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Selecting The Right Payment Gateway For Your Business


Whenever I get an enquiry regarding an ecommerce portal, I have to explain what a payment gateway is and most of the time I land up choosing one on behalf of my client.

As a developer it doesn’t make much difference to me what payment gateway my client selects, all I am concerned about is the format in which I need to send the request to the gateway and the format in which I get back the response/status message. For a business owner selecting the right gateway makes a lot of difference.

The aim of this post is to empower people who are planning to setup a payment gateway by providing them a comparative study of popular payment gateway options available in India.

I will not get into details about how a payment gateway works and what you should look for before selecting the correct gateway for your business. Rather I would suggest you to read the Your Story Report on Setting up e-commerce in India.

This post is purely a comparative study of gateways. Hopefully you will be able to select what is good for your business, based on this.

A broad categorization and comparison of the setup fees, transaction and other charges of different payment gateways options available in India:

Company Name One Time Setup Fee Transaction costs(Credit /Debit Cards) Transaction Cost (Net banking) Annual Maintenance Cost(AMC)
CCAvenue Rs. 7,500 - Rs. 40,000 3% - 7% 4% Rs. 1,200- Rs. 3,600
DirecPay Rs. 10,000 6% 6% Rs. 2,400
EBS Rs. 6,000- Rs. 3,000 3.25% - 6% 3.25% - 6% Rs. 2,400
ICICI payment gateway Rs. 30,000 3% -5% - Rs. 10,000
HDFC payment gateway Rs. 20,000 3% -10% - Rs. 10,000
Bill Junction Rs. 40,000 2.5% 2.5% Rs. 5,000

CCAvenue

Plans Set Up fees Annual Software Maintenance Cost TDR ***
MasterCard/
Visa/Diners/
Debit Cards/ATM cum Debit Cards
TDR ***
AMEX/JCB/
Cash Cards
/Mobile Payment
TDR ***
Net Banking
Economy Rs. 7,500/- Rs. 1,200/-* 7%* 7%* 4%*
Premium Rs. 25,000/-* Rs. 2,400/-* 5%* 5%* 4%*
Privilege Rs. 40,000/-* Rs. 3,600/-* 3%* 5%* 4%*

Terms & Conditions:

* Taxes as applicable will be levied on set up fees, ASMC and Transaction Discount Rate (TDR) charged by CCAvenue.
** Annual Software Maintenance Charge (ASMC) is charged on a per month basis payable in advance every year in April. Merchants signing on after April need not pay the full ASMC fee. The ASMC fee will be levied on pro-rata basis.
*** TDR = Transaction Discount Rate.

EBS

Plans Set Up fees TDR *** Annual Software Maintenance Cost
Starter Rs. 6,000/-* 6%* Rs. 2400/-
Regular Rs. 12,00/-* 5%* Rs. 2400/-
Silver Rs. 18,000/-* 4%* Rs. 2400/-
Gold Rs. 24,000/-* 3.75%* Rs. 2400/-
Platinum Rs. 30,000/-* 3.25%* Rs. 2400/-

Terms & Conditions:

*** TDR = Transaction Discount Rate

Service Tax as applicable (Currently 10.3%)
For Starters Package conditions apply

Transecute

Plans Set Up fees TDR Annual Software Maintenance Cost
One Plan

-

5%

-

Terms & Conditions:

  • Per Transaction Fees: FLAT 5% per Transaction
  • Supported Cards: Visa / Master
  • Application Processing Time: 2 Weeks
  • Service Taxes (Currently 10.3%) extra on all pricing.
  • Doesn’t support Net Banking

Direcpay

One Time Setup Fee Transaction costs(Credit /Debit Cards) Transaction Cost (Net banking) Annual Maintenance Cost(AMC) Credit Cards supported Banks Supported
Rs. 10,000 6% 6% Rs.2,400 Visa, Master Card HDFC, ICICI, Kotak, Yes Bank, UTI, IDBI, CBoP, Citibank etc.

Terms & Conditions:

Service Taxes (Currently 10.3%) extra on all pricing.

BillJunction

Particulars Amount (in Rs.)
System Integration Fee Rs.40000/- + Service Tax (ST)
All Net Banking Transactions 2.50% + ST
All Credit Card Transactions 2.50% + ST
All Cash Card Transactions 2.50% + ST
Annual Maintenance Fee (AMF) Rs.5000/-
Security Deposit- Refundable Rs.5000/-

Terms and Conditions:

  • System Integration Fee : 100% along with the Merchant application form & KYC
  • Transaction charges will be debited from the Transaction Amount on upfront basis.
  • Security Deposit: As approved by the bank
  • Any new bank that will be integrated with BillJunction will be added to the existing list.
  • Service Taxes (Currently 10.3%) extra on all pricing.

HDFC Bank

Particulars   Details  
Setup Fees  Rs. 20000 + Service Tax(one time non-refundable)
Payment Options All Master/VISA credit and debit cards and Net Banking
Per transaction fee 3-10% + Service Tax
Annual Maintenance Charges Rs. 10000/- (recurring yearly)
Payment (credit to current account with HDFC) T+1 working days

Terms and Conditions:

  • Fixed deposit could be applicable in case the company does not meet the requirement
  • Service Taxes (Currently 10.3%) extra on all pricing.

Information / Documents required to obtain a merchant account (can differ depending on gateway company/bank)

Sole Proprietor / Individual

  • Web site URL
  • Pan Card/Passport/ Form 60 (If Submitted in last 60 days)
  • Photo id – Passport/ Election Card/ Driving license
  • Sole Proprietor Letter
  • Certificate of incorporation or Certificate of Registration or Shop & Establishments Certificate or Sales Tax / Service Tax
  • Address Verification (Original Copy of Bank Statement/ Electricity Bill/ Landline phone Bill)
  • Bank Verification (On Letter head of Bank or Company verified by Bank with Contact details of bank branch)
  • Lease agreement or ownership deed for business premise / Ration Cards
  • List of Products & Services on Company Letterhead
  • Landline Phone Bill (Original Copy of Landline phone Bill)
  • Last 2 years income Tax Return
  • Last 6 months Bank Statement.
  • One Photograph.( of the Merchant )

Partnership

  • Web site URL
  • Pan Card/Passport/ Form 60 (If Submitted in last 60 days)
  • Partnership Deed
  • Partnership Letter
  • Certificate of incorporation or Certificate of Registration or Shop & Establishments Certificate or Sales Tax / Service Tax
  • Bank Verification (On Letter head of Bank or Company verified by Bank with contact details of bank)
  • Photo id (Passport/ Election Card/ Driving License)
  • Address Verification (Original Copy of Bank Statement/ Electricity Bill/ Landline phone Bill)
  • Lease agreement or ownership deed for business premise / Ration Cards
  • List of Products & Services on Company Letterhead
  • Landline Phone Bill (Original Copy of Landline phone Bill)
  • Last 2 years income Tax Return
  • Last 6 months Bank Statement.
  • One Photograph.( of the Merchant )

Private Ltd /Public Ltd Co

  • Web site URL
  • Pan Card/Passport/ Form 60 (If Submitted in last 60 days)
  • Bank Verification (On Letter head of Bank or Company verified by Bank with Contact details of bank branch)
  • Certification of Incorporation, MoA, AoA
  • Certificate of incorporation or Certificate of Registration or Shop & Establishments Certificate or Sales Tax / Service Tax
  • List of Directors and Signatures
  • Board Resolution signed by minimum two Directors
  • List of Products & Services on Company Letterhead
  • Landline Phone Bill (Original Copy of Landline phone Bill)
  • Last 2 years income Tax Return
  • Last 6 months Bank Statement.
  • One Photograph.( of the Merchant )

NGO

  • Web site URL
  • Pan Card/Passport/ Form 60 (If Submitted in last 60 days)
  • Bank Verification (On Letter head of Bank or Company verified by Bank with contact details of bank)
  • Trust Deed
  • Trust Resolution
  • Certificate issued under registration with the Charity Commissioners office
  • Landline Phone Bill (Original Copy of Landline phone Bill)
  • Last 2 years income Tax Return
  • Last 6 months Bank Statement.
  • One Photograph.( of the Merchant )

Note: All the above documents should be duly stamped & signed

PS: I have heard stories of people negotiating some good deals with payment gateway companies, so do try your luck.

Author: Bhanu Pratap Singh Slathia

About the author

Bhanu Pratap Singh Slatia, entrepreneur and web solutions professional runs his own startup company Ladybird Web Solution based out of Bangalore. Bhanu also conducts Corporate Training sessions in SEO, Web application development and web programming. He is a certified trainer in Inbound Marketing. He enjoys training young upcoming professionals. On a more personal note, Bhanu is inspired by the idea of Global Fraternity and believes in the importance of developing a global language, that draws from the common experiences of being human rather than focusing on differences. He is part of an international community of people exploring these very ideas called New Acropolis. He also loves to travel and visit new places and cultures and is interested in photography.

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