Paymentprocess

19. How Payment Aggregators Make Money?

The main purpose of a business is to make money… not just revenue but also profit… and…

11. MID & Live ID

Banks are the one who process the payments and a payment aggregator is just a layer above those banks. To process transactions, the aggregator has to procure MID (Merchant ID) from the banks and then link those MIDs to the Live ID that of the merchant.

10. Risk & Underwriting

Risk is underlying theme of payments; technology, features, guidelines, merchant on-boarding process are designed to reduce the risk.

The rates (TDR or MDR) are barometer of that risk in the payment eco-system.

9. Curious Case of Chargebacks

The interesting thing about chargeback is… nothing

They are kind of boring, merchants do not like them, aggregators despise them… but chargeback are important as they safeguard cardholders.

8. Refunds

Refunds are essential part of online business… we cancel tickets, we return product. I think refunds played great role in growth of e-commerce as they installed confidence in users.

Refunds can be marked only against successful transactions. Merchant can either mark full or partial…

5. Settlement Time

Main purpose of online payments is getting ‘money’ from user. So ‘settlement’ is the crucial part of the payment cycle. Let’s assume transaction was successful, when will merchant get the money and how much?