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.

Along with suggesting the must-have features to look for in a PG, we will also provide a comprehensive guide on how a payment gateway works. Read on.

What Is A Payment Gateway?

Payment Gateway (PG) is an online payment settlement service that a third party provides. A PG undertakes the most crucial business task – receiving payment from the end consumers. If the User Interface (UI) of the gateway is such that it does not let the user navigate the application or website easily, then the customer might end up not placing the order. You want to avoid confusing the consumer at such a pivotal stage.

Now, the payment gateway is undertaking the entire transfer transaction from the consumer to the seller. But, first, it integrates with your e-commerce website, post which it authorizes the transactions.

How Does A Payment Gateway Work?

Since you are at the forefront of the business, you must understand the following guide on how a payment gateway works.

The payment gateway service is either provided by a bank or by an authorized payment service provider. The procedure is quite systematic – let’s delve deeper into its functioning mechanism.

Here are the steps that any typical payment gateway follows while processing a transaction.

1. The customer starts with a purchase order on your online e-commerce store or mobile application.
2. The customer is then led to the payment landing page. Typically, the customer is provided with several payment options; credit cards, debit cards, payment wallets, UPI, and net banking are the usual choices available.
3. Suppose the customer opts to pay using her credit card – she has to enter the cardholder’s name, the unique card number, the card’s expiry date, and CVV. Similarly, for other payment options, some secure details are required to proceed further, and such details are encrypted to ensure there are no security breaches on data front.
4. Since the payment gateway manages the regulations, the merchant doesn’t separately required to comply with Payment Card Industry Data Security Standards. The gateway also ensures that the customers are not directed away from the website while processing the transaction.
5. The customer details are then forwarded by the merchant to the payment gateway.
6. Once the gateway receives the details, they are forwarded in a readable format to the payment processor of the merchant’s bank.
7. The information is further delivered to the card association through which the transaction is taking place.
8. Now, the card association either approves or denies the transaction. This decision is based on verifying the user’s encrypted details and additional verification tests like OTP or fingerprint scanners.
9. If the card association allows the transaction to proceed further, a request is sent to the buyer’s bank. The mechanism is necessary as the bank ensures sufficient available bank balance to process the transaction.
10. Finally, when all the security checks are met, the money flows from the buyer’s bank to the payment gateway. The payment gateway then has the responsibility of settling the transaction with the seller. 

As the business owner and the seller, you should know the money trail, and it’s time to reach your bank account. Now, What could be the best payment gateway for my requirements?

There are various payment gateways out there, and you might think you could proceed with any for your business. But as your business needs are unique, you must select a gateway that suits your requirements. Below, we discuss some notable features you should prioritize in a PG.

Top 10 Features To Have In Your Payment Gateway

Payment Options Provided

You must choose a gateway that permits multiple payment settlement modes. So, look for a gateway that offers a versatile array of options.

Does the Gateway Support International Payments?

With an online presence, you can reach customers sans boundaries. If you want this facility, do your research as to how much payment gateways cost. Also, make sure that the facility you select supports multiple currencies.

Payment Settlement Duration

The money transfer to the seller’s account is usually not instantaneous, and it takes 2-4 working days for the seller to receive the money in their bank account. Therefore, it would be best if you analyzed the offerings to make a sensible decision.

Can The Gateway Be Integrated?

The gateway must have a plugin integration option. If you are setting up a shop on an e-commerce platform, you can get started immediately.

Seamless Onboarding

Cross-check the documentation requirements with the provider before onboarding. Then, select a gateway that provides a remarkable experience.

After-Sales services

What happens when you get stuck using the service? It would help if you selected a provider that answers all your queries in real-time.

Costing

Usually, payment gateways charge a standard fee of 2-3% per transaction. However, if the traffic volume on your website is not significant at the moment, it might not be easy to pay per transaction. Talk to agents and try getting a decent quote.

Add-Ons

Like a bank provides a host of services, many payment gateways offer additional services such as auto-collect and payment, employee fund transfer, handling customer refunds, etcetera. If your business needs are to grow in the future, it will help if you had all your cash management activities under one umbrella.

Analytics Report

Once your freelancing business, startup, or company grows, you would want regular business analytics.

Modes of Collection

A gateway that lets you collect money by sending professional invoices on blogs and websites and through QR codes and excel sheets will be the perfect solution for your business.

The risk management team at PayU uses Machine Learning and real-time transaction monitoring technologies to avoid payment frauds and provide a haven to the customers. You don’t need to worry about making bulk payments to suppliers and employees, even on bank holidays – it is all handled efficiently by PayU’s payment gateway. You can send refunds to customers if needed and access a picturesque dashboard to manage payouts seamlessly.

Conclusion

A good payment gateway, such as PayU, will make managing a business a lot easier. Know the payment gateway transaction limit in India, and choose one that suits your needs.

The post How To Choose The Best Payment Gateway For Your Business? appeared first on PayU Blog.