So we all have heard of online recharge and payments. And most of us do the same at least once a month for making online payments against bills. But how many of us know the process that is happening at the backend between the different systems, networks, and technologies. It sure looks very easy and uncomplicated from the buyers’ point of view but is it that simple?
It is surely not. Briefly, the process has been detailed out here.
- The seller or the merchant first needs to set up a merchant account. This account is a type of account that is armed to accept all types of payments – Visa, Mastercard, American Express, any credit or debit card of any bank and even net banking.
- A payment gateway connects the merchant’s website or e-commerce site and his bank. There are two types of payment gateway – direct and indirect. In the former case, the customer never leaves the service provider’s site and enters his card details or bank details to recharge the utility service in the merchant e-store only. Such websites are SSL (secure sockets layer) encrypted. Under the latter case also called hosted gateway, the customer is sent to a payment processing site where he conducts the financial transactions. Once the customer makes the payment, he comes back to the e-commerce site to complete the payment and the recharge process.
Under all circumstances, the payment gateway (direct or indirect) needs to adhere to PCI (Payment Card Industry) safety standard compliances.
- The advantage of the third party recharge resellers such as Phonepe, Mobiqwik or Paytm is that they offer services related to accepting payments online to merchants or service providers, and hence the merchants do not need to create separate merchant bank account for themselves. The resellers do it by attaching the bank of the merchant to the bank of the buyer. This is the reason why payments are made instantly when using reseller sites or App. These resellers are therefore also called payment aggregators as they accept payment on behalf of a number of service providers.
Modern technology like the internet has surely made life much easy and comfortable. But the fact is that the buyer or the customer is sharing personal information online which can be hacked or stolen when it passes through a soft target area. It is therefore important to use a reseller or an e-commerce site that is secured, and the payment gateways encrypt data in a way that hackers cannot target them. Cybercriminals are intelligent technical people much smarter than you and me. Therefore remember the following to carry out recharge payments in 100% safe and secure environment:-
- It is best to go ahead with sites – service providers or resellers – who have to carve a niche for themselves in the market.
- It is always advisable to use a credit card rather than a debit card or Netbanking that connects directly to your bank account
- Look out for genuine offers and deals.