How can I accept online payments directly from bank accounts in a developing country without major card networks?
Payments
Asked by Question Bot11/Nov/20121 answer
1 Answer
F
Faisal Khan
Answered 11/Nov/2012
The only viable method I can think of: if your country supports an interbank funds transfer via the ATM switch. Interbank funds transfer is the ability to transfer funds between accounts using the ATM switch (in real-time).
Traditionally, in the absence of a Visa/Mastercard network (or in the eventuality where you would like to by-pass them), your best alternative is to use the ATM switch and inject your transaction and obtain approval through the switch.
There are external network players like Euronet which plug into almost all the major ATM network/switches in the world. Many payment networks like Visa and Mastercard who if are not present locally, will ride and rely on Euronet to do the transaction.
The only downside is, Euronet may not be able to take you if you are too small, or if they deem your transaction volume is not up to par with their minimum requirement. Euronet is just one example. There could be other network operators (either global or local) that could possibly provide this service. You will have to ask around. Not to mention Euronet would probably be charging you either in US$ or GBP/Euros if these are not your native currencies.
Alternatively (and the recommended approach is that), you can either partner up with a local bank or approach the ATM switch directly for a direct interconnect.
Direct interconnect for transaction may pose problems due to PIN security, insurance and compliance, which leaves you with the option of partnering up with a bank.
Partnering up with a bank has its advantages with respect to insurance, trust-value, easy access to the switch, escrow accounting, nostro balances, etc.
Writing (developing) code for interfacing with an ATM payment gateway is pretty straight forward. You can supplement it with an additional layer of security of a one-time PIN generated and relayed to the card holder's mobile phone.
Essentially, what you will be rolling out is a direct-debit ATM payment system, that is online. The above diagram depicts a simplified payment route.
Deploy such a system once, and you will find that there are many users and usage of such an alternative network.
Traditionally, in the absence of a Visa/Mastercard network (or in the eventuality where you would like to by-pass them), your best alternative is to use the ATM switch and inject your transaction and obtain approval through the switch.
There are external network players like Euronet which plug into almost all the major ATM network/switches in the world. Many payment networks like Visa and Mastercard who if are not present locally, will ride and rely on Euronet to do the transaction.
The only downside is, Euronet may not be able to take you if you are too small, or if they deem your transaction volume is not up to par with their minimum requirement. Euronet is just one example. There could be other network operators (either global or local) that could possibly provide this service. You will have to ask around. Not to mention Euronet would probably be charging you either in US$ or GBP/Euros if these are not your native currencies.
Alternatively (and the recommended approach is that), you can either partner up with a local bank or approach the ATM switch directly for a direct interconnect.
Direct interconnect for transaction may pose problems due to PIN security, insurance and compliance, which leaves you with the option of partnering up with a bank.
Partnering up with a bank has its advantages with respect to insurance, trust-value, easy access to the switch, escrow accounting, nostro balances, etc.
Writing (developing) code for interfacing with an ATM payment gateway is pretty straight forward. You can supplement it with an additional layer of security of a one-time PIN generated and relayed to the card holder's mobile phone.
Essentially, what you will be rolling out is a direct-debit ATM payment system, that is online. The above diagram depicts a simplified payment route.
- The online web server parses payment credentials (via the Internet) to a Gateway server.
- The Gateway Server connects to the ATM switch (via a private network)
- It injects the transaction and obtains the transaction details and number
- This information (approval/denial, confirmation, order number, time-stamps, etc.) are all pushed back to the Gateway Server
- Which in turn will push the necessary payment approval/denial credentials back to the Web Server.
Deploy such a system once, and you will find that there are many users and usage of such an alternative network.