Merchants - how
to enable IPS?
- 1Why is it important that you enable instant payments at your point of sale?
- 2Costs of accepting instant payments and merchant fee
- 3Safety of instant payments at point of sale
- 4Accepting instant payments at brick-and-mortar points of sale
- 5Accepting instant payments at online points of sale
Accepting instant payments at online points of sale
Why is it important to enable instant payments in your online store?
Instant payments are the new payment generation enabling simple and secure payment at online points of sale. As online buyers have already changed their buying and payment habits and adapted to the digital environment, it is important for your online stores to offer this option as well.
One of the advantages of introducing instant payments at online points of sale is that buyers do not leave any data about their payment instruments on the Internet, as in the case of payment card payments. Namely, online payments usually mean that the buyer needs to enter card data in order to complete the payment. The fear of data misuse deters many buyers from making the payments either during the process itself or they avoid such payments altogether.
In making online instant payments, the buyer simply scans the generated IPS QR code which already contains merchant data, without having to enter any additional data. User experience of online instant payments is practically the same as when making payments at brick-and-mortar points of sale – it is completed by scanning the IPS QR code within the m-banking app which the user trusts and customarily uses.
Costs of introducing the instant payment option in online stores
It is very simple for you as a merchant to introduce the instant payment option in your online store. The acquiring banks have developed and implemented advanced solutions to enable fast and simple integration with the merchant’s online store. Moreover, merchants can prepare solutions for accepting instant payments on their own, which they can certify in cooperation with the acquiring bank, free of charge.
As no sensitive data on the payment instrument is entered on the merchant’s page when making instant payments at online points of sale, the enabling of acceptance does not call for complex and expensive systems on the acceptance page in order to protect sensitive data.
How can I enable instant payments in my online store?
In order to enable instant payment in your online store, you need to request an offer for this service from banks providing the instant payment acceptance service. For the sake of a reminder, all acquiring banks offering payment card acceptance online are required to offer instant payment acceptance to merchants as well. The list of acquiring banks offering this service is available here: Banks providing the instant payment acquiring service at points of sale.
The acquiring banks are required to offer to and agree with merchants on a merchant fee, with a separately disclosed multilateral interchange fee and the costs of the NBS IPS system, so that merchants can have an understanding of the costs and the bank’s margins in the merchant fee. The costs of online instant payment acceptance are the same as the costs of acceptance at brick-and-mortar points of sale.
Based on its requirements and the specificity of its online store, i.e. online point of sale, the merchant decides, in agreement with the bank, on the manner in which to implement instant payment acceptance and concludes a contract with the bank.
Note that the IPS SCAN method is used at online points of sale.
What does the procedure of instant payment in an online store look like?
The buyer orders the goods in the online store in the same way as when planning to make a payment by card or by cash on delivery. However, in the final step, when selecting the payment method, the buyer selects the instant payment option, i.e. the IPS SCAN method:
When this payment option is selected, the IPS QR code is generated:
Using his mobile phone, the user scans the displayed IPS QR code, initiates payment and within a few seconds, the online point of sale receives the reply from the acquiring bank, i.e. the message that the transaction has been successfully completed.
After this, the buyer receives an e-mail confirming the execution of payment and the order.
The entire procedure is shown at the following link
How to enable your online store buyers to make orders and payments from the same device?
When online goods and services are ordered and paid from one device (e.g. mobile phone), instant payment is made via the so-called deep link functionality which forms part of the acceptance solution offered by acquiring banks and technical service providers. Where the merchant implements the solution for instant payment acceptance on its own, the deep link functionality should be introduced in cooperation with the acquiring bank and the technical documentation of the National Bank of Serbia.
Instant payment procedure via the so-called deep link functionality
The buyer has accessed the online store where they wish to order goods and services from a mobile phone. The process of goods selection and ordering is the same as when intending to pay in another way (by card or cash on delivery). However, when selecting the payment method, once the buyer selects instant payment, the IPS QR code and the deep link option will appear on the screen. The buyer should then activate the deep link option, select from a list the bank whose m-banking app they are using and initiate the transaction. The buyer then completes the payment process in their app in the usual way.