For startup this is most important. You definitely are thinking the same! In case your venture fails then it'd be wise to save expenses from beginning itself! So compare all initial costs. However recurring costs like TDR and AMC are most important. TDR can go from 2.5% to as high as 7%. Don't forget to factor in 10.2% taxes for your payments! 's TDR is highest in India. It's high TDR will pinch you if you get even slight success and you'll want to move to other Payment Gateways. So select a right Payment Gateway depending on your chance of success.
Do you know that ICICI Payseal offers two types of payment gateway interface with different TDR's? One with less TDR one supports only Indian credit/debit cards while the other one supports all local as well as international cards. This is very important if you want to receive payment from across the world.
Currently for a startup accepting credit card payments may be sufficient for you. But in the longer run and also to provide good customer experience you may want all sorts of payment facilities for your customers for example: Credit Cards, ATM-cum-Debit Cards, Direct Bank Debits, Cash Cards and Mobile Payments, Interactive Voice Payments. It's not limited to this. Does it support American Express credit card? Check the features you want.
In case of problems how good assistance they provide. You'll need to factor in their service feedbacks from your friends etc. Also how fast do they resolve the issues?
You'll need to read thoroughly their agreement say for Chargeback(when customer is asking for chargebacks) and refunds. For example almost always sides with the customer when he/she reaches with the complaint "item not received". Not only the customer keeps your item and he/she will be issued a refund, the credit card merchant account may then be blocked or charged a penalty. Some payment gateway providers in india side with the merchant rather than with customer. No matter how well the service you provide to your customers some will always ask for chargebacks. Find this out. This is serious issue.
What types of API's do they support? How much time does it take for site integration etc. This may be a minor issue.
Are you in hurry and want your payment gateway to go online right now? Check with the service providers how much time it'll take to open your account, site integration etc. Don't forget that you'll need to sign several papers and send your id, address proofs to them by courier. Factor in holidays -- Saturdays/Sundays.
Payments do fail. Servers can crash, network can get interrupted. Compare the service provider's online solution for smooth payment statistics. As of now only IRCTC provides this statistics of various payment gateways in India.
Look for the delay when the transaction money is transferred to your account. Is the service provider ready to provide comfortable mode of transfer say to your bank account? Some provide daily settlements while some on weekly basis.
Just to save your start up cost you most probably started with an Economy plan. But your orders are on increase and you don't want to pay high TDR ( 7% in case of CCAvenue). So you'd like to switch to a plan with less TDR. What'll be the upgradation cost for this?
Most of the Payment Gateways are now provide shopping cart free. Similarly most likely they'd be providing you with Chat, SMS, daily & weekly reports. Tabulate all these facilities. You will also want to know the feedback of their Shopping Cart, how easy it is to integrate etc.
Not all online payment gateways in India provide this facility. It looks more professional and easy to remember when a customer sees your company name in his/her credit card statement. If the internet payment gateway service provider's name appears then the customer may be confused and there is a chance for him/her to raise a Chargeback.
This means that the payment gateway provides you to automatically bill the customer regularly say monthly basis for some subscription services etc. This will make your life easier if you need to provide such services which need recurrent billing.
This is same as the difference between the Paypal Website Standard and Pro packages. See the section "Customers Make Payments on YOUR Site". That is if the payment gateway meshes with your website and the customer does not see "Click here to return to the merchant site", it provides smoother experience for the customer and this also reduces payment failure rates.
Check for Payment Gateway uptime statistics and availability data of the service.
Check the status with lost password policies and account administration retrieval. For instance PayPal, due to strong fraud detection policies, has rather strict procedures that can even lead to account suspension.
Discuss commission policies; some gateways besides the standard commission fees can provide negotiable commission policies, especially if your yearly or monthly revenue exceeds some thresholds.
Check for the user base of established services. For instance, PayPal has a large number of users that have a habit of performing transactions through the specific payment system. They have income from AdWords or relevant promotion actions and they tend to think of the service as their personal bank. So, in that case your client base will have an extra reason to fulfill the purchase with payment if they feel familiar with the service itself.
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