Payment Gateway Gyaan…

So when all the ‘sarkari’ work was over, I thought we were done with all of those frustrating situations where you feel totally helpless with the system. I was wrong…

It was when we started deciding on the payment gateways that we were in for a surprise. In general, if you are running a business with high margin and your individual transactions are of large value, you may not have to bother about it. One of the costlier, but reliable gateway or something like paypal would work fine for you.

But if you are relying on having a low margin, high volume business, targeted at Indian audience, you are in for a trouble! The reliable Indian payment gateways, are super costly and you will either have to increase the prices accordingly or see you margins being wiped out. And these also have high setup costs. Those which seem to have more reliable rates have scary reviews on the Internet.

Some of the international gateways like Paypal and Moneybookers are good, service-wise and also from the point of view that there are no upfront costs. But there are other things to be considered.

Firstly whether they deal with Indian Rupees or not. Now, when a gateway supports “Indian Currency”, it may mean two things. First and more common one is that they will send you the money in Indian Rupees. This is what Paypal and Worldpay do. But you have to pass on your prices to the gateway in USD, which at some point even your customers will see. Their cards will be charged in USD and are subject to exchange rate volatility as well as any service fees their bank/CC company may charge for foreign transaction. Then when you get the money from them, again exchange rate uncertainties come into picture, because they will convert USD to INR before sending it to you.

Moneybookers is better for businesses targeted at Indian audience because it supports INR in a broader sense. It deals directly in Indian Rupees. So, prices, credit card charges and remittance to you are all in INR. No forex business. So you know exactly what is being charged to your customers and what you will be getting. They don’t even have any setup cost. But there is another caveat. Their charges per transaction is 3.5% of the transaction value+ 0.29 Euro. Now this 0.29, which looks so innocuous expressed in Euros, turns out to be equivalent to 20 INR approx. Not a good thing for selling low value items!

As of now, we have one Indian Payment Gateway provider which looks okay from all perspectives. Let’s hope that it works out soon. Our store opening is kind of stuck on this.

This entry was posted in Business & Entrepreneurship by Jaya. Bookmark the permalink.

About Jaya

Jaya Jha is an entrepreneur, a techie, a writer and a poet. She was born and brought up in various towns of Bihar and Jharkhand. A graduate of IIT Kanpur and IIM Lucknow, she realized early on that the corporate world was not her cup of tea. In 2008, she started, one of the first print-on-demand publishing platform in India. She currently lives in Bangalore and divides her time between writing and working on her company's latest product InstaScribe ( with a vision to make it the best e-book creation tool. Blog: Twitter: @jayajha Facebook:

21 thoughts on “Payment Gateway Gyaan…

  1. How about getting rare old books available on your site on demand. For example the book “insulted and injured (Dostoyevsky)” is not available in India with ease anymore. There are old books whose authors died well before 1955 and the books are in public domain. I can always download an ebook but they are no match to old fashioned physical books.

  2. Vj: Good Suggestion. We do have this in mind. Let us open the store and then we will strive to provide more and more valuable content in book form.

    Austin: I have replied to your e-mail id.

  3. Hi Jaya,

    How did you handled site design/development portion, including payment gateway integration? Was it through coding or some tool? Also how was the experience of integrating Ubercart?

    Thanks in advance.

  4. Hi Jaya,

    Congratulations on pothi. It looks very neat.

    Can you please tell us the name of the Indian payment gateway provider and how you handled the integration?

    Many thanks

  5. How did you handled site design/development portion, including payment gateway integration? Was it through coding or some tool? Also how was the experience of integrating Ubercart?

    Thanks in advance.

    Can You Please forward the same mail sent to Ram Manohar Please.

  6. Hi Rajesh,

    COD is on cards certainly. Completely agrees with your its necessity in Indian market.

    About the site design and other questions, please check your e-mail.

  7. Why dont you consider COD then..COD – Cash on Delivery.

    I products from as it was giving Cash on Delivery option.

    Although I have credit card its easier to go for COD.

    I tried to buy a book from but I could not as the SMS did not get delivered to my mobile from monrybookers. I choosed other options after that but I got fed up and cancelled the order thinking that I ll try later.

    This way you will lose many customers.

    I strongly recommend Cash on Delivery. Its both easier for customers and you also.

  8. Well – unfortunately COD is not “easier” for a merchant! It has lots of issues and that’s why we have to sort through some of them before introducing them. But as I said I completely agree that it is important to have that in Indian market. Hence, we are working on it.

  9. Btw, you could use electronic transfer to complete your purchase, if your bank provides that facility. That would be easier than both COD (you have to be present to make a payment in case of COD) and Credit Card.

  10. Hi Jaya,
    I have been struggling to find a decent indian payment gateway as well. Will you be kind enough to let me know the answers to Rajesh’s (Comment number 9 above) questions please.



  11. hey jaya…

    just stumbled upon ur blog and i think pothi is a innovative idea…btw m also in process of starting a online venture so wanted to know which gateway provider is better in ..i would be delighted if u respond….

    all th best for pothi!!!!!!


  12. This was posted long back. A lot of twists and turns later, we had first gone for direcpay. But it sucks in terms of user experience for buyers as well as merchants. Right now we are with EBS and this one is promising. Had no major issues till now.

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