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Old 7th July 2020, 19:04   #1
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Default Advice on payment gateways

I didn't come across any discussion on the features/pricing/comparison of various payment gateways available in India, so creating a new discussion thread.

E-commerce has become an essential in the entire range of goods and/or services and hence payment gateway assumes much importance.

I was looking at various companies offering payment gateways in India, though the features and pricing part is clearly provided in each of the websites, I was not able to find a proper comparison (practical experiences, not the theoretical comparison of the features).

So here i am requesting BHPians to post their experiences in using the payment gateway, from the seller point of view and what are the critical things to consider while choosing the right payment gateway and easy to miss conditions/issues.

From what I have looked, there are more than a couple of options, Razorpay, CCavenue, PayU, PayTM, Cashfree, Paypal, etc etc mostly the transaction fees ranging from 1.75% to 2+% and some of them additionally charge fixed per order fees.

I was looking at payment gateway and also payment links.

Thanks in advance for your inputs.

KK
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Old 8th July 2020, 08:38   #2
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Default re: Advice on payment gateways

Quote:
Originally Posted by KK_HakunaMatata View Post
I was looking at various companies offering payment gateways in India, though the features and pricing part is clearly provided in each of the websites, I was not able to find a proper comparison (practical experiences, not the theoretical comparison of the features).
Start with Paypal. It's the most easiest to setup. It even recognises accounts in banks that use backend of larger banks. Further you can use it in WooCommerce as well. Accepts all cards. All balance in PayPal account is transferred to your bank account at midnight. Takes T+2 days for funds to receive. Good, honest service provider with excellent support.

Fees are on the higher side 2.5%+ Rs. 3 (got extra) per transaction, but you can easily absorb this into you cost. No upfront / maintenance costs and has a built in invoice and estimate system.

Once you get a good volume going, you can shift to razorpay - again an online portal that doesn't charge upfront fees but starts at 2% + gst. They will negotiate rates with you based on volume.

Don't bother with anything else like Payswiff (cumbersome backend), CCavenue (unless you have massive volume), PayTM (terrible overall), etc.

EDIT - Paypal has payment link also + buyer's support incase things go bad so higher confidence level when you are just starting out. Most times Paypal will pay return shipping if buyer has to return item. Easy to refund money also. Mentioned this as there is a high chance you will face am unruly buyer and have to refund him (1 out of 100). Also buyer's don't need to make a Paypal account to pay. They can just input card details and go. Paypal also insists on phone number, email and proper address. So you get data capture as well (useful in shipping).

Last edited by blackwasp : 8th July 2020 at 08:50.
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Old 8th July 2020, 09:03   #3
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Default re: Advice on payment gateways

Any suggestions on UPI Payment gateway?

Say, we have a business account with ICICI Bank but they charge high and setup is little cumbersome. Even phone number registration is a task until now. We have some walk-in at our warehouses who now want to pay via upi, what can be other options?

Last edited by Turbanator : 8th July 2020 at 09:07.
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Old 8th July 2020, 09:08   #4
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Default re: Advice on payment gateways

Quote:
Originally Posted by KK_HakunaMatata View Post
I was looking at payment gateway and also payment links.
We are using Shopify and both razor pay and cash free are working very well. The primary reason for cash free is that it's got a paytm logo which satisfies a lot of people! Otherwise razor pay is excellent in collections and settlements and individual payment links.

Quote:
Originally Posted by Turbanator View Post
Any suggestions on UPI Payment gateway?
The above mentioned gateways accept payments on UPI. Charges are 2%.

I am going to try integrating the paytm gateway this week. Will keep you updated.
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Old 8th July 2020, 09:14   #5
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Originally Posted by avdhesh15 View Post
The above mentioned gateways accept payments on UPI. Charges are 2%.
Thanks but isn’t 2% very high? In old days this used to be the norm with credit cards but they used to give benefits to the users by way of rewards and technology was also expensive.

Maybe they negotiate with high business customers, for the past 3 months, we are paying EMI on one of our bmw cars via razor pay, I doubt BMW will be paying 2%.

Any cheaper alternate?
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Old 8th July 2020, 09:44   #6
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Default re: Advice on payment gateways

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Originally Posted by blackwasp View Post
Start with Paypal. It's the most easiest to setup. It even recognises accounts in banks that use backend of larger banks. Further you can use it in WooCommerce as well. Accepts all cards. All balance in PayPal account is transferred to your bank account at midnight. Takes T+2 days for funds to receive. Good, honest service provider with excellent support.
Thanks blackwasp.

I am a bit skeptical to go for paypal, (1) they charge at least 0.5% higher than the others, (2) they are overtly pro buyer in case of disputes, i would like more balanced process/procedure in case of disputes/charge backs.


Quote:
Originally Posted by Turbanator View Post
Any suggestions on UPI Payment gateway?

Say, we have a business account with ICICI Bank but they charge high and setup is little cumbersome. Even phone number registration is a task until now. We have some walk-in at our warehouses who now want to pay via upi, what can be other options?
CCavenue has 0% fees for UPI payments, but not very sure if they provide payment link facility.

https://dashboard.ccavenue.com/web/r...gateSchemeForm


Quote:
Originally Posted by avdhesh15 View Post
We are using Shopify and both razor pay and cash free are working very well. The primary reason for cash free is that it's got a paytm logo which satisfies a lot of people! Otherwise razor pay is excellent in collections and settlements and individual payment links.


The above mentioned gateways accept payments on UPI. Charges are 2%.

I am going to try integrating the paytm gateway this week. Will keep you updated.
Thanks avdhesh15.

How's razorpay on settlement side, are they prompt in transferring funds in T+2 days. Moreover how is the customer support and dispute/charge back handling mechanism.

KK
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Old 8th July 2020, 10:00   #7
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Default re: Advice on payment gateways

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Originally Posted by Turbanator View Post
Any suggestions on UPI Payment gateway?
Two ways to go about it - open a new current account exclusively for UPI transactions. You can use IDFC, HDFC, Axis (based on reviews from friends with UPI integration). Reason for a new account is upi payments reconciliation will be a manual process so keeping this account separate would be better.

Or, get use a gateway like Razorpay.

Quote:
Originally Posted by Turbanator View Post
Thanks but isn’t 2% very high?
UPI upto Rs. 2000 should be free. Post that they charge. One of the reasons is less headache to manage. Imaging getting 100+ UPI transactions of 100-200 bucks and verifying it manually. Thats why gateways charge money even for upi. They will authenticate each user and deposit a cumulative amount in your account at the end of the day. Also larger transactions = negotiable rate. A large company that I know has got a flat deal of 1%+GST on all transactions off RazorPay.

Quote:
Originally Posted by KK_HakunaMatata View Post
Thanks blackwasp.

I am a bit skeptical to go for paypal, (1) they charge at least 0.5% higher than the others, (2) they are overtly pro buyer in case of disputes, i would like more balanced process/procedure in case of disputes/charge backs.
You are right. Thats why I said start off with Paypal and then move on to Razerpay as you increase business. Initially the Paypal logo on your site would give much better confidence to buyers. Despite not being much popular in India, even Tier 2/3 Chaps will know what is Paypal vs CCavenue, Razorpay etc. This is the advantage. Paypal also negotiates rates, but the only few people I know that use PayPal for higher volume ship internationally (payments in USD). So it mayn't be the best option for domestic usage.

Quote:
How's razorpay on settlement side, are they prompt in transferring funds in T+2 days. Moreover how is the customer support and dispute/charge back handling mechanism.
Very prompt. Even in these covid times, emails are answered promptly and calls have 10-15 wait times depending on the time of the day.

Last edited by blackwasp : 8th July 2020 at 10:03.
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Old 8th July 2020, 10:39   #8
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Default re: Advice on payment gateways

The biggest grouse of these payment gateway is refund incase of transaction failure. Some even take upto 10 days to refund.
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Old 8th July 2020, 18:59   #9
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Default Re: Advice on payment gateways

UPI is the most cost effective option - with no fees whatsoever if you simply print your QR code with no intermediary. Payers also benefit in terms of cashbacks from the likes of Google Pay. You can print a QR code for the account using any UPI app. It accepts payments using any UPI app. If it is a corporate account operated with multiple signatures bank can still issue a VPA for receiving payments. Alternatively you can form your QR code using just account number and IFSC code.
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Old 8th July 2020, 22:23   #10
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Default Re: Advice on payment gateways

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Originally Posted by Turbanator View Post
Any cheaper alternate?
Jugaad which is working well for me: I have opened a Google Pay for Business to which I have linked my current account. Currently there are zero charges charged by Google. If anyone scans or sends by UPI, it is instantly in my bank account. Only catch is that it is currently restricted to 10 lacs every month (more than enough for me, but unsure of your use case).

Quote:
Originally Posted by KK_HakunaMatata View Post
How's razorpay on settlement side, are they prompt in transferring funds in T+2 days. Moreover how is the customer support and dispute/charge back handling mechanism.
Till now settlements have been very smooth and automated. Never had an issue on settlements and customer support till date. Resolution of disputes also has been fairly smooth.
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Old 9th July 2020, 08:01   #11
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Default Re: Advice on payment gateways

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Originally Posted by avdhesh15 View Post
I have opened a Google Pay for Business to which I have linked my current account. Currently there are zero charges charged by Google. If anyone scans or sends by UPI, it is instantly in my bank account. Only catch is that it is currently restricted to 10 lacs every month (more than enough for me,.
Thanks Avdhesh, I could setup the account in less than 10 minutes. Logged in to the google account using same credentials that we have for our google business listings and the account was setup immediately. One needs a clear copy of PAN and rest everything is automated. Google does a test transfer of Rs 1 to your account and if everything matches you are done. I tried a test with Rs 100 and it was credited in full.

There are some restrictions currently (I don’t know what- just get a message) and I need to make a video call with copy of PAN.

So a great option for small businesses or individuals. A small catch, currently setup seems to be possible only via android phone.
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Old 9th July 2020, 09:10   #12
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Default Re: Advice on payment gateways

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The biggest grouse of these payment gateway is refund incase of transaction failure. Some even take upto 10 days to refund.
A disputed transaction of mine to Airtel from Google Pay took ~60 days, without any co-operation from either Airtel or G-pay.
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Old 9th July 2020, 11:21   #13
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A disputed transaction of mine to Airtel from Google Pay took ~60 days, without any co-operation from either Airtel or G-pay.
This to me is a fraud. The gateway happily sits with your money for "x" number of days while enjoying possibility of interest benefits. There does not seem to be a rule and each payment gateway have happily set their own timelines. I don't know if RBI(Or any other governing body) has any rules defined, if not definitely something to look into.
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Old 9th July 2020, 12:11   #14
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Default Re: Advice on payment gateways

Not really a payment gateway question, but does any Indian bank support 2FA using TOTP? Or any method of OTP which does not involve sending it over SMS or EMail. (SBI I think has a challenge response option to SMS based OTP).

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Old 9th July 2020, 17:59   #15
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Originally Posted by Turbanator View Post

There are some restrictions currently (I donít know what- just get a message) and I need to make a video call with copy of PAN.
Completed the video call and now I can see a monthly 10 Lac limit. It's more than enough for us even for a Year due to the limited nature of such transactions.

Advice on payment gateways-whatsapp-image-20200709-5.55.01-pm.jpeg

Quote:
Originally Posted by Sheel View Post
A disputed transaction of mine to Airtel from Google Pay took ~60 days, without any co-operation from either Airtel or G-pay.
It would have got stuck up somewhere, during reconciliation this should have got sorted but must be some unique case. Unlike credit cards, I don't see a resolution mechanism. I hope, it's not required, either way as a merchant, as long as the funds are not credited, we don't release the stuff. But Yes, can be a pain for the customer if his account is debited but the merchant does not get.
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