As businesses go online, the need for the best payment gateway is realized. What may be the best payment gateway option for one business may not be the ideal one for the other. Hence, you need to evaluate payment gateways on multiple parameters and then select which one to go for.
I have covered two of India’s most popular payment gateway platforms, CCAvenue and Cashfree Payment Gateway.
In this comparison, I have covered all major technical as well as non-technical parameters including settlement cycle, refunds handling, support, and payment gateway charges.
1) Setup Cost of Payment Gateway
Setup or integration cost varies plan to plan, for Startup pro, setup fee is Zero while for Privilege plan it is Rs 30,000.
Cashfree payment gateway charges Zero setup fee irrespective of plan or volume of transactions.
2) Modes of payment
Both the payment gateways support almost all the popular payment modes including Net banking, Debit Card, International cards and popular wallets including Paytm.
Below: Sample image of payment gateway checkout page showing various modes of payments. Cashfree also provides the widest range of UPI integrations such as webflow, intent flow, Google pay UPI integration etc.
Pay later option- Buy Now Pay Later
As the name suggests, this option let’s your customers buy a product and make payment in instalments or lump sump amount at a later date. These payment options are ideal when the product value is huge and instalments may be seen a feasible option.
For example Ola Money launched a Buy Now-Pay Later micro loan facility for consumers on the app.
The service allows consumers to get 15 days credit for amount ranging from Rs 1,500 to Rs 20,000, depending on their credit profile
CCAVENUE has recently partnered with ePayLater, other than this it also supports multiple bank EMI options.
CASHFREE payment gateway provides the largest number of PayLater options including OLA Money, ePayLater, ZestMoney and multiple bank EMI option.
Cashfree recently partnered with Ola Money to provide ‘Pay Later’ facility.
Ola Money partners with Cashfree for 'pay later' facility
The service allows consumers to get 15 days credit for amount ranging from Rs 1,500 to Rs 20,000, depending on their…
3) Multi-lingual checkout page.
This feature is liked by consumers who prefer content in their native languages.
CCAvenue multilingual checkout page is offered in 18 major Indian and International languages.
Cashfree donot support multiple languages on checkout pages.
4) Handling order refunds
Return policy can vary from merchant to merchant. When an order is cancelled or a refund is to be processed, managing it in a prompt and professional way is an important contributor to customer satisfaction.
A refund can be initiated in quick time, but processing by banks and card networks, and finally crediting the customer account takes much longer — 7–8 working days on average and even longer for certain banks and cards. This becomes even harder for cash on delivery orders, where there is an added step of first collecting the bank details from the user.
Handling support queries around refunds thus ends up being a major operational challenge.
Does not have any refund management automation system.
Cashfree has spent time working on this problem and come up with solutions to process refunds instantly.
- While most payment gateways allow you to ONLY accept payments, Cashfree offers Payouts-a bank API as an instant, automated payment disbursal solution. This offers an easy way for businesses to pay users and allows instant processing of refunds.
- For COD refunds, where customer payment details are not available you can send the customer a Cashgram to collect payment details and send the refund amount instantly. Using Cashgram you can process Instant refunds to Bank account, UPI, Paytm wallet or Cards for COD refunds.
With Cashfree you can opt-in for same day refund processing and keep your customers happy.
5) Payment gateway Payment settlement cycle
Settlement duration is the time it takes for the seller’s account to be credited after the buyer’s account has been debited.
This process typically takes two to four bank working days. Delays arise when banks are closed during weekends and other bank holidays.
A longer settlement cycle means that your revenue will be locked with intermediaries like banks, payment gateway provider leading to lower liquidity of funds.
CCavenue has settlement cycle of T+3 days, which means if you sell on Monday, you will receive the payment on Friday.
Cashfree is only Indian payment gateway that promises T+1 settlement cycle. That is if you sell on Monday, you will receive the money credited to your bank account on Tuesday.
6) Payment Gateway Charges
Lastly, pricing is an important factor merchants keep in mind while choosing a payment gateway.
Payment gateway charges include charges like annual maintenance fee, along with per transaction cost. The payment gateway charges vary based on the type of transaction-domestic or international and mode of payment, for example, payment gateway charges for Net banking payments will be lower than charges for Credit card payments.
CCAvenue charges 1200 Rs as Annual Software Up gradation Cost and its payment gateway charges start at 2% per transaction.
Cashfree charges ZERO Annual Maintenance Charges (AMC) and has lowest payment gateway charges
Conclusion- CCAvenue alternative
While CCAvenue has been in the domain for longest time, it is advisable to go with Cashfree, since when compared CCAvenue and Cashfree , Cashfree will be more beneficial to the consumers due to innovative features like refunds management, most number of Pay Later options, lower charges etc to list a few. The short settlement cycle of T+1 is ideal for businesses that do not want their funds to be blocked as it hits the liquidity. As best alternative to CCAvenue, I will recommend Cashfree.