Payment methods in India include traditional methods and digital methods. In traditional methods people mostly use cash or cheque as preferred medium of transactions. Digital transactions occur using online and via credit / debit card.
Payment methods in India
There are many options when it comes to payment gateway but you want to choose best. Check out the list here for some good options available.
Traditional payment methods in India
Traditional methods include cash deposit to a bank account, payment by cheque and directly paying cash.
Making payments via cash
For some people making payment via cash is still one of the most convenient methods for making payments because it allows you instantly complete transaction by making payment and taking required goods.
Other than this you can also deposit cash in payee’s bank account to confirm the transaction.
Making payments via cheque
Making payments via cheque is one of the safe methods because payment goes straight to account. It is also one of the most secure payment methods. In case of cheque payment both the parties have record available in their bank account books.
Common digital payment methods in India
Digital payment methods in India include online banking or debit / credit card. Debit card may or may not require OTP (one time password) for enhanced security. Online include NEFT, RTGS, IMPS and ACH.
NEFT: National Electronic Fund Transfer
NEFT transactions are used when you wish to electronically transfer funds to one or more bank account. These transactions are generally come free of cost with banking services. In case of transfer within same bank transaction is done instantly and in case of other bank it may take few hours to get processed. Mostly these transactions are done online but you can also do NEFT via cheque by going to a bank. NEFT in case of other bank is limited to bank operating hours.
RTGS: Real Time Gross Settlement
RTGS is similar to NEFT and people use it for fast money transfer. You can also visit bank to do this transaction via cheque. In this case transaction is quickly and money is credits instantly to bank account. In most banks these services are chargeable. RTGS only works in bank operating hours.
ACH & IMPS are popular for instant transfers
ACH: Automated Clearing House
First of all ACH is like a standing instruction given to a financial institution to debit money when due date arrives each month or as per billing cycle. Normally financial institutions like insurance companies, credit card companies and banks use automated Clearing House for easy money debit from customer. Every month they debit pre-selected amount from customer’s bank account.
IMPS: Immediate Payment Service
IMPS, paid money transfer service provided by banks where we can transfer money irrespective of bank operating hours. It is chargeable and it is available 24 hours a day. You can transfer money using online banking and charges are dependent on bank that you are associated with. Generally it ranges between INR 5-10 per transaction.