Atul
01-25-2008, 11:15 AM
Broadly, there are two ways of payments collection systems:
a. Web Payment Systems
b. Merchant Account/Payment gateway
For Web based payment system, after checkout, customer is routed to providers website to enter credit card details. Merchant do not have any access of customers credit card details. Merchant has to login to providers website to access his account and see the payments made. Here Merchant can accept or reject any payment after verifying payment (fraud check etc.). In some cases, when Merchant has billing system for automated credit, providers system sends payment authorization acknowledgement. On receiving this payment acknolowdegemnt, billing software credits payment in customer billing account with the merchant. Currently CCAvenue, Transecute are some webbased providers in India.
Merchant Account/Payment gateways are provided by Banks or their processors. Merchant Account is a Bank Account to accept direct deposits from Visa, MasterCard, American Express, Discover etc. Payment Gateway is a software which connects Merchant shopping cart with the bank for credit card authorizations. Currently UTI (Now Axis Bank), ICICI Payseal, HDFC, CitiBank, American Express provide such Payment Gateways in India.
In case of Merchant Account/Payment gateway payments, customer can directly enters credit card at merchant site or in some cases taken to bank site. After payment authorization, payment authorize or not authorize message it passed to merchant systems, in case of authorize, payment gets credited in merchant billing systems.
After fraud check, merchant ship product or services.
Both have their advantage and disadvantages. Indian Bank systems take considerable time to integrate. In case of US Merchant Account, some billing system/shopping cart comes pre-configured with many payment gateways, integrating such system takes less than an hour. Generally fees are quite low compared with what Indian banks charges.
Subscription based services are getting popularity in India as well. These requires variable amount payments generally on monthly basis. In this type of system, customer credit card is stored with merchant. Whenever payment is due, merchant payment gateways connects with the bank and take authorization. Credit Cards are stored following Credit Card Industry Standards.
When Microsoft and other business pushing for selling software as a service and many different services from education to IT services are being sold on monthly subscription model, our banks are losing this new business. No one in the Indian banks wants to learn this concept and be a leader.
For merchant it is impossible to manually handle thousands or lakhs of monthly subscription payments, only alternative left to them is US Merchant Accounts/Payment Gateways.
a. Web Payment Systems
b. Merchant Account/Payment gateway
For Web based payment system, after checkout, customer is routed to providers website to enter credit card details. Merchant do not have any access of customers credit card details. Merchant has to login to providers website to access his account and see the payments made. Here Merchant can accept or reject any payment after verifying payment (fraud check etc.). In some cases, when Merchant has billing system for automated credit, providers system sends payment authorization acknowledgement. On receiving this payment acknolowdegemnt, billing software credits payment in customer billing account with the merchant. Currently CCAvenue, Transecute are some webbased providers in India.
Merchant Account/Payment gateways are provided by Banks or their processors. Merchant Account is a Bank Account to accept direct deposits from Visa, MasterCard, American Express, Discover etc. Payment Gateway is a software which connects Merchant shopping cart with the bank for credit card authorizations. Currently UTI (Now Axis Bank), ICICI Payseal, HDFC, CitiBank, American Express provide such Payment Gateways in India.
In case of Merchant Account/Payment gateway payments, customer can directly enters credit card at merchant site or in some cases taken to bank site. After payment authorization, payment authorize or not authorize message it passed to merchant systems, in case of authorize, payment gets credited in merchant billing systems.
After fraud check, merchant ship product or services.
Both have their advantage and disadvantages. Indian Bank systems take considerable time to integrate. In case of US Merchant Account, some billing system/shopping cart comes pre-configured with many payment gateways, integrating such system takes less than an hour. Generally fees are quite low compared with what Indian banks charges.
Subscription based services are getting popularity in India as well. These requires variable amount payments generally on monthly basis. In this type of system, customer credit card is stored with merchant. Whenever payment is due, merchant payment gateways connects with the bank and take authorization. Credit Cards are stored following Credit Card Industry Standards.
When Microsoft and other business pushing for selling software as a service and many different services from education to IT services are being sold on monthly subscription model, our banks are losing this new business. No one in the Indian banks wants to learn this concept and be a leader.
For merchant it is impossible to manually handle thousands or lakhs of monthly subscription payments, only alternative left to them is US Merchant Accounts/Payment Gateways.