Intro to Payments

Forms of payment for Indian Consumers

1. Debit Cards issued by Indian Banks.
2. Visa / Mastercard / Diners / Amex Credit Cards.
3. Through Net Banking.

Authorize

The first step of payments flow is Authorization. Here, the customer is authorized and the amount to be paid (by using debit/credit card) is blocked on his/her card for the maximum time period of 8 days, by the bank.

Capturing the Payment

The second step of payment involves capturing the payment, i.e. the money which has been blocked during the Authorization process, is transferred to the merchants account from the bank. The merchant can capture the transaction in up to 5 days after the Authorization.

Canceling the Payment

The merchant can cancel the authorized transaction, and in this scenario the money on the customer's card which was blocked during the authorization step is released.

What do you mean by Refund?

In some cases, a merchant might have to refund the captured amount, this is where the refund process comes to an action. By using this procedure, the merchant can refund the captured money either in full or a partial amount.

Defining settlement

• It is a process, where the captured money is transferred into the bank account of the merchant.
• Signetpay complies a T+2* settlement scheme.
• T=Transaction capturing date.

Chargebacks & the risks involved

There are few cases where a customer opposes the transaction, and asks for his/her money back. The customer can claim back his money from up to 180 days after the transaction is done. Proofs for the claim are submitted by the customer as well as by the merchant to the bank.

Chargebacks usually happen for two reasons:

• Fraud Transactions.
• Goods and services not delivered as per the promise.