These are the days of e-commerce and e-tailing.These companies have to receive payment through the customers. There is facility of COD or cash on delivery. here the courier collects the amount in cash after delivering the ordered item and deposits the money in company account.Another method is to use the electronic payment through the card. This is managed by a payment gateway company. When a customer buys goods from the e-commerce site, the payment gateway company collects his basic details if he wants to pay from his bank account through netbanking.There is a netbanking transaction where the gateway engages the customer’s bank directly.The realised payment is passed on to the e-commecrce site.The payment gateway company keeps around 3.0 per cent as its own commission.Another route is when card payment is used.As in the previous case, the basic details are passed on and verification is handed over to the Big Banks who act as intermediary between the card issuing bank and customers and make the payments on behalf of the issuing bank. Big bank tie up their funds and so they charge 0.2 per cent of the billed amount.Big banks check with Visa/Master network.These networks charge 0.35 per cent of the bill transaction.After the card is verified, card issuing bank debits the customer and pays the payment either to the payment gateway company or the big bank. Issuing bank charges 1.25 per cent as commission.Payment gateway company passes on the proceeds to the e-commece site, retaing aroun 3.0 per cent as commission

The biggest bug bear is the failure rate which is the failure of the process after initiation by the customer, something or the other going wrong.When a transaction fails, the customer should not return to square one. Instead he should find himself at the payments page  with the particulars he had filled in.This reduces the customer’s frustration level, and increases his chances of second try.

Well-known payment gateways companies are CCA Venue, BillDesk and TechProcess.The new companies are Citrus, Zaakpay and PayU.

A customer has to pass through eight separate hops or fresh web pages before the transaction is completed. At each hop, there is a chance of failure.If you reduce the number of hops, it makes an immediate difference. Ideally, it should be one-click payment solution.

The global brands are eBay’s Paypal and Alibaba’s Alipay which is China-based.