How to receive payment from credit card?

[SrijitTN]

I am a distributer in agricultural seeds, pesticides and weedicides, varying different GST rates. I have customers who want to make payments via rupay, visa or mastercard credit and debit cards for which I use paytm to receive money but the issue is paytm charges upto 2% for credit cards. Since the billing amount is huge, 2% becomes very much for my customers. I would like to promote my business by offering credit card payments. I would like to know if there are any app or any other means so that I can receive money in very minimal or zero charges.

Also if i would like to offer EMI options for my customers, will i receive payments in time even if the customer don't make it in due date. I mean like let's say 'x' is my debtor who purchased 1000rs worth goods asking for 10 months credit. Let's say he paid EMI on due dates for 2 times, then he makes a default, will I receive money by auto debit feature or will I loose money

 

[RitamModak]

Consider making a payment gateway like Razorpay , Zaakpay by Mobikwik, Pinelabs , Describe them your needs and consult with them for fees negotiation ..They will low down your fees on Volume of payments...It will be the best choice for you....


For emi You can consider razorpay paytm phonepe payment gateway ...they will provide the customer a credit line on their worthiness..

**1. EMIs Managed Directly by You (Without Third-Party Involvement):​

• Risk: If the customer defaults after a few payments, you may lose the unpaid amount unless you have a legal mechanism in place to recover it (like a post-dated cheque, signed agreements, or legal recourse).
• Auto-Debit Feature: Setting up an auto-debit mandate via the customer’s bank can ensure regular payments, but if there are insufficient funds in their account, the debit will fail, and the payment won't go through.
• Mitigation:
  • Credit checks before offering EMI.
  • Security deposit or partial upfront payment.
  • Clear terms and penalties for late payments or defaults.

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2. EMIs via Financial Partners (Banks or Payment Gateways):​

• In this scenario, you collaborate with a bank or a fintech service like Razorpay, Simpl, ZestMoney, etc.
• Risk for You: Minimal. These institutions usually pay you the full amount upfront (minus their fees). They then collect EMIs from the customer.
• Default by Customer: The financial partner takes on the risk, and you are not directly affected.

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Summary for Your Example:​

• If you manage EMIs directly, and the debtor defaults after two payments, you would not receive the remaining amount unless you have measures to enforce payment.
• If you partner with a financial institution, you get the full ₹1,000 upfront, and any default is their concern, not yours.

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Recommendations:​

1. Partner with EMI Providers: This reduces your risk, ensures cash flow, and avoids collection efforts.
2. Implement Strict Agreements: If handling EMI yourself, use legally binding agreements with penalties for default.
3. Auto-Debit or Post-Dated Cheques: Ensure customers sign up for these mechanisms to minimize missed payments.