With the boom in the eCommerce activity Indian entrepreneurs are always looking for payment gateway solutions that can meet their requirements. Whether you are a small blogger or a big merchant you need to incorporate a payment gateway into your website.

So in this article we are giving you 5 best payment gateway solutions with great details.

What is Payment Solutions or Gateways?

Before you read the list of payment gateway solutions you need to know what payment gateways are. Payment Gateway or solution is basically a middleman between an entrepreneur’s or merchant’s website and the bank.

Payment gateway authorizes the credit cards and other forms of electronic payments.

The working process is very simple. Whenever a customer coming on to your website makes a payment, the website sends encrypted credit card details to the payment gateway.

The payment gateway processes all the details and confirms the validity with the bank and finally money is transferred from the customer’s account to the merchant’s account.

The entire process is very simple.

Importance of Choosing a Right Payment Solution

If you are a blogger or a merchant then it is very important choosing a right payment solution. You have to keep in the mind that the payment gateway that you are going to incorporate in your website not only seamlessly integrates but also very safe with money transactions.

You must be able to always trust the safety and security of a payment gateway because you are dealing with your customer’s credit card details and other sensitive information.

Moreover all the payment gateways charge a fee for each transaction. So you have to choose a solution with very low transaction fees and also it must suit your business model.

For example a small blogger with lower transactions each day would prefer a payment solution different than a merchant with higher amount of transactions each day.

5 Best Payment Solutions for Indian Entrepreneurs

Here are the 5 best payment solutions for Indian entrepreneurs.

#1. InstaMojo

The best payment solution for Indian entrepreneurs is InstaMojo. We are going to talk about InstaMojo in great details than any other payment solution.

Sign Up Process

The InstaMojo sign up process is hassle free. You just have to give your email ID, phone number, password and create an account. You also need some other details to complete the registration.

• Choose Individual for Business Type, then describe your product or service, fill other particulars and move on to next step.
• You have to choose an amount for average transaction and number of transactions each month.
• In the next step is, fill your PAN card and other bank details.
• You also need to upload a scan copy of the latest bank statement along with the front page of the passbook.
• You got to be honest while giving all your information especially bank account and PAN card number.

That’s it, you are done and the account is complete. The entire process is so easy.

Transaction Fees

InstaMojo charges 1.9% of every transaction made. Plus they also charge a small service tax.

Here are the complete details.

Physical Products

• If a transaction is carried out for Rs 100 then you as a merchant get
• Rs 100 (Customer Pays)  –  Rs 1.9 + Rs .27[InstaMojo Fees + Service Tax] = Rs 97.83 (What you get as a merchant)

Digital Products

• However for digital products they charge 5% flat for every transaction.
• Rs 100 (Customer Pays) – Rs 5[InstaMojo Fees] = Rs 95 (What merchant gets)
• The money is transferred into merchant’s bank account in 3 business days.
• InstaMojo accepts all modes payment like credit and debit cards, net banking, mobile devices etc.
• The fee for digital products is flat 5%.

#2. CC Avenue

More than 80% of ecommerce merchants use CCAvenue making it the number one payment solution in the country.

CC Avenue accepts all kinds of payment options. According to the CC Avenue website they accept over 6 credit cards, 73+ debit cards, 48+ net banking, 8 prepaid cards and 7 banks EMI.

Fee Structure

CC Avenue offers two kinds of plan Popular and Privilege.

Popular Plan

• For Credit Cards transaction it will charge 3.5% flat
• For American and JCB Cards transaction fee is 5%
• For Debit cards transaction fee is 1.25% flat
• For Net Banking transaction fee 4% flat
• Cash Cards transaction fee is 5%
• The set up fee for the Popular Plan is Rs 0/-. However they do charge annual maintenance fee of Rs 1200/-

Privilege Plan

• For Credit Cards transaction it will charge 2.25% flat
• For American and JCB Cards transaction fee is 3.6%
• For Debit cards transaction fee is 1.25% flat
• For Net Banking transaction fee 2.5% flat
• Cash Cards transaction fee is 3.6%
• The set up fee for the Privilege Plan is Rs 30,000/- and the annual maintenance fee of Rs 3600/-
• Merchant with higher transactions should go for Privilege Plan.

#3. PayU India

Third Payment solution is PayU India. PayU India accepts all major credit cards like MasterCard, Visa etc, Debit Cards of over 50 banks and net banking for major banks like SBI, HDFC, ICICI and Axis Bank etc.

Fee Structure

For set up PayU India charges between Rs 6000/- to Rs 36,000 depending upon the plan. For economy plan set up is Rs 6000/-, for silver plan Rs 12,000/-, for gold plan Rs 24,000/- and for platinum plan Rs 36,000/-.

The annual maintenance fee is flat Rs 2400/- for all the plans.

Transaction Fees for Credit Card

• Transaction Amount up to Rs 4900 is 3.9%
• Transaction Amount up to Rs 9900 is 3.25%
• Transaction Amount up to Rs 19,900 is 2.9%
• Transaction Amount up to Rs 29,900 is 2.5%

Transaction Fees for Debit Card

• Transaction Amount up to Rs 2000 or less is .75%
• Transaction Amount more than Rs 2000 is 1%

Transaction Fees for Cash Card

• Transaction Amount up to Rs 4900 is 3.9%
• Transaction Amount up to Rs 9900 is 3.25%
• Transaction Amount up to Rs 19,900 is 3.25%
• Transaction Amount up to Rs 29,900 is 3.25%

#4. Payoneer

Payoneer offers three ways for transactions direct bank transfer, MasterCard and ATM withdrawals.

Direct Bank Transfer

This is the most popular way for transactions among merchants.

For every bank transfer worth $100 Payoneer is going to charge $2. So the fee is 2%.

In other words if you want to transfer $2000 then you will be paying $40 as a transaction fee hence you receive only $980.

For amount less than $75 Payoneer may charge $3 per transaction.

Payoneer MasterCard

• $3 for monthly card account maintenance
• $5 for Card Activation in US and $10 outside US.
• For Loading Payment (Standard Edition) $1.5 and for immediate $4(each time).

ATM Withdrawals

• ATM Withdrawal for Per Transaction in US is $1.35 and outside US $2.15.
• ATM Decline fee is $.90
• Inquiry fee is also $.90

The advantage is Payoneer charges just $2 for $100 transaction however PayPal can charge $5 for $100 transaction. So you save $3 on every $100 transaction.

#5. Others Like Citrus Pay, EBS, etc.

There are other payment solutions like Citrus Pay or EBS that entrepreneurs may like to use.

Citrus Pay

• The commission rate of Citrus Pay is flat 1.99% + Rs 3 for every transaction.
• The annual maintenance fee is Rs 1200.
• Moreover Citrus Pay provides API to seamlessly integrate the payment solution features into the website.

EBS

• Transaction fees for credit cards can start from 2.75% and go up to 3.75% and for debit cards from 1.25% to 1.5%.
• The set up fee is Rs 11,999/- and annual maintenance fee is Rs 2400.

So these were 5 best payment solutions that Indian entrepreneurs would like to integrate into their website.

However out of 5 first three InstaMojo, CC Avenue and PayU India are the best. The PayPal and other payment gateways in the list are the second choice.