PayKun

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 to 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.