Satan
Discoverer
Hey fellas,
I have a few questions about Indian Payment Gateways. Is there anyone working in the industry that can answer some of these questions?
1) Why are they so expensive?
All gateways charge a one time setup fee which is anywhere between 10k to 75k depending on the company and the TDR they offer you.
2) Why is there an annual fee?
Alsmost 99% of the payment gateways out there charge an annual fee which is upwards of Rs. 2600.00
3) Why are the Transaction rates so high?
Banks charge physical store merchants about 1.5 - 2.5% on every transaction when using a POS Card Machine. Why is it that online transactions are all above 3.5% (you only get that rate if you pay a huge one time setup fee, else it's between 5 & 7%)
Considering everything is online and there are no physical units (like POS machines) etc, involved, why is setting up an online store in India such an expensive affair?
I have a few questions about Indian Payment Gateways. Is there anyone working in the industry that can answer some of these questions?
1) Why are they so expensive?
All gateways charge a one time setup fee which is anywhere between 10k to 75k depending on the company and the TDR they offer you.
2) Why is there an annual fee?
Alsmost 99% of the payment gateways out there charge an annual fee which is upwards of Rs. 2600.00
3) Why are the Transaction rates so high?
Banks charge physical store merchants about 1.5 - 2.5% on every transaction when using a POS Card Machine. Why is it that online transactions are all above 3.5% (you only get that rate if you pay a huge one time setup fee, else it's between 5 & 7%)
Considering everything is online and there are no physical units (like POS machines) etc, involved, why is setting up an online store in India such an expensive affair?