CCAvenue Economy Plan - Zero Setup Fee - Ideal For Small Businesses

CCAvenue is one of the oldest names in the online credit card processing and net-banking transaction gateways. The new plan, called 'Economy Plan', has Zero Setup Fee, which might make it ideal for the small business players making a foray into online payment processing and e-Commerce business. You'll however have to pay a slightly larger commission to CCAvenue, the details are as follows -

  • Master Card / Visa / Diners Club Credit Card : 5.5%
  • Debit Card : 1.25%
  • Net Banking : 4%
  • AmEx / JCB Cash Cards : 5%
  • Annual Software Maintenance Charges : Rs. 1200 (waived for the first year of engagement)

Taxes will be applicable on all of above. Details: #-Link-Snipped-#

I think this might have a significant impact on the Indian ecommerce as the entry barrier has greatly been removed by CCAvenue which, I believe, offers largest number of payment options to Indians.

Other plans and their details are available in this screenshot -
ccavenue-economy-plan-free

What do you think?

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  • Anand Tamariya
    Anand Tamariya

    @anand-tamariya-DnfjEX • Mar 3, 2013

    This will hardly change ecommerce in India. A retailer has a wafer thin margin of 8-10% on most products. Sharing almost half of it with a payment gateway is a losing proposition - the reason why most e-retailers in India use Cash-on-delivery.

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  • Umesh Kumar Rai
    Umesh Kumar Rai

    @umesh-kumar-rai-BBwnLk • Mar 7, 2013

    Agree with you Mr. Anand. Accepting payment online is bit expensive even if there is zero setup fee.

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  • Kaustubh Katdare
    Kaustubh Katdare

    @thebigk • Mar 7, 2013

    I believe it all depends on the product. There are products which have heavy margins and they can easily opt for the payment gateways. The biggest advantage of CCAvenue is that they're integrated with almost every bank / card available in India.

    There are other players coming in the market that are trying to compete on the price margins.

    However, it's important to have an online payments options these days, India is rapidly adapting online payment mechanisms.

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  • Umesh Kumar Rai
    Umesh Kumar Rai

    @umesh-kumar-rai-BBwnLk • Mar 9, 2013

    Yes it depends on the product as well, but if there is margin of just 5-10 percent, then it won't be profitable for small companies. Because if customer pays using credit card, then 5.5% will goes to CCAvanue. For example, if cust orders a product of Rs:1000, and company earns Rs:100 from this, then more than Rs:50 will go to CCAvanue. But if customer is offered Cash on Delivery, then whole profit will goes to the company except transportation charges for the agent.

    I guess, it will take sometime to bring down the charges and it will come down as competition increases in coming future.

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