PAYMENT GATEWAY

1. Payment Gateway- A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers. Payment Gateway is must if you have your own website, all major marketplaces have an existing payment gateway infrastructure.

Features of a System Designed to Handle End to End Payments:-

1. Accept All Payment Modes- With Domestic and International Credit & Debit cards, EMI, Net-banking from 58 banks, UPI and 8 mobile wallets, Razorpay provides the most extensive set of payment methods.
2. Checkout and Global Card Saving- An easy to integrate Checkout with cards saved across businesses so that your customers can pay seamlessly everywhere.
3. Powerful Dashboard- Get reports and detailed statistics on payments, settlements, refunds and much more for you to take better business decisions.
4. Built for Developers- Robust, clean, developer friendly APIs, plugins and libraries for all major languages and platforms that let you focus on building great products.
5. Robust Security- PCI DSS Level 1 compliant along with frequent third party audits and a dedicated internal security team to make sure.

Most payment gateways accomplish that in a few seconds with these steps:

1. Encryption: Between the user’s browser and the server of the retailer, a payment gateway will encrypt (encode for private use) data for exclusive use between seller and buyer.
2. Request: The authorization request occurs when a payment processor gets approval from a credit card company or financial institution to proceed with the transaction.
3. Fulfilment: When the payment gateway has the authorization, it allows the website and interface to proceed to the next action.

Types of Payment Gateways-

1. Redirects- Redirects might include an option for a PayPal payment, for example. When the gateway takes a customer to a PayPal payment page to handle the complete transaction (i.e. processing and paying) it becomes a “Redirect.” This has the advantage of simplicity for the retailer. A small business can use a Redirect gateway to incorporate the convenience and security of a major platform like PayPal, but the process also means less control for the merchant — and a second step for customers.

2. Checkout on site, payment off-site.- Consider Stripe’s payment gateway: the front-end checkout will occur on your site, but the payment processing happens through Stripe’s back end.
“Always use established payment gateways such as PayPal and Stripe, and ensure that customer’s credit card data is collected directly on the third party site so that your own site is never handling sensitive payment information. Use SSL on your own site so that the connection between your site and the payment gateways is encrypted at all times.
Like redirected payment gateways, there are some advantages to handling your payments this way, including simplicity.
But as is the case above, you won’t be able to control the user’s entire experience through the payment gateway.

3. On-site payments- Large-scale businesses tend to use on-site payments completely handled on their own servers. The checkout and payment processing on behalf of the customer all work through your system. Now the advantages are flipped: you’ll have more control, but also more responsibility.

For getting a payment gateway the mandatory documents are and your website must have the following:

• Website Terms of Use
• Website Privacy Policy
• Refund Policy
• Bank account in the name of the business
• PAN Card of the business
• Certificate of Incorporation
• Memorandum of Association
• Articles of Association
• Identity Proof
• Address Proof