A payment gateway is an intermediate software that acts as a link between a merchant who accepts the money and the customer who wants to make an online payment for a purchase and conducts the money transaction process. It helps to authenticate the cardholder’s details for offline and online dealings.

However, there are quite a few myths about a payment gateway in India and we would like to debunk them today!

Myth 1- Payment Gateways are not safe

It is the biggest and most common myth among people that payment gateways are prone to cyber fraud and security breaches which makes business owners reluctant to use online payment gatewaysas a transaction method. Indeed, data hacking in digital space isn’t improbable. But 75% of businesses that suffered fraud worked on traditional methods. Payment gateway in India has improved and modified the process of money transactions, providing a faster and safer environment for both customers and merchants. They have implemented advanced security features like fraud detection, PCI-DSS compliance, SSL certification, data encryption, etc which also protect your confidentiality. They come with AP automation and ePayment automation. They include audit trails that show you who authorized payments and what kind of verification steps they went through. Thus ePayments have a lesser risk of fraud.

RBI has made it compulsory for all payment gateways in India to follow the security guidelines.

Payment Gateways employ advanced security features that make them safe from online fraudulence.

Myth 2- Implementation of payment gateways is expensive

Payment Gateways come with so many security features and advanced technologies. They require regular maintenance and improvements but provided the facilities, we can’t expect them to be cheap. However, that doesn’t mean they are too expensive. The implementation and maintenance cost that payment gateway in India is reasonable especially when self-hosted. You don’t have to worry about risking too much of your money and go for it.

Myth 3- Small businesses can’t use payment gateways

Any business can use online payment gateways in India, regardless of their type and size. You can keep traditional methods as an option too if you want to grow your business, you have to implement e-Payment methods as they are safer and more convenient for your customers to use. They are affordable and easy to use so you can easily insert them into your operating process.

Myth 4- Customers prefer offline payment methods

In this generation, everybody prefers online payment gateways in India because it’s much more convenient than walking around with loads of cash in their pocket. Online shopping, booking tickets, food orders have all taken up e-Payment methods for convenience and security. “Cash on delivery” is getting obsolete with the passing days.

Myth 5- New Method takes too long to learns for employees

Some business heads think that it will take a long time for employees to learn the latest methods and it will be difficult too. However, many online payment gateways in India have a simple user-friendly interface. You can control all transactions, ACH, wire transfers, etc from one application only. Manual payment operations take more manpower and thus more time. The time taken in cutting the check, mailing the check, tracking the deposit of the check are all saved in online methods. The AP automation process has been found to reduce the companies’ processing time by 70%. EPayments also leave you the option of early payment discounts saving your business even more.

Myth 6- Payment Gateways result in more errors

Some people are under the impression that since E Payment systems are automated and are not invigilated by humans, they will result in more errors. In reality, manual systems have more chances of error. Errors like data entry errors, premature payments, invoicing matching errors, and duplicate payments are very common in manual processes. In manual processes, an employee can process payments for a batch of invoices before the approvals have taken place or your company is not ready to take payments. In that case, your company faces a setback. The scope of such mistakes is not there in e-Payment systems, AP automation, and the inbuilt programs that payment gateways in India mainly use these days. They depend less on human communication as the automated system does the communication for you. Softwares with end-to-end procure to pay automation and invoice automation, make much fewer errors than in manual processes.

Myth 7- Payment Gateways offer banking services

It is a common misconception that payment gateways in India offer banking services. Banks are responsible for processing online transactions while payment gateways link the customer and the bank. Their roles are very different.

Myth 8- Digital payments take 2-3 days to process

Many consumers understand that the money may take a few days to reach my account through a payment gateway. Businesses want to avoid this delay. The ACH(Automated Clearing House) Network technology allows funds to be transferred within hours. They don’t require any lengthy approval process. Thus, they avoid the traditional delays due to insufficient funds or unauthorized transfers and giving faster access to customers.

These were some of the most common myths among people regarding payment gateways and we have tried to clear the confusion. EPayment systems ensure your convenience and security. That’s the bottom line.

Avatar

By SARAH

Leave a Reply

Your email address will not be published. Required fields are marked *