A payment gateway offers the desired and vital link between the online seller (merchant), its client, the client’s online payment mode provider and the bank account of the online merchant. The online payment mode can be credit or debit cards or any other mode as chosen by the client. The payment gateway validates the online payment mode of the client, gathers the fund from any given bank/other account and then transfers those funds to the bank account of the merchant. If you are an online merchant, you need to know about the fee related with a payment gateway, that you will have to pay once you hire professional credit card payment processing services in India. Your payment gateway provider will also offer you a merchant account.
Merchant Account
An online business should have a merchant account in order to make transactions. Some payment gateways, like PayPal, do not require you to have an extra merchant account. They serve the purpose of merchant account by holding your funds in the online digital locker until you get them transferred to merchant bank account. This method does not suit those online sellers who do a number of daily transactions. As your customer has to land on an alien payment page, your online e-commerce has its continuity disrupted. The online merchant also has to make other efforts for getting payments realized into his/her own bank account, and the process of payment collection gets lengthy.
That is why a leading payment gateway provider in India provides an online seller with its own online merchant account. The merchant has to do mandatory paperwork as per RBI guidelines, and its merchant account gets active within 2 to 5 days.
The Costs Determinants
Various determinants govern what the cost of a payment gateway in India can be for your e-commerce.
Set-Up Fee
This one-time fee is paid when you sign-up for a payment gateway initially. The fee is non-recurrent in nature and is to be paid for the credit card payment processing services that you would avail.
Allied Monthly Fees
You will be required to pay a pre-designated sum of money or fee to the payment gateway provider that also provides you your own merchant account. If you enroll for more services, this fee may get higher. For instance, the leading payment service providers may offer you EMI or auto-billing service, so that a pre-designated sum is charged payment gateway providers also offer you a range of fraud, risk prevention, and managements services, and you may be required to pay more when you avail these.
Fee Per Transaction
This minuscule fee amount is charged by the payment gateway provider for every transaction your e-commerce processes.
