online payment prevent corona

How Online Payment prevent the spread of coronavirus?

We all are aware now that the coronavirus does not spread through Chinese food or Alcohol Beverage, importing goodies from china and more, but one thing we are not aware of is the risk of getting infected through currency note exchange.

Since India has shot up to 110 cases of Coronavirus, the government has issued several measures to keep people safe.

What is Corona Virus?

corona virus

Coronaviruses are a wide family of viruses, according to WHO, that trigger disease ranging from the common cold to more serious diseases including Middle East Respiratory Syndrome and Extreme Acute Respiratory Syndrome. 

A novel coronavirus is a modern 

strain not previously found in humans.

What Causes Coronavirus?

coronavirus causes

WHO is not sure about the cause of coronavirus. For now, doctors and medical experts have reported that respiratory droplets produced when a person already infected by coronavirus coughs or sneezes.

A recent article by Economic Times states that exchanging cash could be risky for people as the virus is spreading fast. In India, cash is still the primary mode of payment. For all the small payments in the market, restaurants for traveling we prefer cash payment.

Cashless Payment prevents the spread of Coronavirus.

Currency notes are easily transmittable disease carriers. 

Indeed, the 2016 International Review of Scientific Research reported that over 58 percent of banknotes bore pathogenic disease- agents. 

So, how are you making payments? Go ahead! It is safer to use digital wallets in moments like these to carry out all of your purchases.

Related Post: Payment Gateway for MSME’s.

How Digital Payment can help you in the Corona Virus outbreak?

Qr Code Payment

All the grocery stores, instead of taking cash you can put the QR Code on the cash counter which can be scanned by your customers to make payment. All you have to do is, Download a UPI payment app like Google Pay, PhonePe, BHIM, Paytm and print your QR code and stick it on the cash counter. The payment is done in seconds and reflects immediately in your bank account.

Card Payment

 

online payment

For years now we have used credit cards and debit cards to make an online payment. A good enough substitute for cash, cards are a good idea if you’re running a company that needs a huge customer payment.

Payment Gateway

payment gateway integration

Using a Payment Gateway can be helpful as you can accept huge payments from your customers online. All you have to do is sign up with a payment gateway, update your bank details and start using the payment gateway. You can accept payment by add payment button on your website or sending the payment link to customers, they can click on the link and make payment using the desired payment method like debit card, credit card, NEFT, UPI and more. With a Payment gateway, you can accept payments anytime anywhere.

Related Post: Everything you need to know about Payment gateway.

E-Wallet

ewallet

You can accept payment from your customer into the e-wallet, payment apps like Paytm, Amazon provides e-wallet feature. This money cannot be transferred into a bank account but can be used to make bill payments.

What the RBI needs you to do to prevent the disease from spreading:

When you are visiting an ATM to withdraw cash, make sure to wipe the keypad with a tissue before and after using it. Do not reach an ATM when it is busy and if hand sanitizer is available, apply it after handling the cash.

Note, don’t panic, don’t touch your face and, most importantly, start collecting payments online –it could save your life!

We are providing Payment Gateway at Discounted Rate till 4th May.




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    MSME payment gateway

    Payment Gateway for MSME’s

    India has more than 20 million SMEs. As an online business, it’s not enough just to have a shop or website. It’s also important to give the customers the choice to pay across different modes. There are a variety of gateways for payment in India. How do choose the best payment gateway for your business?

     

    Let’s roll down and help you choose the best payment gateway.

     

    MSME’s and Individual Seller

    If you own a business with investment less than 10 crores and a number of employees fall below 50 then here’s what you should be looking for in a payment gateway to go online.

    Being an MSME you should be looking for a payment gateway with:

    • Cost-effective.
    • Effortless documentation and legal matters.
    • Convenient payment for customers
    • Coding free integration
    • Multiple Payment modes
    • Multiple Payment collection platforms (Social Media, Message, Emails and more)
    • Provides Online Store.

     

    Related Post: Points to consider before integrating a Payment Gateway.

    Small Business:

    Do you own a general store or you are a vendor looking forward to collecting online payment? Your local store might be doing well without an online payment facility but having an online payment solution can help you boost your sales, how? What is a customer shopping at your store wants to make a card payment and you do not have an online payment feature? You will lose sales. Thus, having a payment gateway can help you boost sales.

     

    What should you consider?

    • Providing your customers an online payment option will be an add on for you. 
    • Look for a payment gateway that provides not just wallet but other online payment features like Credit/ Debit card, Net banking and more. Having just the wallet payment features has its drawbacks like the customer wanting to pay online might have not done KYC for wallet payment.
    • Look for a payment gateway that provides hassle-free documentation and legal matters because you do not want to visit your payment gateway office back and forth for getting your documents clear where you invest your time and money.
    • Payment gateway should be coding-free as you do not want an additional person to look after the payment gateway to resolve the technical issues.

     

    Online Business:

    Do you have an online business with more than 50 employees?

     

    Here’s what you should consider:

    You should go with the traditional payment gateway. Traditional payment gateways are time-consuming when it comes to documentation and legal matters but considering your high investment it is worth your time. Also, you need to need an additional person to look after the integration of the payment gateway. Make sure that the payment gateway provides multiple payment options so that your customers can pay with any payment method they are comfortable with.

     

     

    Large Retail Chain:

    Do you own a Super Market or Retail Chain?

    Here’s what you should consider:

    Online Payment is not for you. But having an online payment solution and providing multiple payment options for your customers will be a smart option. You should consider having a payment solution for collecting the payment faster and online payment will solve this problem. Traditional POS machines might be working fine but having more options will improve the payment experience.

     

    Hope this helps you in choosing the right payment gateway if you are still confused just drop us your query our expert will get in touch with you.

     




      Select Payment Gateway:


      We also provide payment gateway integration of top payment gateways at best market rates. 

      No website

      How to Build Online Business without a Website?

      Planning to start a new online business, but do not want to go through the hefty process of website building?

      We are here to solve this problem, there is no need for a website to start an online business.

      Back in the old days, when internet access involved a dialup connection, there was no other choice for companies but to sell their products and services through the traditional method–a website. 

      If you wanted to have a successful online company, there was a time when you had to have a website. You either had to employ a developer, designer, and marketing specialist to get your website into the business model or learn the truth yourself to make money.

      Is the website really necessary for Online Business?

      Not really, you can start your business without a website by sharing your digital catalog on social media and WhatsApp. This is a budget-friendly way of marketing your business. Also, you can save the cost involved in creating a website for which you hire a website developer, hosting domain and apart from that yearly renewal of the domain. 

      When you plan to create a new website for your business, you will come across several terms like domain name, hiring a website developer and yearly renewal, maintenance of website and so on which increases the hassle and cost of creating the website. Many businesses quit before setting up the base. There are other alternatives to a website.

      Related post: How to start an Online Business?

      How to start your online business without a website?

      There are two ways to start an online business without a website:

      1. Online Store.
      2. Page Builder.

      Online Store: 

      online store

      The online store provides the company with a one-stop e-commerce store to sell its products and services. On the online store, you can sell any number of products. Simply register and start adding the items to the store.

      Online Store allows you to create a free web store with built-in payment options and a shopping cart in minutes to help customers buy multiple items in one go. Check out the online store features of Digital Payment Guru. Payments and shopping cart are included in your online store. To grow your company, you also get data-driven insights and a rich app store.

      An online store is unlike a website, it doesn’t require you to hire a developer, a yearly renewal and maintenance.

      Also read: Payment Gateway features to grow your business.

      Page Builder:

       

      page builder

      Using Page builder, you can create a quick one-page website for your customers to scan before redirecting them to a payment link or online store. Customize and layout your website using our gallery Download photos, add pay buttons and upload videos You can watch the short tutorial here to understand the process of making a page creator.

      You don’t need a full-fledged website to begin your online business. In two steps, with one of our tools, you can start your business and start selling.

      When you start a business without a website, it’s good for your brand. You can consider creating a website once you bring in the followers, the revenue, generate sales and get the word of mouth to go smoothly.

      smart billing

      Smart Billing

      Smart billing lets you create custom subscriptions for your customers and receive recurring payments. Generate personalized invoices to receive your customers ‘ payments on time.

      We provide an easy-to-use, fast & automated platform for SMEs that charge their customers with rentals to create subscriptions & charge customers based on the billing frequency & billing cycle you create.

      Subscription:

      Subscriptions are essentially automatic transactions where a customer authorizes a service provider / dealer to auto debit fixed amounts at regular intervals as determined by the contract. Digital payment Guru provides merchants with an automated, trouble-free platform where they can create recurring payment schedules for their customers, monitor the billing cycles and receive instant alerts about subscription activities. The only thing traders need to do is connect their respective plans to their customers and track their subscription activities.

      Our recurring model lets you build subscription forms like Fixed billing & Metered billing.

      Related Post: Everything you need to know about Recurring Payments

      Fixed Billing:

      You can charge your customers for the items or products / services that are fixed in this type of billing. You can set the billing frequency and the billing period as per the plan allocated to your customer.

      Let’s say you create a one-year plan subscription for your customer. Therefore, for the items/services you provide to your customer, you can set the billing rate to receive payments from your customer. This frequency can be daily, weekly, monthly, yearly, as you choose. The next thing that has set the rate is to set the duration of the billing cycle. This will determine the number of times the customer pays for your service.

      For example, you want to create a broadband subscription for 1 year and want to collect the money every month. You will have to set the billing frequency to ‘monthly’ and billing cycle as ’12 months’. Now, your customer will pay you every month for 1 year.

      Metered Billing:

      In metered billing, according to the use of the products / services you have provided, you charge your customer. The specification of the billing cycle & the billing rate for the billing meter is identical to the fixed billing as mentioned above.

      Only difference here is that at the end of the billing cycle, you charge the customer according to the use of your customer’s items / services. So you charge the customer on the last date of his billing frequency, i.e. on the last day of the month, if there is a metered billing subscription for 12 times per month. You can easily add products and update your plan according to the use of the customer and pay it accordingly.

      Manage Subscription from Dashboard:

      You have a dashboard that allows you to easily manage and track all the subscriptions you have made. Based on your operation, your subscriptions will have certain status. If you’ve just created a subscription and have not delegated it to any client, the subscription will have the status of’ draft.’ Likewise, subscriptions will be given, charged, unpaid, expired, stopped, cancelled.

      You can handle all of these subscriptions from a single dashboard. In a few clicks you can even send payment notifications to clients.

      Quick Invoices:

      Create online invoice and send invoices to your customers quickly via email & SMS and just wait for payments in your bank account. Share the customer invoice payment links and allow them to pay online. It would be easy to prepare an invoice as your customers & products are already made. To start with, you must create an invoice number that will be unique to that specific invoice. In addition, simply select the customer to whom you wish to send an invoice. Pick the billing & shipping address of the customer that you entered (when creating database customers)

      Provide Multiple Payment Options for your Customers:

      There are often cases where consumers prefer to make partial payments to you. Keeping this in mind, we will allow you to create splits on your invoice’s total amount payable. For example, if your invoice’s total payable sum is Rs.1600, you can build splits of let’s say Rs. 400 each. In this way, your customer can pay the sum of Rs.1600 in 4 splits (each of Rs.400) which will enable your customers to increase their flexibility in payment and retention of customers.

      Invoice Management:

      From the dashboard, you can easily access every single invoice you build or issue, or just draft & save. You can access and edit the invoices that you created and did not issue to any customer.

      Smart Billing advantages for retailers Receive transactions in a timely manner Well-predicted cash flow, Strong retention of customers, Receive fast and safe payments with acknowledgment, Real-time payment alerts.

      Digital Payment Guru provides smart billing that simplifies the accounting system efficiently, with ease of operation in a timely manner and removes the manual audit of transactions to a greater extent.

      mobile pos

      Advantages of Mobile POS

      A mobile POS system consists of POS applications that can be installed on Windows or iPad devices, allowing the workers to communicate with customers wherever they are in your shop.

      In a recent survey, 52.8 percent of shoppers said they’re searching for tablet-carrying retail staff; meaning they want the best technology for your squad.

      So, what market advantages can these mobile point selling systems bring to your company?

      Minimise walkouts and showrooming

      As soon as your customer walks in your store, they are looking to confirm that the product meeting their requirement is readily available in stock, know the cost of product, and answer some relevant questions to help them decide whether they want to purchase.

      Shoppers frequently feel reluctant to reach the counter to ask a question. Most will simply go out (often engaging in showrooming) if you don’t quickly present to them this key decision-making information as they browse your store.

      You can intercept the process with a Mobile POS solution and proactively engage the customer, armed with all the information in your POS system to make the sale easier.

      The integrated mobile point of sale program empowers the employees to quickly find specific items and to provide real-time inventory availability, pricing and a host of other product information. It will use Google-like fuzzy matching so that workers are assured that their searches will return specific products or provide the closest match to offer a selection of alternatives, increasing the likelihood of winning the deal.

      When providing a great shopping experience, the ability to quickly pull up product information and pricing specifics when engaging with the consumer is crucial.

      It also allows the employees to close the sale with enticing deals that will not weaken the bottom line.

      Where there is no inventory of appropriate items in store, the workers can see what is available in other locations in real time and arrange automatic stock transfers for home delivery and pick-up from other outlets.

      You can even integrate in-store display browsing with all the stock in your store network that the customer can search and make quick purchases.

      Related Post: Why Refunds take time?

      Cross sell and Up sell to maximize the basket size:

      An innovative Mobile Point Sale platform allows the employees to engage consumers in the shop they are interested in, and then quickly identify and offer them a selection of up-selling and cross-selling items to increase basket size. Staff can easily identify what items to choose for up-sell / cross-sell is specific to each situation / customer. This takes into account the old stock, the items labelled and the inventory available at other locations or outlets.

      Drive named sales and reward loyal customers

      Capturing customer information is easy and reliable to see your phone screen and to correct any possible errors on your mobile POS display.

      You can encourage the customer to provide these details using built-in loyalty programs. Your staff can then pull up demographic information for occasional shopping / cross-selling on their mobile POS such as age and gender when they visit. For example, they could cross-sell for men and children when they know that a customer has a husband and children. If the customer has a buying history, the sales team can take advantage of previous purchases to suggest items related to past sales.

      Related Post: How to prevent online fraud?

      Selling via pop-up stores

      A mobile POS device is your ideal solution when you sell at trade shows, car park sales, markets or pop-up shops. With the Mobile POS app, stock levels between all your stores, including your eCommerce webstore, are changed in real time, giving you a clear idea of what to sell at any time.

      Lower shrinkage in-store

      Because your sales team has more time to engage in-store buyers, shoplifting, operational mistakes, and retailer fraud may decrease common shrinkage. With less time behind the counter, staff may concentrate on other sales tactics to boost profits.

      Reasons for Online Payment Failure.

      Digital Payments in India has started becoming a primary platform for businesses to make and receive payments for the services they provide. With the development of Internet Technology, there is increase in the scope for digital payments. For the customer who make an online transaction through any mode of payment have an immense amount of trust in digital payment, in this case payment failures can be frustrating as putting their bank details online is not a joke.

      Payment failures can happen because of an error on users side, it can also be called as an incomplete payment. Error at users end can be incorrect card details, incorrect OTP, or insufficient funds in users account.

      Consider an example, Son wants to make an online transaction and he chooses debit card option to make the payment. The debit is registered with his dad’s details and to authenticate the transaction an OTP will be sent on the registered number which belongs to his dad. The OPT needs to be entered within 15minutes failed to do so the transaction will be timed out and will be considered as an incomplete transaction.

      Payment Processing:

      The payment processing takes place in the following way:

      payment process flow

      When a customer makes a payment, there are several steps that are executed while transferring the payment to merchant. Even a single glitch between these steps can cause payment failure. In the entire payment process where the customer, merchant and banks are involved, failure at any one end can cause payment failure.

      Related Post: What is Online Payment Processing

      The payment failure can be caused due to:

      1. Bad Internet Connection: For the transaction to execute successfully a stable internet connection is necessary. If the internet is fluctuating, the payment process is affected and closing the payment window during the process can cause payment failure or incomplete failure.
      2. Authentication Failure: Entering wrong card details cause Authentication failure. Sometimes the OTP is not received on time and the session timed out, this can cause incomplete payment. Online payment requires the user to enter things manually which is time consuming at times and also increases the chances of wrong input.

      Following errors occur for the transaction failure:

      1. Transaction cannot be authorized: If the password or OTP is wrong.
      2. Signature validation failed: When the 3d signature is wrong. 3d signature is used by the buyer to validate the transaction made by the user.
      3. Payment not captured: Due to insufficient balance in account or due to incorrect CVV.

       For Example: If you are making a net banking transaction, there are two passwords for the entire process. 1st password if for login into the net banking portal and the other is for authenticating the transaction. If even one password is wrong the transaction is failed. This is similar to the manual error that occur during the UPI payments or card payments. The amount is not deducted form your account and you receive a message that “payment cannot be processed”.

      1. Technology Failure: Online payment process has several steps for the merchant to receive payment from the customer for his products or services. (issuer bank, acquire bank, payment gateway). While proceeding with the payment you need to choose the payment mode like Credit/Debit card and fill in the details. Once you finish filling up the details the data is sent to payment gateway system which then transfers the data to a bank associated with a card. Bank creates request with payment system like visa or master card depending on the card used. These payment systems check if the customer has required amount on balance to pay for the purchase, if yes the bank directly connects with the merchant and the amount is transferred to merchants account within several days. Failure at even one step can cause can cause payment failure.
      2. Downtime: If there are several transaction happening through the system and the payment gateway is unable to reach customers bank to approve the transaction, the payment fails. Downtime of the issuer, acquire bank or payment gateway of merchant can cause payment failure.
      3. Security: Issuing bank have an aggressive fraud detection technique that block the transaction that they feel are not normal to customers spending behavior. This is done by analyzing the transaction history of customer and the transaction is blocked If it doesn’t conform with the customers past spending behavior.

      Related Post: Why does Refund take time?

      There is no worry if the amount is deducted from your account on payment failure. Your amount is going nowhere, it will be refunded to your bank account after the bank analyses exactly on which step the payment process failed.

      Digital Payment Guru provides payment gateway integration service of top payment gateways like PayPal, Paytm, PayU, Instamojo & Atom at best market rates. If you are confused about which payment gateway to choose from, we can help you choose the best payment gateway for your business by analyzing your business requirements.

      payment processing

      What is Online Payment Processing?

      From an earlier time, even before the invention of money, people exchanged goods and services in return for some mode of payment. Mode of payments was not financial as money didn’t even exist at that time instead they followed the barter system and livestock exchange. With the evolution of technology payment systems have changed drastically making financial transactions possible at any time and from anywhere.

       

      What is Online Processing?

      We are now in the Online Payment Processing era lets dive deeper into it and know what exactly online processing is. Any transaction done electronically is known as an online transaction. It can be through a mobile device, or a computer or POS machine. It requires firstly an internet connection then a secure ecosystem and encrypted information or your credentials.

      The most debated topic today is the war between online and offline payments, wherein online payments seem to be winning by far, here’s why,

      • Online payment is quick and easy, a huge amount can be transferred in seconds.
      • Ease of managing the payment records thus reducing online fraud.
      • Payment gateway integrators like Digital Payment Guru make the entire payment process hassle-free with easy payment gateway integration into your existing system thus increasing your success rate.
      • International transactions can be done from one place and without facing different currency problems.
      • Payment can be sent and accepted 24*7 without any interventions.
      • An online business can offer multiple payment options to their customers so that customers can make payment with the desired payment method. This can help online business to retain your customers.

      Related Post: Everything you need to know about payment gateway.

      Is Online Payment Processing A Necessity?

      Earlier, the Organization used paper checks for making payments. Maybe because it was the only mode of payment available and also it saved on the cost. After the introduction of Fin Tech companies, these organizations have started using the online payment modes as a primary way of payments as it saves on time and also reduces the hassle of managing the paperwork. It also eliminates the risk of fraud as all the payment records are easy to maintain.

      A recent study states that 81% of organizations prefer online payment compared to offline payment modes because of its advantages and thus it can be concluded that online payments are no more a choice but a necessity. So, if you want to improve your business and retain your customers, it is important that you provide what your customers want. Thus, switching to online business can benefit your business.

      payment processing

      The need for Online Processing for your Business

      Are you new to the online business or you have just developed an e-commerce website? Apart from design and smooth interface, you will need a secure and trusted payment gateway. Now that you know what online processing is, it is time for you to choose a payment gateway for your business. Before getting a payment gateway for your business lets discuss its need for your business.

      • Secured Payment Gateway: Payment gateway is highly secure and the customer’s details are encrypted eliminating the risk of fraud.
      • 24/7 Support: Customers can make a payment anytime and from anywhere for your goods and services.
      • Shopping Cart: Payment Gateway provides your customer with a shopping cart feature for better payment experience.
      • Payment Tracking: Payment gateway provides tracking of payments for past and present transactions, maintaining the record in one place.
      • Multiple Payment Modes: Customers can make payment through the desired payment mode thus providing ease of payment for the customer.
      • Platform Independent: Payment can be made from different devices like computers, mobile, and tablets, etc.
      • Faster Processing: Online payments are quicker and more convenient than offline payment as it avoids the hassle of waiting in the queue for making payments.

      Related Post: How to start an Online Business?

      Every payment gateway has its features and plugins thus it is necessary to analyze your business needs and choose the right payment gateway that is suitable for your business.

      Digital Payment Guru can help you choose the best payment gateway for your business by analyzing your business needs. We provide top payment gateway like PayPal, PayU, Paytm, Instamojo and Atom at best market rates. Visit our website and get started.

      UPI or credit card?

      Recurring Payment via UPI or Credit cards?

      Does your business require a collection of online payments for products and services at a regular interval?
      Payment gateway providers make it easier for customer with Credit card option. With UPI coming into a lead, it would be a great contender. Which one should you go for recurring payments? Let us find out.

      What are Recurring Payments?

      In a recurring payment model, the service providers deduct the purchase amount from the buyer’s account at regular interval which is set up automatically.
      There are multiple recurring payment businesses, some use an invoice method wherein a payment is automatically deducted against an invoice and others use Subscription Model business wherein you only pay as you use the services or product.

      Related Post: Everything you need to know about Payment Gateway.

      How Recurring Payment Work?

      To enable recurring payment, a customer must save the card and grant permission for the recurring charge. Stored payment data can then be used used to automatically process payments for repeat services or subscription model business. Payment gateway service providers can automate all types of business billing needs. Some have payments based on invoice cycle others initiate and manage recurring payments. Solutions are different for both types and thus it is necessary to identify your billing needs before getting a recurring service.

      What is UPI?

      Unified Payment Interface (UPI) is a single platform that provides different banking services and features. If your bank is UPI enabled, you can create a UPI ID that can be used for making transactions. A transaction can be made using Aadhaar number, Mobile Number, and Virtual Payment Address (UPI ID). UPI allows the user to transfer and receive money from one bank account to another by using a smartphone. It enables the transfer directly from a bank account to the merchant and also handles the basic banking activities. UPI is a revolution that can be an alternative for e-wallets, in other words, UPI is the best thing in the online money market.
      According to NPCI, in March Rs.1.33 Lakh Crore of transactions is made via UPI which is 24% increase from February 2019.
      In 2018, UPI launched its second advanced version UPI 2.0 with more features but NPCI did not add recurring payments support in it. This feature could be coming in UPI 3.0.
      The feature can enable customers to issue a one time mandate recurring payments for services from the merchants. The best example can be automatic payments of monthly bills and subscription-based services. RBI refuses to release these features for UPI in fear of its misuse.

      Related Post: What? How? Why? about UPI.

      UPI vs Credit Card for recurring payments?

      online payment

      Business prefers to set up recurring payments against Credit/debit cards. Some global businesses like iTunes set it up on debit cards with One-factor-Authorization.

      Unified Payment Interface:

      • Recurring payment support for UPI is coming soon.
      • A customer has full control over authorization for the requested payment.
      • In the case of refunds, the merchant and buyer communicate directly.
      • UPI is will be available with the banks that do not provide recurring payments.
      • A recurring payment can be availed by anyone that has UPI.

      Credit Card:

      • Recurring payments are available in credit cards.
      • Money is debited Automatically without customer’s involvement.
      • In the case of refunds merchant also has to deal with customers bank.
      • Recurring payments can be availed by those having a Credit card.
      • A recurring payment cannot be availed with banks that do not allow it on a card.

      high risk business

      What is a High-Risk Business?

      Some Online Businesses and industries are treated as high-risk businesses by payment processing companies. They are categorized as high-risk businesses depending on several factors such as the chargeback ratio of a merchant, times the product is returned or payment processing history. Considering these factors, payment processing generally does not prefer to provide their services to high-risk clients.

      High-Risk Factors:

      Merchant account provider and Payment Processors consider a business as high risk if it has a higher chargeback ratio, The customer makes a credit card payment and cancels it when the merchant has received the payment, Refunds for the returned products, credit card fraud. Companies having a bad credit history and those which provide no guarantee for loans are also considered as high risk.

      Related Post: How to make E-Commerce Payment Secure?

      What is High-Risk Payment Processing?

      high risk

      For any business wanting to start an online payment first needs to have a merchant account. A merchant account has 2 types, low-risk merchant account, and high-risk merchant account. If you run a low-risk business which means your business is not involved in any of the above-mentioned factors then you can easily approach the payment gateway service providers and they will easily offer their services. But, it is not the same with high-risk business. The high-risk business has all the factors mentioned above because of which such businesses find it difficult to get paid service providers as they do not want to serve such businesses.

      The business that is categorized as high risk has a higher possibility of an increase in a chargeback. This also leads to higher payment processing fees which relate to risks involved with such businesses.

      High-Risk businesses pay high chargeback fees, payment processors put a reserve on merchant account which can be used by acquiring banks to compensate with the chargebacks. With this practice, an additional layer of protection is on offer on the banks side against any unexpected behavior from the merchant.

      If you run a High-risk business the best solution is to maintain a good relation with payment gateway providers that specialize such businesses. These payment gateway providers can help you monitor the suspicious transaction.

      Related Post: How to start an Online Business?

      Types of business considered High Risk:

      When you apply for a merchant account, you go through an underwriting process with a payment processor. Different processors have different standards, so even if there are some similarities in your business but the following things that can put your business in a high-risk category.

      • Bad Business or Personal Credit Score: Bad credit score is a negative impression for payment processors as it is considered that you are not good at managing your finance or more susceptible to fraud.
      • Merchant Account History: This shows your record stating a history of chargebacks or frauds with another merchant account provider, if there are any it will create a negative impact on your application.
      • Years in business: The older business you have the better impression you have on the merchant account provider. Merchant account providers are more careful with the customers having less experience in the business.
      • Headquarters Location: If you provide service to another country where your headquarters isn’t then you are more prone to fraud.
      • Questionable Products: This completely varies for different payment gateways, but the best example is gambling, as it is illegal in some countries.
      • Huge purchase amount: If you have an unusually high average purchase amount, there are more chances of fraud because of which it can be considered as a high-risk business.

      It might seem a bit unfair for High-risk businesses as payment processing is expensive for such businesses. Many payment processors will not want t work with you but also there are many reputed service providers that can take your business. Do some research, evaluate your ideas and be careful with the term before signing.

      online business

      How to start an online business?

      Many people want to start selling their products online but, there are many questions that run into their minds:

      1. How to get started?

      Well, initially you should analyze your position in the market and how you are different compared to others. To do so there are various factors, some of them are:

      • Price
      • Marketing
      • Features
      • Technology

      The moment you get to know where you stand in the market, the next step is to convey your products to people. You can do this by talking with people about your products, by creating your website or by creating a portfolio of your business and sharing it on social media so that your business reaches to maximum people. This should be your first step as it is the most effective.

      Related Post: How is payment gateway beneficial for B2B Companies?

      1. How to increase your products reach?

      Not all people are active on social media or are familiar with social media but want to increase their business reach. Thus, it is important to analyze what people want, also, if your product has some features that others don’t then stress on that particular feature more than others. The most efficient way of getting started is:

      • Ask the people who have used your products to share their experience. It is always a better way of promoting your business from your user’s experience than by yourself alone.
      • Create your business page on social media and invite your friends to like your page. Post regarding your products on your page and ask your friends to share those posts.
      • Create content for your product, this content can be shared on relevant business websites where people usually search for the products that you are offering. This will also give a backlink to your business which can help in boosting your business up.
      • Write effective blogs with your success story, share such blogs on blog sharing sites like a medium where people always look up for motivating blogs. Also, share your blog on social media so that it reaches more people and they can share your story with others.
      • Run Facebook ads and Google ads for your products, Digital Marketing is the best way to increase your business reach. Also, it is a cost-effective and easy approach.Digital Marketing
      • Finally, references are the best way to boost your business. You can get as many leads and customers from your campaigns but there are only a handful of customers that give you an effective business. Always take feedback from such customers because they will definitely refer their friends which makes a lot of difference from getting leads through campaigns. Remember, Client Acquiring is done at the start of the business but Customer retention is much important for the growth of the business.

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      1. How to remain competitive in the Market?

      Once you have achieved your position in the market, now it is important to maintain your position and not letting it harmed by competitors. To do so, always have a good team to handle different aspects of your business rather than you handling everything alone. Get a payment gateway integrated into your website to make your website payment-enabled so that people can make payment for your products from the website. Make sure the payment gateway provides multiple payment options providing convenience for your customers to make the payment from the mode they are comfortable with. Ensure that your team brings something innovative to the desk so that more customers are attracted to your products.