it is available. You can receive the same through your normal bank account on a prepaid card or via a mobile wallet.

Mobile wallet: A mobile wallet allows sending and receiving funds directly from a Smartphone, making it the preferred choice for a small amount. The downside is the high conversion charge and lack of options to choose from.

Prepaid cards: Prepaid cards are quite handy since they are easily accessible funds using ATMs.

Bank Wire Transfer: Individuals wishing to transfer funds from a foreign country to India need to approach the local bank for giving an order to transfer an amount to the entity in India.

• Currency of transfer

• Bank Name

• Common bank’s BIC/SWIFT Code

• BSB Number

• Account Number

• Account Name and Address

These details help the bank to identify the account for depositing the money. Bank sends a message about the details of a settlement post in which the transfer happens. Here is where the amount is credited to the recipients’ account.

How To Find The Best International Payment Gateway

Fees: This is the most important point that helps to decide the money transfer process. The payment routes through a series of different intermediary banks before the payment get to the recipient. The processing fee charged by these banks gets deducted from the payment.

Comparing fees
is the best option to select the most cost-effective option. Also, consider the
fees that apply to both parties involved.

Reach: The limited read of a few service providers the reach becomes an issue. It is therefore recommended to opt for the most accessible method for a convenient transfer.

Exchange rates: Exchange rates matter a lot in international money transfers. Opt for a provider that gives you fast and safe transfer with a convenient exchange rate. A high charge of the exchange rate can directly affect the amount of money sent by reducing its value.

Reputed Agent: One expects a strong company to control and manage their fund transfer process. A competitive scenario needs the surety of funds and personal details in safe hands. Better to check out some customer reviews before making your decision.

Know your senders’ limit: Make sure to set your daily international transfer limit for the safety of your money. This will help you plan your transactions better and receive the money at the desired time.

Check processing times: Some service providers’ process payments only on certain days of the week. Payments may delay when received after the cut-off time. Hence it is best to plan your IMT.

Pros Of International Payment Gateway

Convenient and Simple: Most money online remittance services offer simple and easy money transfers. The recipient gets the funds in real-time once transferred by the sender.

More choices: There are various methods and online applications like PayU Money that help to send or receive money. You can request the multicurrency payment option and use it to receive international payments (add more details as required). Such alternatives help you from relying only on the banks for money transfer.

Secure: A trusted service provider is always a safe bet when it comes to wiring the money. Ideally, one should go for the ones who are verified and has a VeriSign signature assures transaction is safe and secure

Cons Of International Payment Gateway

Fees: The only drawback is that most money transfer providers have applicable fees that could make their services expensive. Hence, it is best to choose the best by looking into various options available.

The above knowledge, tips, and personal experiences belong solely to Shrijay Seth of LegalWiz. You can reach out to him for any advice related to this topic on LinkedIn (please check the author section below for information). If you would like to write a blog for PayUmoney as a guest please do get in touch with us: marketing@payu.in

It is time to take your business beyond borders with PayUmoney (T&C applied).

The post Things You Need To Know Before Making International Money Transfer Online appeared first on PayU Blog.