ATP/PAYMENT GATEWAY

What is a payment gateway?

The main function of a Payment Gateway is to encrypt sensitive
credit card /debit card data and securely send it across the Internet
for a live authorization. A payment gateway’s job is to keep your
sensitive data safe when traveling over the Internet. MPPKVVCL
Limited consumers are making payment using PayU/PayTM and
MP Online Limited. In MPEZ Portal (www.mpez.co.in) currently
PayU Payment Gateway integrated.

Do I need one?
That depends! If you accept online payments, you’ll almost
certainly need a payment gateway. A payment gateway is the only
system that allows for live, real-time authorizations in an Internet
environment.
What is a merchant account, and why do I
need one?

• A merchant account is a business account with a bank that

allows an organization to accept credit card/debit card
payments for donations or other products/services.
• A merchant is someone who wants to accept credit and debit
card payments from their customers (cardholders) for the
goods or services they sell. They must obtain a merchant
account and set up a payment gateway account before they can
start accepting payments and get paid.
 Who are the different entities involved in a
transaction?
• Customer: In every online (Nebanking/Credit Card/Debit Card)
transaction, the customer is the person/organization who is making the
payment.

• Merchant: That’s you! (MPEZ Portal)The merchant is the organization

accepting the payment.

• Card Issuing Bank: Also known as the “issuer.” The card issuing bank is
your customer’s bank. The card issuing bank represents your customer and
will defend your customer in the event of a dispute.

• Merchant Service Provider (MSP): Also known as the “acquiring bank.”

The MSP is your bank for net banking /debit card/ credit card transactions.
The MSP manages risk, funds the merchant, ensures your account meets,
MIS etc.
 How does credit card/debit card pricing
work?

• There are three main components to the cost of all credit card/Debit Card
transactions:

1. Interchange: Interchange rates are the base-costs of every transaction and

are the fees that are paid back to the card issuing bank. Interchange fees are
fixed and apply to all merchants.

2. Card Association Fees: Card association fees are paid as a percentage of

every sale and the fees are paid back to the Card Associations, such as Visa,
MasterCard, and Discover.

3. MSP Margins: Your MSP will charge a fee for their service to cover
administrative costs, risk mitigation, hardware, processing, customer
support, etc.
Online Payment Process
 Different Payment Collection Modes

Different Payment Modes.

a. Window Collection
b. ATP Collection
c. MPONLINE/ PAYTM
d. E-Billing( PayU)
Payment Collection Mode