After the Indian Government introduced the Digital India movement in 2015, they have started installing systems to accept online payments. It has reduced the hassles of the public and given them a sen...
After the Indian Government introduced the Digital India movement in 2015, they have started installing systems to accept online payments. It has reduced the hassles of the public and given them a sense of relief. All their transfers are handled digitally through websites and apps.
A merchant can now receive all the customers’ payments for the products and services delivered through an online payment gateway. These systems are integral for businesses and brands to differentiate their products and create customer loyalty. It has also allowed merchants running online firms to no longer establish direct relations with acquiring banks.
The following are some points to consider before creating the account:
The payment mode: A larger pool of payment options means customers can get various choices to check out and purchase comfortably. Many payment gateways are accepted all over India, such as debit, credit, and prepaid cards. Most of the leading banks and card networks have connections, including MasterCard, Visa, American Express, and Rupay.
Merchants can also use other options for receiving payments such as net banking, Unified Payments Interface (UPI), digital wallets (PayTM, Paypal, Freecharge, etc.) and Pay Later Cardless EMI. Customers take credit on their payments for services.
Swift onboarding experience: Many payment gateway platforms promise onboarding within a few minutes but opening a fully functional account could easily take over two days. There are various formalities attached with a payment gateway that requires verification before activation. To ensure not to have poor onboarding experience, confirm these details first-hand.
International payment support: For merchants having customers outside India or Indians using international cards, it is vital to support global payments. Most of the banks and payment gateways ask for a security deposit and a fee. Customers outside India pay in their local currency to know the exact amount and use PayPal to support multiple currencies with easy conversions.
Payment settlement cycles: Settlement duration is the time taken by the buyer’s account to debit funds and credit to the merchant account. The seller receives the funds after the customer enters the payment details in the gateway. It encrypts the data and securely sends it to the bank for authentication. The fund flows from the bank account to the seller’s account through the payment gateway.
Arjit Chalmela is an aspiring student in the field of finance. He spends his free time reviewing the latest apps introduced into the market. He explains how to open a merchant account
