How do online payment gateways in India charge? www.deekpay.com

by combiningPayment GatewayCosts are integrated into the corporate website or application, accepting theonline paymentIt will become easier. Payment gateways also help in transaction management to keep operations running smoothly and provide fast refunds and real-time bank settlement services. Therefore, businesses can consider payment gateway fees as the cost of providing all these services.

Through the connectionPayment Processor(a service that collects card fees) and merchant account providers (companies that provide merchant accounts), payment gateways enable merchants to accept credit card payments (a service that provides a business with a payment system). A gateway is a service that processes credit cards online through an e-commerce website or in person through a credit card terminal.payment system. They usually charge a fee and allow businesses to accept credit cards online or in person.

Recommended Reading:What is a payment processor?

What payment gateway fees?

When consumers purchase goods or services online, they must use a credit card, debit card, PayPal account, or other payment method. To accept these types of payments, the company selling the product or service must pay a fee for each transaction. This is where payment gateway fees come into play. It is usually calculated as a percentage of the transaction amount. It varies depending on the level of risk involved in the payment transaction and the payment method chosen by the customer.

Fees incurred by a business owner to support online payment processing through a payment gateway selected on their website or app are in theIndiaKnown as a payment gateway fee. It is usually calculated as a percentage of the value of the transaction and varies according to the type of payment method used by the customer and the risk level of the transaction.

In other words, the payment gateway fee is the fee charged for providing all of these services as well as allowing a business's customers to make payments across multiple platforms.

Factors affecting payment gateway fees

Payment gateway fees help service providers cover a variety of costs, including operations, software and payment security. The fees demanded by various payment supporters are not arbitrary figures. Several variables affect them, including the interchange rate, which has been linked to the surge in credit card transactions in India.

According to the data, India December 2020, credit cards were used for more than 500,000 ATM transactions and 174 million POS transactions. Rates and payment gateway fees mean that credit card companies such as VISA and Mastercard charge the receiving bank a fee for each credit card payment. The rate covers the issuing bank's transaction processing costs and efforts to reduce the likelihood of fraudulent transactions. The interchange rate depends on the type of card used for the transaction, the risk associated with the affiliate, and the payment method used (online or POS).

Specific factors include:

Merchant Discount Rate (MDR)

Merchant Discount Rate (MDR) is a percentage charged by the payment service provider when a business accepts online payment methods or debit and credit cards.The MDR percentage is defined before the merchant agrees to set up and use any services, so fees are assessed on a per transaction basis.

MDRs include bank fees, interchange rates, chargeback fees, point-of-sale fees, and assessments charged to customers and merchants using digital payments.

interchange rate

Interchange rates are the fees that credit card companies such as VISA, Mastercard and Discover charge the receiving bank for each payment received on a credit card transaction.

The rate includes the transaction processing costs incurred by the issuing bank and the investment they make to minimise the risk of fraudulent transactions. A merchant's interchange rate is also affected by the type of card, the amount of risk associated with their business, and how they accept payments (card or online).

Merchant account provider fees

Linking a merchant account to a credit card network is necessary to accept online credit card payments. A merchant account allows a business to accept online credit card payments, and the provider regularly deposits the amount received into the business's bank account.

Depending on the volume of transactions and type of business, merchant account providers may charge a small fee in addition to the interchange fee. There may be monthly maintenance fees and additional fees for disputed transactions.

Payment Security

Depending on how the customer uses the payment gateway, whether it is an in-store transaction, an online transaction, a phone transaction, etc., the customer is also charged different fees. Each type of transaction has a different risk level.

For example, there is less risk and expense in receiving payments through card machines in offline shops than in online transactions, which are highly vulnerable to cyberattacks.

Components of payment gateway fees

The interchange rate is the amount that credit card issuers such as Visa and Mastercard charge the receiving bank for each credit card payment, which determines the payment gateway fee. In addition to interchange rates, merchant account providers charge payment security fees and merchant account fees, which vary depending on the type of business and the total amount of the transaction. All of these elements make up the many components of the payment gateway fee.

Payment of gateway set-up fees

The Payment Gateway Setup Fee is a one-time transaction fee assessed at the time the payment gateway is connected. This fee is usually charged when a merchant account is set up.

Annual maintenance fee

The Annual Maintenance Fee is a recurring fee paid annually to the Payment Gateway Provider to cover operating expenses and to maintain software, security and payment technology. This may also be a monthly fee.

Transaction Discount Rate

The Transaction Discount Rate (TDR) or Merchant Discount Rate (MDR) is the price of the transaction processing fee charged by the payment gateway to its bank account. It is usually a pre-determined percentage fee based on the customer's payment method, e.g. 2% tax per transaction. Payment gateways may charge higher fees for overseas transactions.

Integration costs

The fees paid by businesses to payment gateways for integrating the payment gateway into a website or application are called integration fees. Different payment gateways charge different fees.

Why should I consider paying for a gateway?

Payment gateway fees are determined by several factors, including the types of transactions executed, the frequency of transactions, the type of market, and the firm's total revenue.

Businesses can make an informed comparison by knowing the payment gateway fees charged by different service providers. These fees should be considered along with other factors such as the number of payment sources, supported models, payment security, success rates and other benefits.

How much do you charge for Paytm payment gateway business?

Paytm is a popular online payment tool in India that allows businesses to use the Paytm payment gateway to collect payments from their customers online through a website or mobile app.

Recommended Reading:Paytm, India's payment gateway

The Paytm payment gateway has a variety of features including:

Simple integration. Provides multi-functional interface API. Complies with PCI-DSS. Over 250 million saved cards support high success rates. Immediate refunds available. International payments are accepted.

Details of Paytm payment gateway with lowest charges for SMEs are given below:

Type Merchant Discount Rate UPI - Standard 0%UPI Payment Gateway Fee - Rs. 5 per authorisation for subscription Credit Card 1.99%Rupay - 0% Debit Cards MasterCard and VISA - 0.4% for transaction amount less than 0.4% for transaction amount of ₹2,000; 0.9% for transaction amount of more than ₹2,000 Paytm Wallet 1.99% Internet Banking 1.99% Payment Gateway 2.8%

Start by reviewing the features of the available payment gateways and then match them to your company's requirements. Consider all aspects of payment gateway options before making a final decision.

concluding remarks

For its website or mobile app, the payment gateway fee is the cost that a merchant must incur to accept online payments through its chosen payment gateway. In most cases, it is calculated as a percentage of the total purchase price. It may vary depending on the customer's payment method, the value of the transaction and the level of risk involved in the transaction.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.