All about online payments: what it is, how they work and who will approach

What are online payments?

Online payment – the ability to pay for goods or services on the Internet or through a mobile application without using banknotes. Usually carried out directly on the site or in the mobile application of the seller.

As a rule, the online payment algorithm looks like this:

  • The buyer chooses a product or service.
  • The seller summarizes the purchases and invoices.
  • The buyer agrees to pay the bill and confirms this by entering bank or other payment details.
  • The bank or the payment provider confirms the identity of the buyer and the availability of funds in the account to pay for the purchase.
  • The seller confirms the purchase, and the bank or payment provider transfers money to the seller’s account.

What types of online payments are there?

Internet Acquiring

This is the most popular way of making online payments. It is a transfer of funds from the buyer’s bank card to the seller’s account with the participation of the bank and the processing company. The processing company provides an interface for making purchases online and makes a procedure for debiting or crediting money. It can belong to a bank or be an independent enterprise.

Information about the payment is confirmed with the help of 3D-Secure technology, which allows you to authenticate the buyer, for example, by sending SMS to the phone.

Electronic Wallets

Require a purse from the seller and buyer for the transfer of electronic money. For example, this is Yandex.Money, QIWI and WebMoney. Companies provide plug-ins on the sites of sellers for convenience of calculations.

WebMoney charges a commission from 1.8 to 5.75% for each payment, and for $ 5 offers to create a button or widget that can be placed on the site. You can find out the commission for QIWI only when signing the contract. When transferring from the Yandex.Money service to the sender, a commission of 0.5% of the payment amount is retained, but not less than 1 kopeck. Payment data is transmitted using cryptographic protocols SSL or TLS.

SMS payment

This is a write-off of money from a mobile phone account for purchases or services. For example, paying for content in games. Suitable for businesses where there are many payments with a small check.

This method is used quite rarely because of the high cost and small amounts on mobile users’ accounts. The commission SMS-aggregator, depending on the category of payment and the operator is from 14 to 27%.

Pay with Apple Pay, Android Pay, or Samsung Pay

These mobile payment systems use tokenization of payment card data. The smartphone contains a token, which is access to the data of the buyer’s card, from which the funds are written off. You can confirm your purchase using the Touch ID, Face ID or password.

Online payment using terminals

It implies the independent interaction of the client with the terminal. For this purpose, payment terminals QIWI, “Svyaznoy” or “Euroset” are suitable. The seller must first contract with the terminal operator, who will connect the payment of business services.

How to work with Internet acquiring?

We will have to interact directly with the bank after signing the contract and passing the integration procedure. As a rule, this method is not beneficial for small and medium-sized businesses, as banks prefer to work with large companies.

Internet acquiring services are provided by Sberbank, VTB, Gazprombank, Alfa-Bank, Russian Standard Bank, Promsvyazbank and Raiffeisenbank.

Payment gateways act as providers for Internet acquiring. They connect buyers, sellers and banks and act as a kind of terminal for payment. The payment details are transmitted via the SSL (Secure Socket Layer) protocol.

The advantage of payment gateways is the ability of an online store to accept payments on cards simultaneously through several banks using a single simplified integration with the gateway.

This interaction improves the conversion of payments and allows you to switch instantly from one bank to another in the event of a malfunction or routine maintenance in the processing of the bank. Another advantage – the opportunity to obtain more favorable financial conditions and quality of service: obtaining financial reports for accounting, analysis of accepted payments, information on conversion and ways to improve it, round-the-clock support.

Payment gateways include Fondy, ASSIST, PayOnline, ChronoPay, CyberPlat, Uniteller, UCS (United Card Services).

Payment aggregators are intermediaries between different payment systems. They provide the seller with different methods of accepting payments under a single contract. Paying aggregators include Robokassa, PayU, Yandex.Kassa.

How much does it cost to connect Internet acquiring?

A direct contract with the bank provides for a commission for each transaction, which often depends on the turnover of the business. For example, Sberbank offers a 2% commission if the turnover is less than one million rubles a month. With a turnover of 7 million rubles a month, you can expect a commission of 1.8% and below. For RosEvroBank, the commission is 3% for those stores that show a turnover of less than 100,000 rubles per month, and 2% for turnover of over 10 million rubles.

Payment gateways also charge a commission for transactions. In the case of ASSIST, you will have to pay 2 950 rubles for connection and additionally pay a commission for the operation. ChronoPay connection is free, but there is a commission of 0.5%. Fondy’s commission is 3% with a turnover of less than one million rubles a month, 2.9% – up to 3 million per month and an individual rate with a turnover of over 3 million.

Payment aggregators offer a different commission depending on the turnover of the company. For example, “Yandex.Kassa” will take from 3.5 to 6% with a turnover of less than one million rubles per month and from 2.8 to 5% with a turnover of over one million.

Is it possible to customize SMS payment?

Set up SMS payment yourself will not work. Operators do not work with small and medium-sized businesses, so you need to contact the intermediaries. The third party is the SMS-aggregator, which provides a short number and a code word for payment. Examples of such companies: SMSCoin, SMSZamok, “Russian billing”, SMSOnline.

The buyer sends SMS to a short number with a certain word. From the mobile phone balance, the purchase amount is written off. For the provision of services SMS-aggregator charges a commission, which can be more than 35%.

And what are the features of working with Apple Pay, Samsung Pay or Android Pay?

To work with Apple Pay or Samsung Pay, you will need an SDK representing a set of software for the developer that integrates payment to a site or an application, or a payment aggregator / gateway that works with these technologies. For example, Sberbank offers support when connecting payment through an online store or application.

For their services, banks take an acquiring rate of up to 3% of the payment.

With Apple Pay, Samsung Pay, Android Pay, Tinkoff, Sberbank, ASSIST, PayOnline, Yandex.Kassa, Uniteller can work.

How to work with online payment using payment terminals?

In the Russian market, there are three major players – QIWI, Euroset and Svyaznoy. There is no information on tariffs in the public domain. These service providers offer to send a commercial offer, on consideration of which they decide to cooperate with a particular company.

Only after the decision on cooperation the tariff grid is worked out. After the request, the waiting for a response can be up to 3 days.

What if I want to activate online payments?

To connect Internet acquiring, you will have to apply to the banking organization. First, the application is made out on the site of the selected bank. Then managers are contacted to confirm the connection, then they invite to the department or sign the contract with the help of the electronic signature.

Electronic contract is made through the section “Electronic document management” on the bank’s website using eToken-signature or via SMS-confirmation. An electronic signature can be obtained from the center accredited by the Ministry of Communications of the Russian Federation. After receiving it, you need to scan the completed contract and send it to the bank along with an electronic signature. Then begins the procedure for checking and integrating the business.

The procedure for connecting Internet acquiring may take several weeks, depending on the bank.

To work with payment gateways on the site of the selected provider company, the application is filled. After its approval, the business owner receives a code that is embedded in the site to receive payment from customers. The user will see the form of payment with the prescribed purchase price. Similarly, payment aggregators work.

Payment providers can offer additional functions. For example, provide a payment analyst or a large selection of modules for CMS-systems. As a rule, such functions are free for entrepreneurs. At banks the software creates the external vendor for needs and problems of large business.

In the case of electronic wallets, it is enough that the seller and the buyer have these purses.

You can register them on the site. For example, “Yandex.Money” and QIWI-wallet do not require additional software. But WebMoney will ask you to install a special program.

The seller can directly invoice, create a form for payment or initiate a P2P payment by the buyer. But there are limitations in wallets. For example, the initial level of QIWI-purse allows you to keep only 15 000 rubles on the account. In addition, for the replenishment and withdrawal fee is charged – up to 3%.

What kind of online payment is suitable for business?

Internet-acquiring service from the bank will not suit all entrepreneurs, as the bank considers each company individually and can refuse cooperation if it finds it unprofitable.

Payment gateways have a wider functionality compared to banks. They work not only with bank accounts, but also with electronic purses that customers use. In addition, they provide ready-made modules for popular CMS, which uses small and medium business for online stores and e-commerce sites: Joomla, WordPress, 1C-Bitrix.

Microbusiness is better to make online payments through payment aggregators.

In them, the easiest way is document management, since aggregators combine payments on bank cards, using electronic currencies and SMS. All reports are generated in a single module, also provided for popular CMS.

Payment through the services of Apple Pay, Android Pay and Samsung Pay is used for online stores or mobile applications of the seller.

Neither SMS-aggregators nor payment terminals are profitable for use because of commissions or opaque policy of service operators, when each application is considered individually within 3 days.

What risks and complexities can arise when working with online payments?

The most common problem with the refusal to accept payment for technical reasons. However, online payments depend on the quality of the communication channel and the stability of the servers. Thus, on September 28 and October 9, there were disruptions in the work of Tinkoff Bank, and in August 2017, FC Opening showed unstable work. Therefore, it is desirable to choose a payment gateway or aggregator that offers to conclude an SLA (Service Level Agreement) – an agreement that guarantees the level of efficiency of the payment service.

An entrepreneur can connect online payments by all available means: bank cards, SMS, electronic money. StudyMediascope study: users prefer to pay through applications. the company Mediascope notes that most people use bank cards – 82.8% of respondents pay them at least once a year. Electronic money is used by 66.3% of respondents, contactless payment systems – only 8.6%.

When choosing how to accept payment, one should rely on their popularity with buyers. Additional payment methods can be connected as far as the requirements of the customers.