Payment System in INDIA (Part 1)
“The core of any e-commerce project where everyone wants cheaper price as well as good success rates”
In this post i want to describe what are the easy solution for startups and what all payment gateways available in INDIAN REGION for a good product.
In GO-MMT we do a lot of combinations and PG switching mechanism but this is now available with most of the strong PG aggregators in INDIA.
Will discuss about the options to chose from and what all DOs and DONT’s while dealing with PG integrations too.
Will also describe different channels like Credit/Debit/NetBanking/Wallets and Vault and 1 Click Payment Solutions in detail.
Disclaimer — This post is NOT for promotion purpose and details provided will be solely from writer’s experience and involvement with Payment Systems.
Lets First Understand Modus-Operandi of Payment Gateways
You might have seen the above flow several times and Everyone understand its the Payment Gateway responsibility to collect the money but it is NOT we’ll understand when we look into our choices of selection PGs and how we integrate with them. Lets understand the Payment Gateways first. Starting from the Categorization -
Categorization of Payment Gateways -
- Direct Payment Gateways
- Payment Gateway Aggregators
DIRECT PAYMENT GATEWAYS >
These are payment gateways mostly used by merchants to increases the success rates and are specific to take respective BANK’s cards or NetBanking with ease.
For eg. For Credit/Debit (VISA/MASTER/MAESTRO) Cards
HDFC Cards will work best with HDFC PG, ICICI Cards will work best with ICICI3DMOTO PG, AXIS Cards gives best with AXIS PG
For eg. For NETBANKING
HDFC Netbank works well with direct integration of HDFC PG, CitiBank Networking works well with direct integration of CITIBANK PG.
Note — This may not be correct for all the Bank’s PGs but above examples are based on success rates. They will accept any Bank’s VISA,MASTER and MAESTRO cards but the success rates might differ. Its always a pain to direct integrate so many Bank PGs that’s where next category plays the role.
PAYMENT GATEWAYS AGGREGATORS >
These are well known Payment Gateways (Parent) which internally selects Payment Gateways (Children) to complete the payment. This is like a Superset or you can call it Parent PG which knows which child PG will work best for Kotak VISA cards or which child PG will be good for HDFC MASTER cards. Mostly these Aggregators take the decision to select the child PG (configured by the merchant by sharing the child PG credentials) but sometime they offer good privilege to override their selection from merchants itself. In all they take the risk of directly or indirectly integrating with most of the Banks.
For eg. For Credit/Debit (VISA/MASTER/MAESTRO) Cards
PAYU, CCAVENUE, BILLDESK or CITRUS act as PG Aggregators and due to their vast collection of Child PGs and decision to choose them they perform best when flexisble (i.e. decision taken by them NOT by merchants)
Foe eg. For NETBANKING
PAYU, CCAVENUE, CITURS, BILLDESK
Since they are the aggregators it is best to choose them for Cards as well as NetBanking integration. But merchants need to have a backup always and a choice between
Seemless and non-Seemless integration of Payment Gateways
which will be my next POST to define the pros and cons of the integration style and how they work. Till then keep looking at the URL when you e-pay on your favourite e-commerce website.
