the ultimate guide to payment gateways in India

An online payment gateways in India is a service that securely send

credit or debit card information or bank account information to

a payment processor from a payment portal, such as a website.

How do payment gateways in India work

The payment gateways in India mechanism is heavily reliant on three processes.

Request, Encryption, and Fulfillment

When a merchant provides or promises to provide a service or product.

They can request that the customer pay using the merchant’s payment gateway.

The customer is then expected to make the payment via the payment gateway.

That’s when the payment gateway kicks in, encrypting the customer’s personal information.

The data is encrypted to protect the customers’ data that was sent to the merchant.

For the payment to take place, an authorization request is generated.

Before any transaction can take place, the bank must approve this authorization request.

After the payment authorization request has been approved, the transaction is completed.

Following that, the merchant receives payment.

As you can see, this process is extremely safe and secure.

Payment gateways have become very secure platforms for payment, with UPI id

and KYC being important for such transactions.

Types of payment gateways in India

There are two types of payment gateways, on the basis of who approves the payment.

  1. Third-Party Payment gateways in India
  2. Bank Payment gateway in India

Let’s understand how both of them work

Third-Party Payment gateways in India

Third-party payment gateways are now one of the most popular payment methods.

Because the majority of these are Google Play and government-approved platforms,

These third-party payment gateways are widely used and have a large number of loyal customers.

These third-party payment gateways are now accepted in the majority of stores and other locations where

online payments are required. To increase their popularity, these payment gateways may also offer large

discounts and gift coupons.

 Many merchants find this to be an excellent method of receiving payment.

This is because customers have a higher level of trust in third-party gateways.

Furthermore, if a glitch or mishap occurs during those transactions, the merchant will not be held liable.

The customers find the third party gateways reliable, as they feel the third party gateways, won’t scam them.

Third-party gateways collect information about both customers and merchants.

Everyone who wishes to conduct a transaction through a third-party gateway must have an account with the

gateway. The account must also include the person’s bank account information. Third-party gateways assign a

unique id to each customer. They can send and receive money using this method. Third-party gateways are also

popular due to their versatility, as they allow customers to send money to banks.

Also the lack of  early termination fee, customer support fee, statement fee,  IRS fee, batch fee, annual fee,

contract fee and cancellation fee makes it a popular choice.

Bank payment gateways in India

Banks also provide online banking gateways in India for their customers. A lot of people may trust this payment

gateways in Indiaover third part gateways . This may be the case because, third party gateways are owned by

private companies. Whereas bank payment gateways are owned by the banks, where they already have an

account. The bank payment gateways are not very customer friendly. You cannot use them as flexibly as you can

use the third party gateways. For example you cannot go to a shop an scan the qr code for UPI transaction and

use your bank payment gateway. This the third party gateway are more popular.

Payment gateways and ecommerce

Payment gateways are typically used in e-commerce, but due to the ease of transitioning from cash to virtual

currency and online wallets, a growing number of brick-and-mortar stores have adopted them. Payment

gateways facilitate online credit card transaction processing and provide a variety of security and fraud

prevention features to protect you and your customers. Redirect gateways are useful for small to medium-sized

online business owners who can benefit from the security and simplicity of a major online payment platform

such as PayPal.

Payment gateways provides payment processing services to e-commerce vendors, auction sites, and other

commercial organizations around the world, and accepts credit cards including Amex and Visa. Authorize.net

allows you to accept payments through a variety of processors, which in turn enables retailers to accept

payments from PayPal, Apple, and most major credit cards. These services allow retailers to accept payments

for some 383 million iPhones worldwide, with an estimated 43 percent of iPhone owners using Apple Pay

Authorize.net payments are accepted by the majority of popular e-commerce platforms, including X-Cart,

Magento, and Volusion. Authorize.Net allows you to set up payment processing directly, but the company is

best known for its feature-rich gateway that can integrate with other merchant account providers.

 The best way to use Authorize.net (by Visa) is to have a merchant account, in which case the plans begin with

the Payment Gateway Only option, which has no setup fees, monthly gateway fees, or transaction fees.

As well as a daily rate per lot Authorize.net has been in business since 1996 and now processes over a billion

transactions per year.

Payment Gateways and their pricing

Payment gateway pricing is usually based on the type of transactions the business is doing (online or in person)

and even commercial sales, revenue consistency, transaction frequency, and markets served. Payment gateways

and merchant accounts charge a variety of fees, which may include monthly fees, flat transaction fees, variable

fees based on a percentage of the amount, and additional fees for things like chargebacks, international card

payments, etc.

While some payment gateway providers charge static fees for domestic and international trade, be aware that

services like Amazon Pay charge more for “cross-border” transactions.

Other than payments what else are payment gateways capable of?

Payment gateways can also process direct transactions using alternative payment methods, including ACH

payments, bank-issued debit cards, or even cryptocurrencies. Typically, payment gateways are used in e-

commerce, although a growing number of brick-and-mortar stores have adopted them due to the ease of

transitioning from cash to virtual currency and online wallets.

Payment gateways perform the primary function of facilitating online credit card transaction processing and

offer a range of security and fraud prevention features that protect you and your customers. Redirect gateways

are handy for small to medium sized online business owners who can simply take advantage of the security and

simplicity of a major online payment platform like PayPal.

easy and safe payment gateway solutions

Half of all transactions in our daily lives are processed through online payment gateways. From purchasing

movie tickets to purchasing a bag of chips. Paying online is thought to be more convenient than carrying cash.

People these days rely heavily on online payment for their daily needs. While cash payments are considered

inconvenient, issues such as looking for change and avoiding a damaged bill make cash payments unappealing to

the general public.

While online payment through payment gateways may appear to be more convenient. They can also be risky

because you provide your bank information to the payment gateway, which can easily be misused. Through this

article we will try to understand the mechanics of online payment gateways and also how to ensure safe online

payment.

How do payment gateways work?

A payment gateway is a service that authorises and processes debit/credit card or PayPal payments for both

online merchants and traditional brick-and-mortar businesses. Hosted payment gateways enable online

merchants to process credit cards in an efficient and secure manner. Payment gateways encrypt customer

credit card information and provide a safe and secure method of processing online transactions. Payment

gateways are systems that securely transmit digital credit card information to the merchant, allowing them to

verify and authorise the transaction.

They facilitates a payment transaction by transmitting data between a payment portal (such as a website,

mobile phone, or interactive voice response service) and an external processor or acquiring bank. Finally,

payment gateways allow communication to take place between your website or physical store, the payment

processor, and the bank that issued the credit card used to make the purchase (or PayPal if the PayPal payment method is being used).

A payment gateway is a merchant service offered by an e-commerce application service provider that enables

the processing of direct credit card payments for electronic businesses, online stores, brick-and-mortar, or

traditional brick-and-mortar. It is a tool that businesses use to verify their customers’ credit card information,

making it essential for offline or online businesses that accept credit/debit card payments.

Lets looks at solutions, to ensure safe payment online through online payment gateways.

  1. Do your research

Before selecting an online payment gateway for your payments and transactions, do extensive research on

payment gateways. Go online and look for payment gateway reviews. Aside from that, look for people who have

previously used the relevant online payment gateway. Requesting such reviews may expose you to the reality of

the payment gateway. It will be easier for you to determine whether or not it is a scam.

  • Use UPI

UPI is an abbreviation for Unified Payment Interface. It was designed to make payments and

transactions simple and quick.

Using a UPI password for your payments can help ensure the security of your payments and transactions.

By using UPI, you can avoid having to share sensitive bank or personal information for transactions.

Simply enter your UPI password to ensure a secure payment.

You do not need to share or collect your account number, CVV, or ifsc code when using UPI.

UPI can also be used to receive funds by simply sharing your UPI id. As a result, you do not need to share any

banking information with your customers. You can also easily transfer money from your own account to

another bank account using UPI.

It is very simple to generate a UPI Id; you can do so using any third-party gateway app. To begin, you must

create an account in the app and then link your credit or debit card to it. Following that, you must enter the

phone number associated with the bank account. On the app, look for the option to create a UPI id and create it

in a matter of minutes

  • Encrypt your data

To encrypt data for secure payment, the protocols Secure Sockets Layer (SSL) and Transport Layer Security

(TLS) are used. They function by assisting customers and merchants in authenticating each other.

After the customer and merchant have been identified and authenticated, their communication is encrypted.

SSL and TSL are in charge of encrypting data. This encryption ensures that the payment goes through smoothly

and securely. Neither party openly shares any sensitive information.

It is very easy to use SSL and TSL.You can use them by enabling them on your Microsoft internet Explorer or

your phone. You can download an SSL certificate on your phone , that will enable SSL on your device.

  • Usetokenisation

By tokenizing your credit card, you are ensuring that no merchant, who you engage with on any online payment

gateway, can store your information. By tokenizing your credit or debit card, you are replacing sensitive

information such as account number, cvv etc with a random token.

A token is a numerical code, given to sensitive credit/debit card details to ensure their safety.

Every token is unique, given to the token requester.

Tokenization works when a customer initiates a payment to the merchant. The merchant transfers the card

information to the token requester for a token.  The token requester communicates to the card network that

provides the token . The  token is then forwarded to the payment aggregator who makes the online payment come to fruition.

  • Use strong passwords

Cyber criminals often use easy to access data to figure out passwords, for UPI accounts.

Easily accessible data such as birthdays , name of children, your name etc.

Thus your passwords must not be very generic. Use passwords that hardly make any sense, use alphabets,

numbers and various signs to create a strong reliable password for your online payment gateways accounts.

You might feel like you may foget such passwords, an easy way to keep the passwords is to note them down.

Note them down in a personal diary without any mention of what they are. Then all you have to remember is

where you noted your passwords.

These are a few easy and secure ways, through which you can ensure, your online payments, are secure.

These easy tricks for your online payment gateways safety are small steps, towards ensuring that your hard

earned money doesn’t go to waste, or is enjoyed by someone else. Other than these always make sure you are

extremely alert while you use online payment gateways.

To learn more about payment gateway in India Please click here

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