As you know, payment gateways allow businesses to accept electronic payments through various methods like net banking, debit cards, credit cards, e-wallets, and more. These payment gateways deduct the money from buyer’s account on your behalf and transfer the amount to your linked bank account after retaining transaction fee.
In fact, a reliable payment gateway is essential to make sure the payment has been done securely and the amount will be transferred to your account without any hassle.
How Payment Gateway Works?
Before choosing the best payment gateway for your app, it is important to understand how payment gateways work. In fact, most of the mobile app development companies who develop apps help their customers understand the working procedure of payment gateways. However, it is always better to understand it proactively.
Here is the step-by-step process:
Step 1: When a customer enters his card/net banking details, it will be sent to merchant’s (app owner’s) server as encrypted information (encrypted via SSL).
Step 2: The merchant’s server will then forward the transaction details to their payment gateway via SSL encryption.
Step 3: The payment gateway moves the transaction details to the payment processor used by the merchant’s acquiring bank.
Step 4: In this step, the payment processor forwards the transaction details to the card association (Master Card/Visa) or the respective net banking department.
Step 5: The credit card issuing bank receives the authorization request from the processor and it reverts back to the processor with a response code.
Step 6: The processor forwards the response to the payment gateway and the payment gateway forwards it on to the website where it was initiated and processes payment.
How Does Merchant Do Settlement with Bank?
The merchant submits all their approved authorization to their acquiring bank via their processor in a batch. The bank credits the merchant’s account with the total amount of approved funds. This entire process, from authorization to settlement, typically takes 2 days. Let’s now know the top payment gateways.
Top 3 Payment Gateways for Mobile Application in India
- CCAvenue (No Setup Cost, 2% TDR)
CCAvenue is one of the most used payment gateways in India. It offers a wide range of payment collection options for merchants. It supports international credit cards and 27 currencies including INR, UAE Dirham, USD, Pound Sterling, Saudi Riyal, and Canadian Dollar. CCAvenue receives payment from debit cards, credit cards, net banking, and Paytm wallets as well. They provide 24 x 7 x 365 days support via Chat (except weekends), Phone call, and email.
Platforms supported: iOS, Android and Windows Phones
PayUbiz is a subsidiary of the global firm PayU. It accepts payments from credit cards, debit cards, net banking, mobile wallets, and supports international cards as well. It offers some special features like quick retry, single click checkout, and dynamic switching, which may help in increasing conversion rate. PayUbiz is adhered to PCI DSS compliant system. PayUbiz also supports CVV less transaction. They charge 0.75% for transactions below INR 2000, and 2% for the transaction of more than 2,000 on debit card transactions, which varies from credit card, cash cards, multi-bank EMI, and online transactions.
Platforms supported: iOS, and Android
- InstaMojo (No Setup Cost)
InstaMojo is recommended for apps that sell digital products such as music, eBooks or videos. InstaMojo charges 1.9% of the transactional value for an every completed transaction. But it is not a great option for international payment.
Platforms supported: iOS, and Android
Make sure you’ll choose the right payment gateway according to your preferences like charges and plans, and the type of payment methods it supports. It is better to take the help of an expert mobile app developers who has experience in integrating payment gateways into apps.