Payment Gateway-Is it necessary

Payment Gateway-Is it necessary.

Payment Gateway-Is it necessary for an eCommerce Site, to have a Payment Gateway, for receiving payments from its customers.

Today’s Post will might convert few of acquaintances/friends/colleagues/ into my enemies.
But, I am convinced about my idea, and its ability to transform eCommerce sites in our country.

The essential feature of eCommerce site, is an stable Payment Gateway, to transfer money from their customer’s pockets to the merchant pockets.

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The most common Payment Method’s of an eCommerce Site are:-

American Express Card
Visa/Master Debit/Credit Card
Automated internet banking (selective banks

Few Sites, in addition to the above also offer:-
Cheque Deposit/ Cash Deposit/Demand Draft - - (in specified locations)

One more option, which is not yet explored by eCommerce Sites is

.Bank Transfer-from any bank.
I will call this facility as NEFT PAY
The above facility harnesses the power of NEFT to move funds from the customer’s accounts to the merchant account.

The benefits of NEFT PAY to eCommerce Sites are
01)    No need of  investment in Payment Gateway
02)    No fear of Chargeback.
03)    No Payment of any commission to Payment Gateway Providers.
04)    No fear of any Security breaches by own employees or Payment Gateway employees.


The benefits of NEFT PAY to Customers are
01)    Shop with own money, instead of resorting to credit card outstanding.
02)    High safety levels, as Credit Card/Debit Card Numbers need not be mentioned anywhere.


NEFT PAY will not be viable, in few eCommerce Sites like Air/Rail/Bus ticketing, where the commodity is in high demand, and is on first come-first serve basis.

Such sites at the most constitute 20% of all eCommerce sites.

Hence, NEFT PAY can be used in 80% of the eCommerce Sites where the goods can be shipped/delivered on confirmation of money received by the Merchant. 

eCommerce Sites- Harness the power of NEFT

Meal Cards – The Income Tax(IT) Missive

Meal Cards – The Income Tax(IT) Missive

In continuation of my post of 27^th August, 2009, on Meal Cards,

http://prashantnepayments.blogspot.com/2009/08/meal-cards-ing-vysya-bank-new-player.html

Please find enclosed the relevant link, regarding new IT Provisions, governing Meal Cards

http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/htmpage.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/Notifications/IncomeTaxAct/2009/Not1_2009.htm

  

The major point in this Notification is that

QUOTE

vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees

UNQUOTE

Of course, the Income Tax authorities must have had a valid reason for the above clause, or they might have been mis-informed about the true benefits of Meal Cards.

I hope the second part is true, and the relevant Institutions, have taken up with Income Tax authorities and Reserve Bank of India, to popularize this ePayment Product.

In fact, I think there should not be any IT restrictions on this ePayment Product, as the complete transaction details are electronically stored, and the Issuing Institution, will have the records safely stored.

These electronic records can be called by IT Authorities, in case of any need.

There is some confusion, as to whether these provisions will apply to Meal Cards only, and not to Vouchers like Sodexho, Ticket etc.

If so, than, the Meal Cards will not be popular in our country, and Banks/Institutions will find it difficult to market this ePayment Products.

Topic of the Week- Chandrayaan-1

Topic of the Week- Chandrayaan-1

Though according to numerous reports in Indian media, contact was lost with the lunar orbiter Chandrayaan-1 abruptly -- in the middle of a communications session with Earth -- at 1:30 Indian time on Friday (Thursday, August 27, at 20:00 UTC), it is not the end of the road.

According to ISRO has completed a majority of its objectives, and the data collected will be useful for C-II launch. By 2014, Indian Space Scientists plan to launch an Indian into space and onto Moon by 2020.

A very brief history of Indian Moon Mission

• The seeds for the Chandrayaan-1 was sown on during a lecture on May 11, 1999, by the than ISRO director, Dr.Krishnaswamy Kasturirangan.

• Originally called Somayana, the Moon mission was approved in 2003.

• It was in that year that then Prime Minister A B Vajpayee re-christened it Chandrayaan during the Independence Day address.

• October 2, 2008, the spacecraft was transported by road from Bangalore to Satish Dhawan Space Centre, Sriharikota Range, Andhra Pradesh.

• At 6-22 AM on October 22, 2008, it was hoisted into space onboard a PSLV rocket.

• It entered deep space (distance of 1,50,000 km from Earth) on October 26.

• The moon-craft reached the lunar orbit (100 km from Moon) on November 12.

• The Indian tricolour painted on a 30-kg instrument (Moon Impact Probe) landed on the lunar soil on November 14, birth anniversary of late Prime Minister Jawaharlal Nehru.

• May 20, 2009, a snag onboard star sensors forced scientists to raise it to a new orbit 200 km from lunar soil.

• August 21, a unique joint experiment conducted by Chandrayaan-1and Lunar Reconnaissance Orbiter (LRO), to search for water-ice on lunar soil.

• August 29, 2009, Chandrayaan-1lost radio contact with ground station (Deep Space Network, Byalalu).

• August 30, 2009, Indian Space Scientists are determined to arrive at the Root Cause Analysis for the lost radio contact.

The cost of the Chandrayaan-1 was around Rs400crs, far less compared with its counter-parts. In a magnanimous gesture, typical of Indans, ISRO Chief Madhavan Nair, offered world scientists a chance to put their instruments onboard Chandrayaan-1 for free!!!!!1

Cheers to ISRO and to our fellow country-men

RBI Annual Report 2008-200 - Payment and Settlement Systems and Information Technology Chapter

RBI Annual Report 2008-2009

Reserve Bank of India, has released its Annual Report for 2008-09. The Annual Report is an important document to understand the nuances of Indian Economy.

The complete RBI Annual Report 2008-09, can be accessed at

http://rbi.org.in/scripts/AnnualReportPublications.aspx

It contains a number of Chapter’s and as ePayment follower; I am interested in  Payment and Settlement Systems and Information Technology Chapter.

Beginning this week, I will try to analyze the various parts of the  Payment and Settlement Systems and Information Technology Chapter.

Meal Cards – ING Vysya Bank-a new player

Meal Cards – ING Vysya Bank a new player

ING Vysya Bank, a Leading Private Sector Bank has introduced the Meal Card.

A brief articles of the occasion can be accessed at

http://www.thehindubusinessline.com/2009/08/22/stories/2009082251460600.htm

ING Vysya Bank’s Meal Card will be accepted at all Maestro Merchant Establishments.

It is be noted that in India, Meal Cards are being mainly issued by Private Banks. So far, no Public Sector Bank has introduced the Meal Card.

My guess is State Bank of India, Union Bank of India, Andhra Bank, might take the lead. Or Bank of Baroda, too could.

Let us wait and see, which of the Public Sector Banks, takes the lead.

What is a Meal Card:

Meal Card is a prepaid card designed to replace the inefficient paper voucher system in the market.

It is a far more operationally efficient way to provide your employees with a meal allowance and eliminates the logistical hassles associated with the procurement, stock-keeping and distribution of paper-based Meal Vouchers.

Meal Card’s	Paper Based Vouchers
1. No operational hassles in distribution to employees, issued once and reloaded again and again without any trouble	Monthly distribution of paper coupons, keeping track of stock and reconciliation together give rise to an operation nightmare.
2. Larger acceptance, freedom to use the card at almost 40,000 food and beverage outlets in the MasterCard network.	Limited access to only the few outlets specifically accepting such paper based coupons
3. Easier to handle, the Meal Card is a plastic card to be carried along with your normal debit and credit cards and presented for use anytime you need to pay for some food or beverage items.	Carrying the booklet of vouchers around, counting vouchers every time you need to pay for something is an unnecessary burden best avoided
4. Use your Meal Card for any denomination you want, don't worry if the amount is an odd amount	The Paper vouchers come in specific denominations and while paying you have to pay in those denominations thus resulting at times in loss of some change. Seen in accumulation this change comes quite a large amount, sometimes even the cost of a good meal.

Reserve Bank of India, has already laid down guideline regarding Issuance and Operation of Pre-paid Payment Instruments in India (Reserve Bank) Directions, 2009

The complete Document can be accessed at

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/RFGF280409.pdf

In brief, the RBI guidelines for clients affiliates and users

The RBI released the "Insurance and Operation of Pre-Paid Payment Instruments in India (Reserve Bank) Direction 2009" on April 27, 2009. These rules have become operative from July 27, 2009.

Accordingly, the Customers and Affiliates are required to comply with the following:

1. Institutions are required to maintain the full details of beneficiaries to whom Vouchers/Payment Instruments are issued.

2. Payment instruments upto Rs 50,000/- can be issued by you provided full KYC of the employee or beneficiary has been completed as prescribed by RBI guidelines.

3. Payment instruments can be issued upto Rs 50,000/- by carrying out customer due diligence. This should be done by companies/institutions by ensuring that they keep full details of the employees/beneficiaries to whom the payment instruments are issued.

4. Customers should make advance payment as the same needs to be deposited in Escrow Account on issuance of vouchers.

5. Customers and Affiliates need to comply with the Know Your Customer / Anti-Money Laundering & Combating Financing of Terrorism Guidelines issued by RBI.

However, recently Income Tax Department has issued guidelines, which might reflect on the growth of Meal Cards in our country.