Why does Nepal still lack a mature online credit and debit card payment system?
Payments
Asked by Question Bot09/Jul/20111 answer
1 Answer
F
Faisal Khan
Answered 09/Jul/2011
First of all, it is great to see people from emerging countries tackling problems like these. To answer your question - in short: "Not hard at all"
If you wanted a system whereby payments online were accepted/credited against EMV (Euro, Mastercard, VISA), etc. this is a simple integration issue with the necessary checks in place as the transaction would be MOTO (Mail Order Telephone Order).
A MOTO transaction is one, where you neither have the physical access to the card for swiping, nor can you take the signature of the card holder.
For this you need to integrate with systems that will validate as per the requirements set out by VISA, Mastercard, Amex, independently etc. on how online transactions are carried out.
Your 'typical' merchant / payment gateway provider in the West or even in South Asia will typically not cater to this, because this is
(a) essentially reselling, you will have multiple merchants under one-umbrella
(b) fraud cases or chargebacks for say Merchant X, will make Merchant A, B and C suffer equally (all under on umbrella), etc.
(c) Who does the ground work of KYC, etc. and multiple merchant sign-ups, etc.?
(d) Who becomes the payment processor - physically for all these merchants and how will they settle with all the merchants?
On the other side of the equation is that you have to find an ISO/MSP (Independent Sales Organization/Merchant Services Provider) that is willing to...
(a) Work in your country
(b) Be able to handle multiple currencies and multiple payment methods/cards
(c) Is able to handle multiple setups
(d) Can do 24-hour or maximum 48-hour funds settlement with you in your country in a preferred currency of choice (USD, Euros, GBP, etc.)
(e) Has an online rate that is low and comparable to offline transactions.
Both these are not too difficult to find, provided you have a basic business plan typed up, and also offer some form of an estimate of how much business, etc. could be harnessed from Nepal, as far as Online Transactions are concerned.
Good Luck.
If you wanted a system whereby payments online were accepted/credited against EMV (Euro, Mastercard, VISA), etc. this is a simple integration issue with the necessary checks in place as the transaction would be MOTO (Mail Order Telephone Order).
A MOTO transaction is one, where you neither have the physical access to the card for swiping, nor can you take the signature of the card holder.
For this you need to integrate with systems that will validate as per the requirements set out by VISA, Mastercard, Amex, independently etc. on how online transactions are carried out.
Your 'typical' merchant / payment gateway provider in the West or even in South Asia will typically not cater to this, because this is
(a) essentially reselling, you will have multiple merchants under one-umbrella
(b) fraud cases or chargebacks for say Merchant X, will make Merchant A, B and C suffer equally (all under on umbrella), etc.
(c) Who does the ground work of KYC, etc. and multiple merchant sign-ups, etc.?
(d) Who becomes the payment processor - physically for all these merchants and how will they settle with all the merchants?
On the other side of the equation is that you have to find an ISO/MSP (Independent Sales Organization/Merchant Services Provider) that is willing to...
(a) Work in your country
(b) Be able to handle multiple currencies and multiple payment methods/cards
(c) Is able to handle multiple setups
(d) Can do 24-hour or maximum 48-hour funds settlement with you in your country in a preferred currency of choice (USD, Euros, GBP, etc.)
(e) Has an online rate that is low and comparable to offline transactions.
Both these are not too difficult to find, provided you have a basic business plan typed up, and also offer some form of an estimate of how much business, etc. could be harnessed from Nepal, as far as Online Transactions are concerned.
Good Luck.