Internet merchants and other companies wishing to accept payments online or over a telephone (“Merchants”) can directly integrate with IndiaPay’s payment engine. Payer check data is collected by the Merchant either at their website or over the telephone, and is transmitted in real time, or in batch to IndiaPay for processing.
IndiaPay uses patented technology to generate check images files in accordance with the Federal Reserve Check 21 specification. Check images are formatted in X9.37 files and are transmitted in near real-time to banks, or more commonly directly to the Federal Reserve for clearing on behalf of the Company’s partner bank(s).
IndiaPay offers Check Authorization Service that enables merchants to verify consumer provided data, verify the status of their customer’s bank account, provide evidence that the consumer has authorized the check and predict the likelihood of a check being returned unpaid.
Businesses that accept IndiaPay payments utilize this service in real-time to provide greater assurance that the check will clear prior to check acceptance. Transactions can be approved or declined based upon the results of the Check Authorization Service.
Payment System Benefits to Merchants
• Increases Sales
o Enables the most payers
o Increases conversions
o Lowers abandonment
• Lowers Costs
o Rates much lower than card interchange
• Lowers Risk
o Unsurpassed fraud controls / payment guarantee available
• Speeds Cash Flow
• Fastest clearing
Proposed Relationship with Bank
• Check 21 Processor Agreement
o IndiaPay signs up merchants on Bank’s application
o Merchants are underwritten by Bank or Bank’s criteria
o Merchants open direct deposit account at Bank
• Merchant Services
o Merchants integrate with IndiaPay check engine
o Merchants collect data from payers and send to IndiaPay check engine.
o IndiaPay creates files and sends ICL deposits to Bank or correspondent bank
o Funds clear to Merchant’s accounts at Bank
Benefits to Bank Include
• New Business DDAs
• New daily deposits
• New transaction fee income
• New service offering to existing customers
• New service offering to attract new business customers
• Reduces reliance on ACH/ECS/RTGS/NEFT
• Reduces returns and unauthorized returns v. ACH
• Complete merchant underwriting control
• Forefront of leading technology
• Opportunities for new markets such as mobile