Everything about the Payment Gateways in India

For online selling or for collecting online payments, the payment gateway in India is the most useful facility to use and to render the same to the customers.

An eCommerce website or mobile application must have an integrated payment gateway.

Due to the innovative products that the payment gateway provides, the payment gateway is the best option to accept online payments for your offline sales. Thus, payment gateways are useful for accepting online payments for both online as well as offline sellers.

Here’s the complete guide of the payment gateways in India.

Meaning of the Payment Gateway

Payment Gateway is a medium between the customer’s bank (issuing bank) and the acquiring bank to send and receive the requests and responses back and forth.

It receives the responses related to the authentication and authorization and responds with the eventual success or failure of the transaction.

Thus, a payment gateway sends the authorization request and enables the payment transfer.

A payment gateway is the last step with the payment checkout when your customers can make the payment and finalize the purchase.

You can accept the payments through multiple payment modes supported by the payment gateways in India that you choose such as wallets, net banking, credit cards, debit cards, UPI, QR code, and EMI.

Benefits of a payment gateway

Payment gateway is not only useful but a need in today’s time when the world trading is getting digitalized. It is an important link between the customers and the merchant.

The payment gateway following the best security standards provides a secure solution to accept online payments from your customers.

The next useful point is the availability of multiple payment modes, the customers would have their preferred payment option to make the payment.

All types of businesses such as startups, small businesses, medium enterprises, and large corporations can benefit from using a payment gateway. It can enable business growth due to its omnipresent nature.

It helps with fraud prevention and detection through its procedures such as screening, KYC, transaction monitoring, risk analysis, etc.

The merchant dashboard tool would help you with tracking the transactions, analytics, graphical representation, settlement records, refunds, etc.

The most important feature is the Payment Link. This is how you can accept payments through a payment gateway even without a website or mobile application. It can be your social commerce, offline store, freelancing, etc; payment links would enable you to accept secure payments with multiple payment modes.

Read in detail about 7 Points of Importance of Online Payment Gateway in Indian Businesses

The working of a payment gateway

Here’s the step-wise process to the payment flow through a payment gateway when a transaction is initiated on a website or payment link through it.

The customer selects and adds the products to the cart and proceeds to the payment checkout to pay. He enters his basic details and selects the payment method.
As per the payment method selected, he would proceed further with the respective payment options. For example, when he selects the card payment, he would enter the card details such as the card number, CVV, cardholder name, and expiry date. After that, he would complete the authentication with the OTP/Password.
The card information will be transmitted to the card networks via payment processors via payment gateway securely.
It would reach the for authorization to the customer’s bank. The bank would check funds availability and authorizes the transaction.
The transaction status (success or failed) moves up in the reverse order and is displayed to the customer on screen through the payment gateway.
The funds would be transferred to the acquiring bank and then settled in the merchant’s bank account as per the settlement cycle.

Read here the Parties involved in the transaction

Using a payment gateway in India

To start using a payment gateway in India, you need to have a legal and unprohibited business. The merchant needs to follow a simple onboarding and verification process.

Taking the example of PayKun you need to register with your KYC and after its verification, your account will be activated.

For the registration guide, connect with our Sales Team at [email protected]

Functions of a Payment Gateway

The working of a payment gateway would definitely have given some idea of what it does. Here are some of the functions listed for clarity.

Payment processing and transmission of the records
Transaction and data security
Fraud prevention and restrictions for the merchant as per the risk
Switch configuration managing for the merchants
Communication with the payment switch for the validation of the transaction
Communication with the card networks and checking the 3D enrollment of the card
Being the responsive payment partner through the best customer support
Processing the settlements

Choosing the right payment gateway in India

It is essential that the payment gateway that you choose is right for your business. Here are the points to consider in choosing the payment gateway in India.

Pricing and other charges – Compare the pricing of different payment gateway, consider the other charges apart from the per-transaction rate (TDR) and choose the most affordable payment gateway with the best services.
Integration Assistance – Payment gateways need not be complex if their integration and technical support are easily available.
Security Compliances – Due to the prevailing breaches in online transactions, the payment gateway must have strong security measures as mentioned earlier.
Customer Support and Technical Support – This is another important service to look for in a payment gateway.
Smooth and Customised Checkout – Transaction success rate, speed of the checkout process, the requirement of the details, customization, etc must be checked for. You should test the demo for the same.
Payment Links – To accept the payments without a website or mobile app, you must look for easy payment links.

Other important features are the Merchant Dashboard Tool for analysis and records, Risk and fraud prevention measures, international services, etc.

Integration of a Payment gateway

You need to consider if your website or mobile application platform is supported by your chosen payment gateway. The ready integration kits and the technical documentation would help you with the integration.