An e-commerce payment system facilitates the acceptance of

electronic payment for online transactions. Also known as

financial electronic data interchange (FEDI), e-commerce payment
systems have become increasingly popular due to the widespread
use of the internet based shopping and banking.
 
A payment gateway is an e-commerce
application service provider service that authorizes payments for
e-businesses, online retailers, bricks and clicks, or traditional
brick and mortar. It is the equivalent of a physical point of sale
terminal located in most retail outlets. Payment gateway protects
credit cards details encrypting sensitive information, such as
credit card numbers, to ensure that information passes securely
between the customer and the merchant and also between
merchant and payment processor.
 
 
A payment gateway facilitates the transfer of information
between a payment portal (such as a website, mobile phone or IVR
 PayPal is an e-commerce business allowing payments and money
transfers to be made through the Internet. PayPal serves as an
electronic alternative to traditional paper methods such as checks
and money orders.On October 3, 2002, PayPal became a wholly
owned subsidiary of eBay.Currently PayPal operates in 190
markets,and it manages over 175 million accounts (70 million
active accounts). PayPal allows customers to send, receive, and
hold funds in 19 currencies worldwide. PayPal operates locally in
13 countries. Residents in 190 markets can use PayPal in their
local markets to send money online.
 VeriSign Inc. is the leading provider of digital trust services that
enable everyone everywhere to engage in commerce and
communications with confidence. VeriSign’s digital trust services
create a trusted environment through four core offerings - Web
presence services,telecommunications services, security services
and payment services. Sign was founded in 1995 as a spin-off of
the RSA Security certification services business.The new company
served as a certificate authority (CA) — a role it still fulfills --and
its initial mission was "providing trust for the Internet and
Electronic Commerce through our Digital Authentication services
and products." VeriSign now has more than 3,000,000
certificates.It is the largest CA behind the encryption and
authentication on the Internet. According to VeriSign, its payment
gateway processed over $40 billion in payments in 2004. VeriSign
is well known for the VeriSign Secured Seal, which is an outward
expression of a Web site's authentication and encryption
commonly posted to VeriSign SSL Certificate customers' Web
sites.
 Auction giant eBay acquired VeriSign's payment gateway business as part
of a broad strategic alliance between the two companies.eBay's PayPal paid
approximately $370 million in cash and/or eBay stock for the VeriSign
unit.VeriSign's payment gateway business merged with PayPal's merchant
services platform.The combined unit is expected with an incremental $100
million of revenue at a 20 percent pro forma operating margin The move is
likely to bolster PayPal's drive to attract more e-commerce merchants to its
payment processing services.In addition to PayPal's acquisition of
VeriSign's gateway business, eBay also agreed to a multi-year security
technology agreement that will see eBay investing in VeriSign's payment
security solutions. Among those solutions is two-factor authentication.
 Paypal merchant accounts are easier to set up than most other merchant
accounts. Paypal has no fixed costs and offers a similar product with
slightly higher transaction fees. But this difference in transaction fees is
only $.05 per transaction. With such a small difference, Paypal is still a
bargain up until around 1000 transactions per month. At this point (1000+
transactions) the Versign "per transaction fee" drops to $.10 per
transaction and makes Verisign's fee structure more appealing. Paypal has
always had a very fair deal going ever since they launched in 1998, and as
of October 2002 they have 20 million members.
 By comparison, a Verisign merchant account has much higher startup
costs. There is also a relatively high monthly fixed cost for this merchant
account. The fees for a merchant account will run around $1,000 year so
long as there are less than 1,000 transactions/monthly, not including per
transaction fees of .25, and something called a discount rate. The discount
rate is a percentage of each transaction, usually 2%-3% but sometimes
higher. Figuring out one’s discount rate is an involved process. One has to
fill out a long application and then practially haggle with the banks to get
the best rate.
 It offers transactions in 18 currencies.
 One can send and receive money through its online account and can send
invoices requests of payments using Paypal.
 One can use his/her credit cards to pay online through Paypal, which
makes it more secure. Paypal serves around 190 markets.
 One can withdraw money through checks or directly to your own bank
account (available to limited countries). It is free to withdraw money in
US Bank account though transactions to other countries might involve
some fee.
 Paypal outgrow every other service by providing you free
sign-up for using their
services.
 Paypal is believed to be the safest way for online transactions.
The encryption system
is quite good.
 Paypal.com gives you a sort of online bank that handles
almost all your needs for
online business: whether it is shopping, selling or just
transactions of money, one can
rely on Paypal.com for its services.
 Paypal accounts have transactional limist and also limits on
the money that various
types of accounts can receive and withdraw. A Paypal
account holder can make a
maximum single transaction of USD 10,000. If you do not have
a Paypal account, you
can make a one-time, single transaction of USD 4,000.
There is a receiving and
withdrawl limit for personal types of accounts. So you need
to check what type of
 Three types of accounts serve the purposes of different users.
 Paypal offer a Security Key System that allows the users to generate a
security key
for their accounts and make it safe.One can order your security key on
Paypal and
keep it with his/her key-chain. It is that small but keeps your online
Paypal account
safe from theft.
 The fees vary depending on whether you are USA or Non USA but
are in the region of
1.9-3.9% depending on transaction amount and a minimum charg
of approx 30 cents per transaction.

• Shopping Carts:  PayPal has a free customizable built in shopping

cart or integrates with hundreds of available shopping carts if you
already have one.
• Subscriptions/Recurring Payments: You can set up recurring
payments - ideal for membership sites.
•  Subscriptions/Recurring Payments: You can set up recurring
payments - ideal for membership sites.
• Donations: Probably the most commonly seen PayPal button.
• Accept Multiple currencies- Accept payments in US, Australian and
Canadian Dollars, UK pounds, Yen and Euro.
• Realtime notifications of payments.
• Test transactions in a test environment o you are sure they work
ok.
• Optional PayPal Accounts: The buyer no longer need to have a
PayPal account to make a purchase. This used to be one of the
main drawbacks to using PayPal. A PayPal account is now optional
and not mandatory.
• Customized Payment Pages: You can add your website colors and
logos to PayPal's payment pages.
• Invoicing: You can send your customers detailed email invoices.  
You can create and save up to 10 customized invoices using
PayPal invoice templates.
• Refunds: You can give full or partial refunds to your customers up
to 60 days after the sale.
• Integrated Shipping: Allows you to create packing slips for your
shipments. Includes integrated shipping and delivery tracking for
buyer and seller.
• Automatically send order updates and status notifications.
• Mass Pay: You can send payments to large groups-like affiliates.
• Auto Return: When the buyer has made the purchase on the
PayPal site he is sent back to a URL on your website. This can be
used to confirm the order, a thank you page, or a download page
or simply just to make sure the buyer stays on your site.
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 Certificate Authority Scalable, robust, high-security CA for high-
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 European domain names Domains for Resellers and Providers Easy through
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 Now a days becoming more and more
suitable for Indian scenario.The following facilities are
found for India

 One can now transfer money from his/her PayPal account to any of bank
account ( his
/her) in India directly from the PayPal website.
 The new e-transfer process takes less than a week to process a check.
 PayPal has also scrapped the withdrawal fees for electronic transfer
if the amount
withdrawn is more that Rs 7000 and a nominal Rs 50 for small transfers.
Earlier PayPal
would charge $5 per transaction irrespective of the amount on the
cheque. 
 To get money from PayPal to a bank account in India, require bank
account number
and the IFSCI code of the bank branch where the account is - call your
bank customer
care service and ask for IFSC code -it’s an 11 digit code maintained by
The Reserve
Bank of India.
The e-transfer facility from PayPal India is available to anyone having
an account in
HDFC Bank, ICICI Bank, ING VYSYA Bank, Axis Bank (
formerly UTI Bank),
Standard Chartered Bank, State Bank Of India, Bank Of India, Canara
Bank, Union
Bank of India, HSBC and Citibank India.
 Before you withdraw the amount from PayPal to your Indian Bank
account, ensure
that name of the bank record and PayPa l match character by
character else the
transaction will not go through and PayPal would also charge a INR 250
processing fee.
 PayPal offers another option for Indians who hold a Visa credit card or
debit card –
• Swift transfer of money from one end of the world to the other.
• Fast and trustworthy, reduce bank commission charges
• Quick, secure, easy
• Free to individuals
• Ideal for online auctioneers, many uses
• Great in theory
• Collects money owed to you
• International, multi-currency, fast, cheap
• Free to sign up
 Paypal, owned by eBay. is a well known online payment
system which has dominated the online payment system
with morethan 100 million users.
• PayPal is well-known and respected in our demographic.The trust factor is
high.
• Payees have the option of using an existing PayPal account, which our
records show is a very high percentage of registrants, or they can use a
credit card or e-check.
• As with other payment gateways, we avoid the liability of collecting and
storing sensitive financial data.
• Setup was quick and simple. VeriSign requires a comprehensive
background check that takes weeks.
• While PayPal's fees are higher than the alternatives, we pass them on to
our customers who are willing to pay for the convenience of using our
system, so that's a non-issue.
So according to me PayPal is more closely to Indian
scenario than VeriSign.
• AB Cpayme nt s.com
• CC Ave nue
• Di rec Pay - Time s of India
• EBS
• Easy 2Pa y.com
• Epaym ents.in
• Trans ecu te
• pay seal ICI CI
• PayGateI ndi a
 ABCpayments.com is an online payment gateway in India that offers
credit card transaction, prepaid cash card payments & online bank transfer
processing services(limited to few major banks only). ABCpayments.com is
the most secured and trusted payment gateway in India. Some of the
services include free shopping cart, invoice management and we provide
total end to end e-commerce solution. ABCpayment has best features
compared to any credit card gateway. ABCpayments offers customers the
benefit to transact through all major banks in India by bringing them on
one common platform that offers one point contact for all banking
transactions.All Cash Card companies integrated,provides highest level of
security,multi currency support,Technical support available.

CC Avenue's payment gateway services offer Indian merchants an

outstanding global platform to cost effectively enter the digital economy.
Accept all leading credit and debit cards on your site.They are considered
to be the best providers in India. (There is no competition in the market)
They provide online order processing via Net Banking as well as by credit
card.
 DirecPay is a unique payment gateway service in the burgeoning e-
commerce space of India. It offers merchants with cost effective solutions,
wide range of payment acceptance modes and secure technology platforms.

EBS has a goal of being a distinctive model - a business truly focused on

providing a professional, consultative & merchant-centric payment
processing service and endeavour to benefit from quality over quantity.
Ease of integration, User Friendly interface to acquire online payments,
World Class Security systems, Risk Monitoring on an ongoing basis, Smooth
reconciliation, Multiple Payment Options on single platform are some of the
essential features made available by EBS to Merchants, for a smooth E-
commerce experience.
 "eazy2pay" services provide you with electronic bill presentment and
payment services using which you can view, file and pay your bills.
"eazy2pay" is India's first online and instant EBPP services provider with
multiple modes of payments to pay your bills. Fees is one time fees and no
annual charges. They have few big companies in their client list. So it holds
some credibility in its bag.

Epayments.in, an e-business solution from Shrink eTechnologies Pvt. Ltd.,

is offering online money transfer / credit card payment solution for Indian
Merchants, designed to facilitate Payment Gateway System for small,
medium and large websites. Unlike other Payment Gateway Systems, CC-
Service from Epayments.in is very easy to integrate, reliable, secured and
does not have any hidden charges.
This is another payment gateway service from India. But like
CCAvenue, they are also useless.But one good part is, they do
not charge any annual fees.

For integration with this payment gateway, you need Tomcat

installed on your server.Sometimes it seems too
uncooperative (Or any application which can run JSP pages)It
is the costliest probably.

PayGateIndia: Their rates are very cheap compared to other

payment gateway service providers but I am not sure about
credibility of this payment gateway.
 Currently PayPal gateway provider and their transaction and
setup fees are very reasonable. But the only thing they lack is,
time to deposit the funds in our accounts.Moreover there limit
of indian customer is $2500 which is very less for some
customers.But recently paypal made some changes in their
agreement like without createing a account buyer can pay a
amount $10000 (limit for credit card in whole life) from their
credit card and if create new account then takes time in
verification and all. That often create problems in taking
amount from buyers. A person having account in paypal.com,
there is no need to open account in US Bank for this payment
gateways. They send you payment by DD, Cheque or Wire
Transfer. They convert the amount to INR according to current
conversion rate of that day.
 CCAvenue seem to support a very limited number of businesses.
And Website development/hosting doesn’t figure out in their list.
In that respect Paypal is best……even if it takes time for the
money to reach your account, its still the cheapest and reliable
way to go about. About their service - they are pretty good and
quick in taking care of the customers.PayPal is the also best
because its popular and lots of people use it.
For selling non-tech stuff online (main services or ebooks)
CCAvenue is good option.But considering national and
international level payment gateway, Paypal is best.
 Products priced in INR has to be converted to USD before
sending it to paypal.This is a major problem. If you are a seller,
you may have to pay some commission if you use it as a business
account .Unwanted mails, if you forget to unclick the marketing
option when registering.Someone else is watching your financial
information which can make you feel a little uncomfortable.Paypal
becomes a necessity if you want to be an ebayer.One of the most
widely attacked site for Phising and other scams.
 Actually there is lot of scope for Indian payment gateways here,
they can do really well but they have to cut down their costs. High
costs just does not make any sense to a small businessman.
The problem with Indian companies is, they do not look for
benefit of the customers, they always look for making money.