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.

Prospects of Online Payments 

The astronomical rise in the number of mobile users and data usage in India indicates the prospects of online payments and the importance of a secure and robust payment gateway. By the end of September 2021, India had 834.29 million internet subscribers (broadband and narrowband). Notably, 37.67% of the internet subscribers belonged to rural areas. The monthly average data consumption per wireless data user in India stood at 14 GB in June 2021 as per the Department of Telecommunications (DoT) report. In March 2014, the data consumption per wireless data user monthly (average) was 61.66 MB. These numbers indicate the potential in the online payment market, as well as reflect the needs of the users who look at a diverse experience led by robust security networks for transactions on online payments platforms.

However, the question remains: Which payment gateway is supported by Shopify and how can I integrate the payment gateway of my choice?  Let us take each of the questions one by one.

Payment Gateways Supported By Shopify

Shopify Payments India gives you the freedom to select the payment gateway and begin your online selling journey within no minutes. The right choice of payment gateway is crucial to starting a fulfilling user experience journey. It is also essential to support it with well-integrated online payment solutions. In a bid to integrate your chosen payment gateway on Shopify Payments, you need to have the required plugins built by the respective payment gateways on the respective payments platform for a fast interface. “PayU India provides you with a well-integrated payments platform” that makes your pos payment experience, a story of just a few clicks”.

Acceptance of A Boutique of Payment Sources  

Shopify store supports a slew of payments sources, such as:

• Credit cards
• Debit cards
• Net banking
• Digital wallets
• Bank transfers
• UPI
• Cash on delivery
• EMIs

It also supports Buy Now and Pay Later online payment methods that can help you enhance customer experience and customer loyalty to the brand. PayU, India’s robust payment gateway, allows you to switch and choose among the various payment sources with ease and convenience.

Shorter And Smarter Payment Settlement Period

The payment settlement period is the time taken by a payment gateway to interact with the source to fetch money and settle payments. The payment settlement period is a success for both the customer and vendor if it is shorter and smarter. With a robust infrastructure, this can be achieved through payment gateways, such as PayU. The “right choice of payment gateway enables you to get settlements on the same day”, choose PayU. 

The High Transaction Success Rate

The loading time to the “payment success page is essential to a good customer experience” as it is when your customer decides to choose a payment gateway. It is, therefore, critical for a payment gateway and the online payment processors involved to record a high transaction success rate, which will magnify the brand visibility among customers across online payment channels. PayU India’s smart algorithms enable its users to record the highest transaction success rate without hiccups.

Steps To Integrate Payment Gateway On The Shopify Store

A few simple steps can enable you to integrate the PayU payment gateway on your Shopify store. Follow the instructions given below:

1. Go to Settings on your device and select the online payment provider. 
2. Click and add the online payment provider. 
3. From the DropBox, select a third-party payment gateway.
4. Fill out the online form.
5. Click to activate your online payment gateway.

Payment Gateway Fee On Shopify

The payment gateway fee or online payment fees is critical when selecting a Shopify payment gateway. Payment gateway providers ask for different charges. As a business or individual seller, you should be aware of all payment gateway charges before choosing. Some of the common charges asked by a payment gateway provider include:

1. Setup charges for payment gateway
2. Maintenance charges for a year
3. Integration charges for a smooth online payment experience 
4. Merchant discount rate for an enhanced experience

It is important to note that, along with these payment gateway charges, Shopify platform charges are also applicable. Therefore, “before you click, do a quick check on payment gateway” for integration level, transaction success rate, additional features offered, and overall payment charges involved.

The post Choose The Right Shopify Payment Gateway For Your Website | A Quick Guide appeared first on PayU Blog.

Above all, it is the charges, including Merchant Discount Rate (MDR) and other associated payment fees, that become key in the decision to go for a specific payment gateway. Read on to know more about payment gateway charges and how to choose the right payment gateway based on the online payment charges applied.

MDR is the charge by a payment service provider for an online payment made via different online payment methods. While this amount is typically paid by the merchants, in many cases, the payment gateway asks for an additional amount from the customer to cover the MDR.

Understanding Payment Gateway Charges

Payment gateway charges are the cost incurred by a business to facilitate online payment via the chosen payment gateway on the website or app. The payment gateway charges are determined as a percentage of an online payment amount and depend upon the type of online payment methods used by the customer.

A payment processing gateways provide you with much more flexibility and reach than the traditional modes of payment PoS (point of sale). It enables your business to better manage all payments with options for instant refunds, real-time bank settlements as well as efficient operations.

Key Factors Impacting The Online Payment Charges

Some of the key factors that impact online payment charges include:

1. Interchange rates – are charges for credit card payments incurred by issuing companies such as VISA or MasterCard on every online payment you make from your bank. This rate includes the online payment handling costs incurred by the bank and investments done to reduce fraudulent transactions. With the rise in the number of online payments done by credit cards in India, it is important to be aware of the interchange rates and how they are calculated based on the type of card and chosen mode of payment.
2. Merchant fees – are charged if you want to accept credit card payments on your website or app. It is the payment fees charged for interlinking the credit card network to your merchant account. The merchant account allows you to accept online payments done via credit card. In contrast, the merchant account provider deposits the amounts received through credit card payment on your website or app into your account at regular intervals.  
3. Payment safety – charges are applied depending upon the level of safety required over each payment and its mode. For instance, payment done physically via a credit card at a store attracts lesser hassle compared to payment by credit card online. Therefore, payment gateway charges are directly dependent on the safety aspect of a transaction and its mode.

Various Components of Payment Gateway Charges

Payment gateway charges or fees include various components required for efficient online payment processing. These include – 

• Payment gateway setup charges
• Annual maintenance charges
• Integration charges
• Merchant Discount Rate (MDR)

Know The Payment Gateway Charges

It is important to know about all the payment gateway charges involved before you seal a provider, as it has a direct impact on your business revenues. Some of the important parameters to keep in mind include;

• Type of transactions conducted or expected on your website or app
• The frequency of various transactions
• Revenue generated or expected to be generated by the business

Keeping these parameters in mind, you should look at other aspects involved in the online payment gateway, such as the number of payment sources supported, payment safety, success rate, and other additional features provided. 

Remember, one should not make a decision only based on the charges by a payment processing gateways but look at the entire landscape of things offered to take the final call. 

Want to check the PayU Payment Gateway Charges? Click here

“Try PayU Payment Gateway to Grow more. Do more. Be more.”

Some Features of The PayU Payment Gateway Are:

• Easy Integration with APIs, feather-light SDKs, plugins, and play partnerships.
• Industry best success rates through strategic partnerships.
• Offers 150+ payment modes across Credit Cards, Debit Cards, Net Banking, EMIs, BNPL, and UPI.
• Simple and transparent pricing that suits your business.
• 24*7 support at each step.
• Accept international cards in a single integration with our dynamic currency converter to show prices in local currency.
• Instant Refunds are disbursed within 5 minutes of the refund request.

FAQs

The post What Are Payment Gateway Charges? A Complete Guide appeared first on PayU Blog.

How Does A Payment Gateway Work

A Payment Gateway plays a vital role in every online transaction taking place globally. It authorizes transactions between merchants and customers.

Let’s delve a deeper into the sequence of events during the checkout process –

1) Once the customer confirms the order and selects the payment option, the customer’s browser encrypts the payment information and sends it to the merchant’s website. This encryption is done via Secure Socket Layer (SSL). For this process, the merchant needs to be SSL certified. This encrypted information is then passed on to the Payment Gateway by the merchant’s website.

2) The merchant’s chosen payment gateway takes over from here on.

3) This Payment Gateway forwards the encrypted information to the merchant’s bank.

4) If the chosen mode of payment selected by the customer is a debit or credit card or any e-wallet, then the bank would further forward this encrypted information to that association, which in turn forwards it to the issuing bank.

5) If the chosen mode of payment is net banking or UPI transaction, then this encrypted information goes directly to the relevant bank’s servers to the customer.

6) The customer’s bank then checks the customer’s account to ascertain the availability of funds and other criteria like CVV or Pin match, any limits set by the customer, etc.

7) On assessment, if the transaction fulfills all the specified protocols, the client’s bank approves the transaction. If there is any mismatch in data or non-availability of funds, the transaction is declined.

8) This response is coded and sent back to the Payment Gateway.

9) The Payment Gateway then forwards this response to the merchant by duly approving or declining the transaction.

How Crucial Is A Seamless Payment Gateway?

The entire process needs to be super swift and requires a well-coordinated effort between all the parties concerned. The efficacy of the Payment Gateway rises to the fore here. A reliable Payment Gateway working with optimum speed should be able to complete this entire process in a matter of seconds.

The role of a Payment Gateway does not end here. Till this stage, the status of the transaction, whether approved or declined, is determined. But the merchant is yet to be paid. It is here that the second stage of the Payment Gateway’s process kicks in.

1) On receipt of approval, the merchant sends this sanction code to their bank via the Payment Gateway.

2) The merchant’s bank then deposits the sanctioned amount into the merchant account of the vendor or in the aggregated merchant account of the Payment Gateway.

3) The payment is finally transferred to the business’s bank account from this merchant account.

About The Merchant Account

The need for a merchant account here is two-fold. It acts as a safeguard for business clients and credit card companies. It holds the money safely for a transitionary period until the order is completed to the customer’s complete satisfaction. If there are any issues with the e-commerce order, the client is refunded from the merchant account.

There is an option for the vendor to either have their merchant account or choose the aggregated merchant account offered by the Payment Gateway. The choice is made considering the cost factors involved and the cash flow duration in each case.

How Are Payment Gateways Regulated In India?

 The business owner needs to understand how Payment Gateway works in India. RBI guidelines regulate the workings of Payment Gateways. Vide a circular dated March 17, 2020, RBI has issued “Guidelines on the regulation of Payment Aggregators and Payment Gateways”.

What Is The Ideal Process For A Payment Gateway Selection?

 The selection of a Payment Gateway also depends on how it can be integrated into the merchant’s website. Software developers generally carry out this task for the merchants. Knowledge of PHP, Java, or C# coding is essential for this job. How a Payment Gateway works in PHP and how a payment gateway works in Java or C# needs to be tested exhaustively before making it live.

Ready-made software is also available that allows the merchant to blend the Payment Gateway with their website without coding.

 In India, PayU India offers the service of Payment Gateway with the best success rates. It already has a broad base of satisfied clients. Some of the salient features of partnering with PayU India are – 

• PayU India offers more than 100 payment options for your customers.
• PayU India allows you to accept international payments as well.
• PayU India ensures fast and easy-to-use operations.
• PayU India provides extreme safety and world-class security.

Conclusion

With a strong push towards digitization, merchants now realize the importance of online presence. There are so many businesses that are now available only online. The selection of the right Payment Gateway is critical to the success of an e-commerce venture. Merchants can read the above pointers carefully and make good business decisions.

FAQS

The post Top 9 Steps To Know How A Payment Gateway Works in India 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.

Still, it might be challenging to make the right and trustworthy choice at times. Apart from checking the Payment Gateway charges and comparing them, there are several other factors to consider while choosing a Payment Gateway for websites.

While selecting a Payment Gateway, you must examine the technological and financial aspects of the chosen solution, the convenience for your consumers, and the security of that gateway.

Why is a Payment Gateway Essential?

A Payment Gateway refers to a merchant service to authorise credit card transactions. The acquired card details of a customer are sent to the Payment Gateway for validation. The Payment Gateway then transfers the details to the respective bank (that issued the card) and verifies it. Finally, the card provider responds with the details, including if the required amount is available for credit and if the details provided by the customers are accurate. If every detail favours the transaction, it is approved by the Payment Gateway, and the transaction completes. Many Payment Gateway APIs also include enhanced security features like fraud detection.

Top 9 Things to Consider while Choosing a Payment Gateway:

Here are several points that must consider before choosing the Payment Gateway to integrate with your website, as follows:

Modern or traditional?

It would help decide which Payment Gateway API you are looking for, modern or traditional. Here is a brief differentiation of both:

Standards for encryption:

The encryption standard is the next thing to consider and must be prioritised. A Payment Gateway handles the financial details of the customers, and even a single security breach can cause massive destruction to their economic status and your company’s overall reputation.

Therefore, you must ensure that the Payment Gateway integration that you choose has highly effective encryption standards set in place.

For the beginning, you can choose a Payment Gateway API that offers encryption standards like tokenisation (to hide the card details completely).

Choosing a secure Payment Gateway eradicates several risks and thus ensures reduced processing charges. It also helps to eliminate the chances of human error and improve reporting visibility.

Compatibility:

You never know which device or operating system your customers are using. Thus, it is essential that whichever services you offer are compatible with many devices, including the benefit of access to a Payment Gateway. This will eventually help enhance the overall user base due to the ease of payments

Speed:

Various Payment Gateways have varied processing times. Still, there is always a need for a processor to obtain and validate the card details in just a few seconds whenever a customer initiates a transaction. Thus, you are also advised to consider the time required by these Payment Gateways while deciding to ensure that you quickly receive your payments and never have to wait much.

Features for reporting:

As per the industry and business you deal with, you need a Payment Gateway with extensive reporting capabilities, thus focusing on this consideration. The Payment Gateway must also provide the feature to let you go through all the transaction activities to help you analyse and complete an overview of the received payments. You might want to check your commissions at any instance, and then the various report formats must be available with the Payment Gateways.

Other security aspects include fraud detection:

Fraud detection is a primary concern you must check for while selecting a Payment Gateway API. Ensure that the chosen Payment Gateway for the website can detect any suspicious behaviours before completing any transaction. This is beneficial for your company as well as for your customers.

Capabilities for billing:

Having a built-in billing feature is another feature that may help your business, and thus you are suggested to choose a Payment Gateway assuring the same. This capability will ensure that the entire payment procedure gets more straightforward, and you no longer have to depend on any third-party services

User interface and usability:

At least once every few days, you will need to connect with your Payment Gateway API for checking transactions, fees, and several high-value data. When such a need arrives, you will surely expect a satisfactory experience. This is why having a Payment Gateway that is easy to access, user-friendly, and straightforward is essential. However, to know which one is the best suited as per your expectations, it is advised to check a few services first and only make the final decision.

Fees and costs:

The final consideration while choosing a Payment Gateway has to be the applicable fees and costs. Based on the array of features provided, the price of the Payment Gateways might vary significantly. Some are available for free, while the others are for a few dollars or more. Your decision is dependent on your budget and how well you expect your organisation to function.

Conclusion:

There isn’t anything like a perfect product or service while considering anything, even during the consideration of the Payment Gateways. The different gateways are suitable for different people based on the use case, the demand, the budget, and other factors. The above-mentioned key considerations are the best suited to help you make the right decision while choosing a Payment Gateway.

To read more such valuable information, check out https://payu.in/

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