2. What is Payment Gateway?
A payment gateway is an e-commerce
application service provider service that
authorizes payments for e-businesses
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3. Payment Gateway
A payment gateway is an e-commerce
application service provider service that authorizes
credit card payments for e-businesses, online
retailers, bricks and clicks, or traditional brick and
mortar.
It is the equivalent of a physical point of sale
terminal located in most retail outlets.
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4. Bricks and clicks
Bricks and clicks is a jargon term for a business
model by which a company integrates both offline
(bricks) and online (clicks) presences, sometimes
with the third extra flips
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5. Brick and mortar
Brick and mortar in its simplest usage describes the
physical presence of a building(s) or other
structure.
The term brick-and-mortar business is often used to
refer to a company that possesses buildings,
production facilities, or store for operations
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6. Web services
A Web service is defined by the W3C as "a
software system designed to support interoperable
machine-to-machine interaction over a network”.
For accessing every web service we need an
API(Application Program Interface) key.
Web service is a platform independent.
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7. Payment Process
A payment process is a transaction of money
between the users and merchant (owner of the
product).
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9. Online Shopping Example
The Payment Gateway Workflow should be
inserted before the checkout.
After the confirm order page with the payment
gateway workflow be activated
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11. Steps Involved in a Payment
Gateway Transaction
Step 1 – Consumer visits a shopping website and selects
the goods or services and clicks on the “Buy” button. A
message is sent to the website regarding the
consumer’s desire to buy and make payment.
Step 2 - The Web store’s server, after receiving the
message from the buyer, adds its digital certificate to
identify the mall. This message is now called a “Digital
Order” and also includes the consumer’s IP address
and transaction amount. The Digital Order is now sent
to the Payment Gateway over a secure network.
Security is ensured by data encryption.
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12. Steps Involved in a Payment
Gateway Transaction
Step 3 - Based on the Digital Certificate, the
Payment Gateway authenticates the web store.
Step 4 - The Payment Gateway offers various
payment options on a screen to the buyer.
Step 5 - Buyer chooses the desired payment
option, which is transmitted via the secure link to
the Payment Gateway.
Step 6 - The Payment Gateway sends the payment
details to the acquiring bank (in case of card
transactions) or seller’s bank (as termed for other
instruments).
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13. Steps Involved in a Payment
Gateway Transaction
Step 7 - The acquiring bank sends the information to the
buyer’s issuing bank (in case of card transactions) or
buyer’s bank (as termed for other instruments) over a
secure link.
Step 8 - Based on the credit limit and the payment
instrument’s validity, the issuing bank either accepts or
rejects the transaction. The confirmation/rejection
message is transmitted to the Payment Gateway
through the acquiring bank.
Step 9 - The Payment Gateway then transmits digital
receipts to the shopping site as well as the buyer.
Step 10 – The web store can ship the goods/services to
the buyer.
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15. Types of Payment Gateways
PayPal (Global)
Authorize. Net (US)
VeriSign (Global)
Link point (US)
2Checkout (Global)
World Pay (Global)
Cyber Source (US)
Protx (UK)
EWay (AU)
Moneris (CA)
QuickBooks Merchant Services (US Only)
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16. Payment Gateways in India
Transecute Pvt. Ltd.
PaySeal (ICICI)
Eliteral Payment Gateway
Payment-Gateway-India.com
Team VII Payment Gateway
CitiBank
HDFC
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17. Gateway advantages
Gateways can provide many benefits, with its
main benefit being security.
when using a payment gateway, the credit card
information is sent directly to the bank for
verification and therefore no credit card details
are stored.
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18. Gateway advantages
Credit card validation and processing in real time
Less fraud
Money is normally deposited into your bank
account automatically
Reports and refunds normally allowed via browser
by gateway company
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19. Gateway Disadvantages
Every gateway company charges fees. Fees can
include some or all of the following:
Fixed fee per month
Percentage fee per amount spent
A fixed fee per transaction
In addition your own bank or the gateway's bank will
charge a merchant fee for the privilege of allowing
credit card purchases. This can range from 1-5% or
more.
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21. Payment Gateway Hardware
Requirements
External Windows Server
P4 w/ 2.1 GHZ processor minimum
5 GB of free disk space
1 GB of available memory
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22. Parties Involved
Product/service manufacturers
Banks – acquiring and issuing
Payment Gateway infrastructure providers
Providers of the software involved
Hardware and networking vendors
Maintenance personnel
Delivery infrastructure
Internet Service Providers
The Government
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23. Choose the payment gateway
that gives customers the full Thali
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25. The Hidden Costs in a Cheap PG
Bad risk management = monetary and
reputational loss
Limited payment options = you lose real customers
… monetary loss as well
Poor PG software and low end hardware and
people ware = downtime of PG = monetary loss
and lost customers
Bad, unresponsive, non reachable support staff at
PG partner = you get ulcers handling irate
customers and from suffering business loss.
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26. Ground Realities for a new
merchant
Over 50 payment options in India today … and
growing.
That many systems to integrate, manage,
reconcile accounts and manage processes.
There are huge challenges to running things
perfectly.
There is a clear need for a specialist to handle this.
How responsive is your PG partner to tackle these
challenges.
How well connected are they to the key
stakeholders in the ecosystem such as banks, card
companies, etc.
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