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A payment aggregator is an external service provider that simplifies the process of making online payments for clients and accepting payments for enterprises. This service allows customers to choose from a variety of payment methodsincluding debit and credit cards, non-cash EMIs, UPI, bank transfers, e-wallets and e-mandates. In addition, payment aggregators facilitate payment process different parties, such as partners, employees, suppliers, and authorities. In order to use a variety of payment methods on your own, your business will have to work with different banks and non-bank financial companies (NBFCs). Another advantage of using payment aggregators is that companies avoid the need to develop and customize technically complex checkout pages that are compatible with different payment methods.
Key features of payment aggregators or online payment aggregators
Payment process plays an important role in the online shopping experience for customers, making payment aggregators an invaluable tool for businesses to provide a seamless payment experience for customers. Payment aggregators offer a number of benefits, including secure payment data processing and fraud detection. They also provide customers with access to multiple payment methods and ensure a smooth checkout process.
Easy registration, integration and management of sub-merchant accounts
In e-commerce, services are often provided through collaboration between companies. Suppose an asset management platform hosts several asset management companies (AMCs). In order for end users to invest, the platform must provide the ability to make payments to the AMCs. If the platform cooperates with a payment aggregator, it becomes a merchant and can create sub-trading accounts for AMCs. This allows the platform to manage payments on behalf of the AMC. The AMC's account with the payment aggregator, which acts as a sub-merchant account, is a current account. AMCs can conduct transactions and manage their account using their own API keys and a separate control panel.
In case of cooperation with a payment aggregator, you can add sub-merchants by specifying their data or providing referral links through your control panel. Partners can also connect sub-merchants via API. Sub-merchants can go through the KYC process through the partner's control panel.
Secure processing of online payments
Secure payment processing is a critical aspect of financial transactions. Information related to financial transactions requires special attention and protection, as its leakage can cause serious damage to your business.
- Investing in high-quality infrastructure, ensuring the reliability and security of operations.
- Payment processing without storing confidential information, which reduces the risk of data leakage.
- Use encryption to protect sensitive data from unauthorized access and intruders.
- Using tokenization of digital card numbers to minimize the possibility of leakage of information about payment instruments.
- Compliance with security standards set by leading organizations such as the Payment Card Industry (PCI) and the International Organization for Standardization (ISO), which ensures compliance with legal requirements and regulations in the field of payment system security.
Detecting and preventing fraud in online payments
Detecting and preventing fraud are critical aspects of ensuring the security of financial transactions. If a company or individual is deceived and forced to disclose information about their accounts and passwords, this can lead to loss of funds. To counteract this risk, payment aggregators recommend the following approaches:
- Aggregators analyze customer payment history and previous fraud cases to identify potential threats.
- Using machine learning technologies, they identify common patterns in customer payment transactions and signs of fraudulent schemes.
- They comply with security standards such as PCI-DSS and RBI regulations, ensuring that card data is secure and processed in accordance with guidelines and regulations.
Variety of payment methods and payment options
A limited choice of payment methods can create obstacles for customers in the payment process. By integrating with a payment aggregator, you expand your payment acceptance options to include debit and credit cards, NetBanking, UPI, credit or debit card EMI, e-wallets, cardless EMI, bank transfers, e-mandates, Buy Now, Pay Later (BNPL), and more.
Quick calculation for conversion and online payment
Delays in making payments can cause customer dissatisfaction and disrupt cash flow, which can lead to temporary financial difficulties and even losses due to lack of working capital. To solve this problem, payment aggregators offer instant payments even after hours, weekends, and holidays. Funds will be credited to your account within a few seconds. You can also choose the option of quick same-day payments for a small fee, which will allow you to effectively manage your cash flow.
Convenient online payment process
A user-friendly checkout process is key, as complicated steps can deter customers and lead to a failure to complete a transaction. Despite this, various authentication methods, multiple payment methods, and different policies and regulations make the task more complicated. The main task of a payment aggregator is to provide fast and convenient payments, and it is ready to invest the necessary resources to create a seamless checkout process.
24/7 support
Payment aggregators invest significant resources in customer support teams to provide solutions to various types of problems and obstacles that users may encounter. This includes inquiries about the status of payments, reviewing previous transactions, reporting fraud, raising disputes, and technical assistance, such as setting up API keys. All of these requests are handled by experienced and qualified specialists who are patient and professional in their dealings with customers.
The difference between a payment aggregator and a payment gateway
The main differences between a payment aggregator and a payment gateway are functionality and how they work. A payment aggregator is a service that allows businesses and online merchants to accept payments from customers through various payment methods, such as credit cards, e-wallets, and others. It integrates multiple payment methods into one system, providing convenience and flexibility for both merchants and customers. A payment gateway, on the other hand, is a technology solution that processes payment information, transferring it between payment systems (e.g., a bank and a payment card system) and an online store or website. It ensures security and encryption of data during transactions and processes payment authorization requests. Thus, a payment aggregator is an integrated payment system, while a payment gateway is part of the infrastructure that enables data transfer and payment processing.
How payment aggregators work
Payment aggregators are special payment systems that provide integration of various payment methods for online merchants and businesses. They provide payment gateways that connect online stores and other online platforms with banks, payment systems, and financial institutions.
This is how payment aggregators usually work:
- Integration: Online merchants integrate the aggregator's payment gateway into their websites or apps.
- Choice of payment methods: The payment aggregator offers various payment methods, such as credit and debit cards, e-wallets, bank transfers, UPI, and others.
- Transaction processing: When a customer makes a purchase on a website or app, the payment data is transmitted through the aggregator's payment gateway.
- Data transmission: The payment gateway transmits the transaction information to the customer's bank or payment system to authorize and process the payment.
- Payment confirmation: After successful payment authorization, the bank or payment system returns a payment confirmation through the aggregator's payment gateway.
- Notification to the merchant: The payment aggregator notifies the merchant or business about the status of the transaction and transfers funds to their account.
Thus, payment aggregators play a key role in ensuring the security and convenience of online payments by providing simple and efficient tools for conducting transactions online.