Which is the best payment gateway in India?
Answer by Ravi Krishna:
Though for a startup it might be a good idea to go with a single provider like CCAvenue/EBS as you grow its important to build redundancy. Hence one should integrate with at least two payment gateways.
Another thing to note is that aggregators like CCAvenue/EBS are just an intermediary between banks/credit card processor and the merchants. Removing this intermediary will improve payment success rate and reduce commission charged. So as you grow its important to integrate directly with credit card gateways like Axis bank/HDFC/Citi/ICICI. You will be surprised with success rate improvements.
After credit cards you largest chunk of traffic will be SBI debit cards and Netbanking (~80 million cards in circulation). For SBI debit cards billdesk and CCAvenue are the two options which still offer ATM Pin based authentication which has much higher success rate than 3D secure authentication.
For net banking CCAvenue/EBS and Techprocess are the available options.
You will also need to invest on fraud monitoring systems to reduce your liability. Your payment gateway can provide some help here. It will also be useful to explore some third party solutions here.
And finally payments is all about extra half percent from the system (note that this extra half percent directly goes to your bottom line). So you should set up 24/7 monitoring and take immediate action in case of issues.