Ecommerce Websites: PayU Money Payment Gateway for Individuals and Non-Registered Businesses
Integrating payment gateways for e-commerce sites usually require a business to be a registered entity i.e. a sole proprietorship, a pvt. ltd., etc. But here is an option for you to sell online and start accepting online payments even without registering your business. How is that possible? Well, here’s the solution. PayU Money is essentially a payment gateway solution for individuals and the following is a review of the payment gateway.
Q.How do I accept online payments if my business is not registered?
A. PayU Money is necessarily a savings account payment gateway for individuals. You can start receiving payments on your online store, even if your business is not registered. The only pre-requisite is, you should have a Savings Bank A/C. If all your documents are in order, you can start accepting online payments on your store in just 48 hours. But usually the entire process takes up to 20-25 days to complete.
Q. What is PayU Money?
A. PayU Money is a leading online payments solution company in India, which started operations in October 2011. And, since then it has grown into the fastest growing consumer payment processor in the online payment space. As of now, PayU Money boasts of having more than 1200 merchants on board.
Q. What documents are required to integrate PayU Money on the online store?
A. To integrate PayU Money on your online store, you only need to submit 3 documents, namely:
- Your Pan Card copy,
- KYC Document (Aadhar Card, Passport, Voter ID, Driver’s License), and
- Bank Verification Letter or Cancelled Cheque of Savings Bank Account
Q. What are the different charges levied with PayU Money PG?
A. There is absolutely no Setup fee or AMC levied with PayU Money. The only charge borne by you is the TDR% i.e. Transaction Discount Rate. Details of which are as follows:
|Different Charges||PayU Money Payment Gateway|
|TDR%||2.9% + Service Tax (12.36% of TDR Value)|
Q. How do these charges translate per transaction?
A. Given below are 2 examples to help you better understand the per transaction costs that will be borne by you.
|Transaction Amount||Rs. 100|
|Transaction cost||Rs. 2.9|
|Transaction cost||Rs. 5.8|
Q. Is the above transaction cost, inclusive of service tax?
A. No, the above costs are NOT INCLUSIVE of service tax.
So when service tax, i.e. 12.36% is levied on the above numbers, the transaction costs are:
|Transaction Cost||Rs. 2.9|
|Service Tax||12.36% = Rs. 0.35|
|Total Transaction Cost||Rs. 2.9 + 0.35 = Rs. 3.25|
|Transaction Cost||Rs. 5.8|
|Service Tax||12.36% = Rs. 0.71|
|Total Transaction Cost||Rs. 5.8 + 0.71 = Rs. 6.51|
Q. How long does it take the payment gateway to get activated?
A. If all your documents are in order, PayU Money offers immediate activation of the payment gateway i.e. within 48 hours of the PayU Money receiving the papers. But usually, the entire process takes 15-20 working days to complete.
Q. How does PayU Money work?
A. So here’s how PayU Money processes the transactions on your store:
- Customer A buys the product from your store and makes a payment
- PayU Money receives the payment on your behalf and sends you (the store owner) a notification about the same
- After receiving the notification, you dispatch the product to customer A
- Customer A receives the products
- You enter the Order Received details on your PayU Money Merchant Portal
- PayU Money sends a notification to Customer A to confirm order received
- PayU Money waits for customer to confirm delivery of the products for a period of 3 days. As soon as customer confirms, payment is transferred to your (the store owner’s) bank account. If customer doesn’t cofirm within the 3 days, PayU Money still transfers the payment to your account, at the end of 3 days.
Q: Why does PayU Money release payment only after they receive a confirmation from the customer?
A. In India, the payment gateway space is rather complicated; having a registered business and all makes it complicated. Two of the major pains of getting a payment gateway are:
1. Loads of paperwork needed to get a registered payment gateway for your business
2. High turnaround time after you have sent in your papers. It takes about 15-30 days to completely activate all payment options on your site.
Hats off to PayU Money for having saved all of us from these trials. They are taking a big risk on your part, to accept payments online without much documentation.
And that is why, by releasing a payment only after the customer acknowledges delivery of the product, they are making sure no fraudulent activities take place through their payment gateway.
Q. How is PayU Money different from the other more conventional payment gateways?
A. Like mentioned earlier, PayU Money is a payment gateway alternative for non-registered business i.e. individuals with nothing more than an individual savings A/C. Some of the other points of distinction are listed below:
|Conventional Payment Gateways||PayU Money Payment Gateway|
|Requires a company to be registered||No company registration required|
|Needs a Current bank A/C in the name of the company||All you need is an individual Savings bank A/C|
|Loads of documents required to get an authorized payment gateway||Just a Savings bank A/C and a PAN Card required|
|15-20 working days required to activate payment gateway||If all documents are in order, PayU Money is activated on your store within 48 hours of the PayU Money receiving the papers.|
|Store owner receives payment in T+2 days||Payment is received as soon as customer confirms delivery|
Q: Is PayU Money trustworthy?
A. We understand letting someone else handle your transactions is scary. But trust us when we say they are completely trustworthy. Otherwise we would have never have listed them, to begin with.
Q: Whose name will appear on the credit card statement of the customer?
A. The statement will record that a payment of so and so amount has been made to PayU Money. Which means that the transaction will be filed under PayU Money’s name.
Q: Where can I see PayU Money live in action?
A. Here are 3 of the Zepo online stores that are using PayU Money for their online transactions. You can place an order on any of these, to get a feel of it.
Are you an individual with awesome products to sell? You can now start your online store without registering your business! Give Zepo a try and start your online store in the next 5 mins.