With the ever-increasing digitalization and the paradigm shift in the world economy, we are now surpassing paper-based payment instruments and becoming more inclined towards digital payment. Also, governments worldwide aim to supply public services and conduct banking operations electronically. Moreover, the payment gateway for India is also used to serve the rural population because of the all-time high internet availability with considerable cost advantages and reach.
However, security, effectiveness, and the necessary infrastructure with a regulatory environment are crucial to accommodate rising volumes of user data. Therefore, an Internet E-Commerce payment gateway is a crucial part of the infrastructure to ensure that such transactions occur across electronic networks without a hitch and with complete security. So, if you handle or own an e-commerce business, selecting the right gateway system is a crucial part of the uninterrupted process. It enables the merchant’s website to demand payment using the customer’s preferred payment method. Payment is securely executed from the buyer to the vendor once it has been accepted.
Interesting? Read on to understand the payment gateway for India.
The payment gateway for India plays a crucial role in online global transactions for secure monetary transfers between the sender and the receiver. Once the transaction is processed, a payment gateway like Razorpay approves and completes the money transfer between the merchant and the customer.
Moreover, it helps e-commerce maintain the rapport between customers and vendors for quick, secure, convenient, and successful transactions. Finally, if you are wondering whether the bank authorizes the payment gateway or some other entity works for it, you must understand that the bank provides gateway services and authorizes the company to provide secure and convenient gateway services.
Furthermore, the gateway goes through several phases: entering the card information to ending with money flowing into the merchant’s account and settling the payment. In this section, we will understand the payment gateway for India in detail. Let’s understand the example of e-commerce.
- When you buy something online, you must confirm the order and select the payment option for transferring money.
- The browser sends the payment information to the merchant’s website after encryption. A secure Socket Layer is used for the encryption of the information. The merchant must be SSL certified for this process. The merchant’s website then transmits this encrypted data to the gateway.
- The payment gateway you have chosen will take the transaction further by taking the encrypted transaction details to the merchant’s bank.
- Further, the payment gateway checks whether the customer has selected a debit or credit card. Accordingly, the bank transfers all the data to the card association and then the association transfer to the issuer bank.
- If net banking or UPI is chosen, then the information for money transfer will go to the customer’s bank server.
- After all these processes, the bank check for the availability of fund in the buyer’s account and begin the tally of CVV or Pin.
- The bank approves the transaction if everything goes well and it is ascertained that the buyer has provided the right information. Otherwise, the buyer will get a payment decline message.
- The encrypted response is sent back to the gateway buyer has selected for the transaction. The merchant then approves the transaction and confirms the order.
- The role of the payment gateway doesn’t stop here. For receipt approval, the merchant sends the sanction code to the bank via the chosen payment gateway.
- After all these steps, the merchant’s bank transfers the money to the merchant’s account.
- Lastly, the merchant finally receives the amount in their account.
The entire procedure must be completed quickly, which calls for excellent coordination amongst all parties involved. Here, the effectiveness of the Gateway becomes apparent. This entire process needs to be finished in seconds with a trustworthy Payment Gateway for India operating at peak speed. So, if you are looking for the right payment gateway for a quick and secure monetary transaction, then Razorpay should be your first choice. Visit their website today to find out more!