Payment gateways are mandatory things if you are running an e-Commerce site and want to get a huge amount of customer. But choosing the best payment gateway from the bucket is a headache. Because you have to choose a secure, speedy, user-friendly and most reliable gateway to give the best to your customer. Here we list payments gateways in Sri Lanka. But before getting into the list, we should learn about What is a Payment gateway? and how it works?
What is a Payment Gateway?
A payment gateway is an online application which enables an e-commerce website to accept electronic payments using credit cards, debit cards along with international payment methods like PayPal.
Refer this Wikipedia page if you want to learn more about what is payment gateways.
Categories of payment gateways
Payment gateways fall into two major categories
IPG refers to Internet Payment Gateway
Hosted Payment Gateway
This type of payment gateways will take your customer away from your site to make a transaction. For example, if we integrated a payment gateway in lkpedia.com and if our blog visitor tries to make a payment it will take the visitor to another site to make payment. Once the user finishes the transaction it will automatically redirect the page to our site.
Eg: – Paypal
Shared Payment Gateways
In this type gateways, the customer doesn’t have to leave our site for making a payment. The payment gateway provider will maintain a secured page on our site (lkpedia.com/payment). Once the customer finishes the transactions they will be taken back to our main site.
Advantages of Payment Gateways
- 24/7 Secure and Reliable Transactions.
- Along with transactions, you can have detailed reports.
- Protect both parties (Seller and Buyer) from fraud.
- Enable multiple-currency payments, which means you can get payments from any part of the world.
How does it work?
Step 01:- A customer places an order after filling card details on the website by pressing the pay now/ submit button.
Step 02:- If the entered card details are correct, customer’s web browser encrypts the information to be sent between the browser and the merchant’s web server using Secure Socket Layer aka SSL.
Step 03:- Then the merchant’s web server will forwards the transactions details to their payment gateway provider through another encrypted connection.
Step 04:- Then the payment gateway forwards the received transaction details to the payment processor used by the Merchant’s bank.
Step 05:- After that payment processor forward it to the card association(Eg:- Visa, Mastercard). Once the card association received the information they will send it to the credit card issuing bank.
Step 06:- The card issuing bank receives the authorization request and sends a response back to the processor with a response code.
Step 07:- The payment gateway receives the response and forwards it to the website where it is interpreted as a relevant response then relayed back to the cardholder and the merchant.
Step 08:- In the end merchant submits all their approved authorizations in a batch to their acquiring bank for settlement via their processor. The acquiring bank deposits the total of the approved funds into the merchant’s account.
All these things happening within 2/3 seconds except step 08 which takes 1/2 days based on the bank. You can learn more about it at Wikipedia.
Payment gateways in Sri Lanka.
Unlike our neighbor country India, we don’t have much payment gateways in Sri Lanka. Because of our so called local banks wants to play solo in the market. They don’t allow other financial institutions to create another competition.
We collected the details from few local banks about their rates for IPG(Internet Payment Gateway). Here is the list of banks and their costs.
|Bank||Setup Fee||Maintenance Fee/Year||Deposit Fee||Fee per Transaction|
| Commercial Bank|| 75,000 LKR|| 90,000 LKR|| 100,000 LKR|| From 4%|
| Sampath Bank|| 15,000 LKR|| 60,000 LKR|| 100,000 LKR|| 3%|
| Seylan Bank|| 20,000 LKR|| 30,000 LKR|| 300,000 LKR|| 3%|
| HNB|| 750 USD|| 750 USD|| -|| 3%|
Disclaimer: These prices depend on banks, so it may get change by time. Always get a quotation from the bank. We will try to keep these prices updated.
After comparing these amounts we can assure one thing. These payment gateways are not suitable for small/startup companies. The above three are local IPG providers. But fortunately, we have a lot of other IPG providers who are much better than our local IPG providers. And yes, the costs are also much cheaper comparing to our guys. Here is the list of some other payments gateways which are support payments to Sri Lanka.
Cheap and Best Payment Gateways
- PayLInk from Ridgecrest
PayLInk from Ridgecrest is the best choice if you are running a small startup. Because you don’t have to pay any setup, maintenance and deposit. But their transaction commission is kinda high when compared to other local IPGs. Here is the list of their Transaction fees.
|Monthly Transaction(LKR)||Fee per Transaction|
| Below 50,000|| 5%|
| Between 50,000 - 100,000|| 4%|
| Above 100,000|| 3%|
Undoubtedly, 2checkout is one of the best payment processors which do transactions in more than 15 languages and more than 20 currencies. Their transaction fee for Sri Lanka is 3.9% + 45¢ per successful transaction. Unlike Bank’s IPG integrating 2checkout with our site is very easy as they have plugins for almost all of the online shopping cart software.
CCAvenue is another famous payment processor with plenty of features like 200+ payment options, supports multiple currencies, Retry option & Customization, Card storage vault, Social Network In-stream Payments, Analytics and more. You can integrate CCAvenue gateway for free of cost.
You can choose payment gateways as per your need. All of them can process payments but few of them can bring good experience for your customers. So keep your customers in mind while choosing a payment processor. And personally, I would like to hear from you about your personal experience with our Srilankan Payment Gateway Providers. And let me know if I missed anything or if you wanna add something which can add value to this post.