11. Why a Payment Gateway?
• When it comes to running online business, the most
important question is …
“How will my customer pay me?”
• If you don’t have an answer to that question, then
you may as well as pack up and go home.
• All the hard work of building your online enterprise
will be in vain…
12. So how to choose a good payment gateway?
1. Payment Options:
What payment options does the PG process?
13. “I accept just credit cards on my website and
that is good enough for me …”
“Sure …but be prepared to cater to a shrinking
customer base.”
Why ?
14. • Indians are uncomfortable about owing money!
• So `non-credit’ based payment options are popular
• Any safe method of debiting the bank account directly
is welcome … Debit Cards/ Net Banking etc
• New payment options like Cash Cards, Phone Payments
are growing exponentially.
So when the choice of payment options are in a state of
flux… which payment gateway to choose?
Simple … do what millions of Indians do …
15. Choose the payment gateway that gives
customers the full Thali!
It has something for everyone …
16. Choose the payment gateway that gives
customers the full Thali!
It has something for everyone …
17. Choose the payment gateway that gives
customers the full Thali!
A strong PG will provide the merchant with a wide array of
payment options so that no transaction is lost because the
customer doesn’t hold a suitable payment option.
18. What is Payment Gateway
A Payment Gateway is an e-commerce application service provider that authorizes
payments for e-business, online retailers etc.
The gateway itself is simply a secure online link between the merchant and the customer’s
bank. Sensitive information, such as credit card numbers, needs to be protected from
fraudulent parties.
Payment gateways encrypt the sensitive information such as credit card details to ensure
that the information passes securely between the customer and the merchant.
19. Steps Involved
Buyer initiates the purchase.
Site Collects the buyer Info.
Buyer is sent to Payment Gateway.
Payment Gateway Collects the Credit Card Info.
Payment Gateway handles the transaction.
Payment Gateway verifies the purchase.
20. PRELIMINARIES
OnlineCustomer: Entity who browses the e-commerce website and who will buy he products by
making timely payments.
Merchant:A merchant is the seller who will receive the payments made by the customer.
Banks: there are two types of banks
1. Client Bank : It holds the clients account and validates the customer.
2. Merchant Bank : It holds Merchants account and is responsible for management and fraud control
etc.
PaymentGateway : A payment gateway is connected to all the customers, merchants & banks
through internet and is responsible for speed, reliability and security of all transactions that take
place.
22. Categories of Payment Gateways:
There are mainly two categories of PaymentGateways :
1) Hosted PaymentGateways
2) Shared PaymentGateways
Hosted PaymentGateways:
• Hosted PaymentGateways are those that direct your user away from your
ecommerce website.
• While making payments, the customer is redirected to the real gateway page by
clicking the gateway link.This leaves merchants website for some time before
returning back.
• The benefit of these gateways is that you do not need a Merchant ID since no
confidential details are needed from your website. Examples here include PayPal,
WorldPay and Nochex.
23. Categories (cntd…)
Shared Payment Gateway:
• While making the payments, a customer is directed to the payment page
and not out of merchants website.
• Here, a Post form is used once one clicks on a payment link/button.
• The payment page is maintained securely by the payment gateway.
• After all details about credit card and other required fields are complete,
the user fully gets back to the main website.
• The main benefit is that one does not get away from your website thus fast
and easy to use. Example of a gateway is eWay.
24. Security
Is your money in safe hands?
• Buying stuff online is easy, saves time and money, however there’s a risk
involved.
• Each time we pay for something, we input our credit/debit card details to a
third party (other than our bank). And considering the virtuality
of online medium and the risks associated with it, there’s always a sense of
fear for online fraud.
• The e-commerce platforms and banks tend to maintain a robust framework
to securely carry out the transactions for the goods and services we pay for.
25. Security (cntd…)
Data Encryption:
• Data encryption is one of the main security method used in payment gateways.
• Once you enter your card details in the payment gateway, it gets encrypted by
using payment gateway’s public key and can only be decrypted by the payment
gateway’s private key.
• The gateway uses an algorithm which makes sure that no unauthorized party
can decrypt the encrypted data when being transmitted through the network.
• These algorithms usually follow symmetric (same key for encryption and
decryption) or asymmetric (different key for encryption and decryption)
cryptography to mask data so that unauthorised sources are unable to read or
intercept it.
27. Payment Gateway Options
PayPal is the granddaddy of payment gateways and helped to define online
transactions. It was founded in 1998 and has grown to be one of the best
and most popular payment gateways. It offers easy-to-use options to embed
a button on your site or redirect to PayPal completely for payment. It
features a rich API for more complex integrations.
CCAvenue
One of the largest payment gateways operating in Indian market. The
platform incorporates more than 100 payment options and collects funds in
over 27 different currencies.
EMVANTAGE
Another largely used payment gateway in the Indian market. It boasts of
very high transaction success
rates and offers users the choice of a wide variety of payment options like
credit cards, debit cards, net banking, etc. Moreover it also lets them use
prepaid cards like Rupay, etc.
28. Citrus
Citrus is the well known name behind the innovative Citrus pay app to
tackle everyday problem of Indian population ‘chutte nahin hai’. It
includes a range of tools like Turbo checkout, Citrus Cash, Citrus Cube,
etc. for end consumers to make their shopping experience more fun.
Atom
Atom has a client base of over 4500 companies and integrates more
than 100 payment options and has executed 15 million plus
transactions to date. The platform includes major credit cards services
including MasterCard, American Express, etc, 50+ Debit Cards options
and over 50 net banking options.
29. Amazon Pay is a unique option. It offers shoppers the ability to use their
existing Amazon accounts to pay you.
The flow goes like this:
The user clicks the “Amazon Pay” button
They log into their Amazon account
The user chooses an existing payment method stored on their account
They click to buy, and it’s all done
Amazon Pay opens up multiple channels for your business. Customers
can order items with voice, mobile, or social shopping. By using Amazon
Pay, you’ll make your shopping experience better for millions of Amazon
users.
30. Features of Payment
Gateways
Transaction & Network Security
Secure with latest security technologies like SSL
Fraud Screening features
Reduces risk of theft and loss
User friendlyAnd speedy in processing
Support for multiple forms of Payment
Time Saving
Ease of use
31. Disadvantages of Payment Gateways
Payment gateways highly depend on internet connectivity
Lack of Anonymity
Risk of being hacked
Fees
32. Say hello to my force multipliers
Built-in
Shopping
Cart
Collect
Invoice
Facility
Virtual
Terminal
SMS Order
Alert
Transaction
Failure
Collection
Auction
Collection
Feature
IVRS
Payments
Co-marketing
through Bank
Malls
P2P
Payments