What is a Payment?
- A payment is a fund that your business receives in return for a good or a service your business provides to your customer.
How can I receive Payments via PayHere?
- You can receive payments Online through PayHere.
- PayHere offers several ways that you can get paid Online through your systems using the integration solutions or by yourself using Payment Links, buttons or Invoices as explained in below questions.
- Your customers can make you payments using their existing payment instruments such as bank cards, mobile wallets & Internet banking accounts & those payment funds directly come to your bank account which is connceted to your PayHere account.
How can I receive payments via PayHere through my systems?
You can integrate your systems such as Shopping-cart Websites, Web Applications or Mobile Applications with PayHere using any of the following payment integration solutions.
For Shopping-cart Websites: You can simply install the plugin & configure.
For Web Applications: You can integrate in code-level using these simplified APIs.
For Mobile Applications: You can use these SDKs & integrate faster.
How can I receive payments via PayHere by myself?
PayHere offers you few ways that you can receive an Online payment without a system such as a Shopping-cart Website, Web Application or a Mobile Application.
- PayHere Links - You can generate a payment link for a specific amount & share it with your customer to get paid.
- PayHere Buttons - You can generate a payment button for a specific amount & place it in your website or blog to get paid.
- PayHere Invoices - You can create a professional Invoice & send it to your customer through your PayHere account to get paid. All your Invoices can be managed through the PayHere account itself, as the Invoices automatically get updated as 'Paid' once your customer settles the Invoice.
What are the payment instruments that my customers can use to pay me?
- Bank Cards: Visa, Mastercard, American Express, Discover, Diners Club
- Mobile Wallets: Frimi, Genie, eZcash, mCash
- Internet Banking Accounts: Vishwa
What my customer has to do to pay me online?
That depends on the payment instrument (eg. Bank Card, Msobile Wallet, Internet Banking account) your customer choose to make you the payment.
- Enter the Card Number, Name on card, CVV, Expiry date
- Then enter the OTP number sent by Customer's bank (3D secure authentication)
- Enter the Wallet Number & PIN number
- Then enter the OTP number sent by the Wallet Provider
Internet Banking Accounts
- Enter the Internet banking username & password
- Enter the transaction password or OTP number sent by the bank
What is 3D secure (3Ds) authentication?
- It's a security feature for card payments which requires your customer to enter an OTP number sent by the Customer's bank to the Customer's mobile number registered with the bank, to complete the payment.
- 3Ds authentication prevents fraudulent payments done by stolen cards since the OTP number is sent by the banks only to the actual card holder.
- PayHere is a 3Ds enabled payment gateway by defualt & all the card payments processed via PayHere are 3Ds verified.
How is an Online Payment processed in real-time?
Processing an Online payment is a very complex technical process & it involves the technical communication between several parties, including the following.
- Merchant's Bank (Also known as Acquiring bank)
- Customer's Bank (Also know as Issuing bank)
- Intermediary Banks
- Payment Networks (eg.Visa/Mastercard)
- Payment Processor
- Payment Service Provider (PayHere)
When your customer enters the payment credentials & submits a payment request, following things happen in real-time.
- Merchant's bank communicates with the Customer's bank through Payment Networks using the payment processor systems & request authorization for the payment.
- Customer's bank does several checks such as the validity of the payment credentials, availability of funds to process the payment, state of the customer's account & if everything is fine, the customer's bank authorizes the payment request with an authorization code & capture the funds from customer's account. If any of those checks get failed, the customer's bank declines the payment request with a decline message.
- Payment status (authorization or decline) is then communicated to PayHere by the payment processor & the status of the payment is displayed to the customer as a successful payment or a declined payment.
- At the same time, PayHere technically notifies the payment status to your system so that your system gets updated in real-time & PayHere also notifies you & your customer through Email Notifications.
You can monitor the authorized & captured payments in the Payments tab in your PayHere account & declined payments in the Payments > Declines section of your PayHere account.
What is an Authorized Payment?
- When your customer's payment is approved by the Customer's bank or issuer, it's called an Authorized payment.
- Authorized payments are recorded in your PayHere Account's Payments section with the authorization details & all the other details captured through the payment gateway.
What is a Declined Payment?
- When your customer's payment is rejected by the Customer's bank or issuer, it's called as a Declined payment.
- Decline payments are recorded in your PayHere account's Payments > Declines section with the reason for decline returned by the customer's bank.
Why can a Payment get declined?
- A payment can get declined by the customer's bank due to various reasons & following are some of the common reasons of them.
- Invalid payment credentials (Card/Wallet number, CVV/PIN, OTP)
- Customer has not completed the OTP verification (3D secure authentication)
- Insufficient funds in Customer's account
- Account is closed or freezed
- Customer's bank has not enabled their debit cards for Online payments
- You can check the particular reason for the decline in the Payments > Declines section of your PayHere account. (Check the last question or Google search the decline message to know when that particular decline message is returned by the Customers' banks.)
When do I get the funds of an authorized & captured payment?
- The funds of an authorized & captured payment comes to your bank account after 2 bank days as a total, along with the other captured payments on the same day.
Why does it take 2 days for funds to come into my account?
- It's the time taken for the funds to get transferred from Customer's bank to your bank directly or via intermediary banks as per bank-to-bank fund transfer cycles, also known as T+2 which is the settlement time of Online payments globally.
Do the funds go to a bank account of PayHere before being settling to my account?
- Not at all. PayHere does not touch your funds at any point & the funds get directly transferred from Customer's account to your bank account directly or through intermediary banks. PayHere is only a technical facilitator for payment authorization in the capacity of a payment service provider.
Is there any chance for an authorized & captured payment not to come into my account?
- No. A payment authorized & captured by Customer's bank definitely comes into your bank account after 2 bank days, unless it's hold for a suspicious fraud verification.
Can I refund a received payment back to the customer?
- You can refund any card payment back to the customer. Please refer Refund Process in the Knowledge Base to know more details on refunds.
Can the payments I received be chargebacked from the Customers' banks?
- The card payments you receive can be chargebacked due to various reasons. Please refer Chargeback Process in the Knowledge Base to know more details on chargebacks.
What are the payment statuses I see after receiving a payment?
- Approved - Payment is authorized & captured by the Customer's bank & will be paid out to your bank account in 2 bank days
- Paid out - Payment is paid out to your bank account
- Refunded - Payment is refunded back to your Customer
- Chargedback - Payment is charged back by the Customer's bank
- On hold - Payment is hold for fraud verification
What are the common decline messages returned by Customers' banks & what can I do for them?
Decline messages are returned by Customers' banks when the payment requests by the customers are not authorized by their banks. Following are few of such common decline messages. (If you cannot find the decline message you're looking, just Google it. Those declined messages are same for all the banks.)
- Not sufficient funds - Customer's account does not have funds to make the payment
- 3Ds authentication failed - Customer has not submitted the correct OTP number to complete the payment
- Invalid card number - Customer has not entered the card number correctly
- Card has expired - Customer's card has expired or entered incorrect expiry date
- Transaction not permitted to cardholder - Customer's card cannot be used for Online payments
- Card error refer - Customer's card in not validated by the Customer's bank
- Do not honor - Customer's bank has not validated the payment
When a payment is declined, you can check the decline message returned by customer's bank at Payments > Declines section of your PayHere account & take the following actions.
- Inform your customer that their bank has declined the payment. (Most of the customers misunderstand Declined Payments as payment gateway errors. Therefore it's important to educate that it's not such an error, but their own bank has rejected their payment in the first place.)
- If the Decline Message is self-explanatory such as 'Not sufficient funds' or 'Card has expired', ask the customer to do the needful to resolve it & retry the payment.
- If not, let your customer know the Decline Message returned by their bank & ask them to contact their bank & inquire about the Decline Message.
- If nothing works, ask your customer to retry the payment with a different card.