How can a merchant in India conduct e-commerce? There are several approaches.

________________________________________ A merchant account through a major bank is best for larger companies but a bit p ricey for small businesses. PaySeal (www.payseal.com) is the payment gateway for ICICI Bank. Citibank India (www.citibank.com/india/) and HDFC Bank (www.hdfcban k.com/wholesale/sme/Payment_Gateway_Services.htm) also offer a payment gateway a nd merchant account, but details aren't on their websites. A second approach is to use third parties that take credit cards for your sales. CCAvenue (www.ccavenue.com/indianrupees.jsp), an Indian company, provides direc t debiting for customers in India with accounts at: HDFC, Citibank, ICICI, IDBI, UTI, Global Trust Bank, Centurion Bank, and the Federal Bank Ltd. In addition, credit cards can be received from customers outside India. Typical costs are a R s. 7,500/- set-up fee, Rs. 1,200/- annual fee, and 7% to receive credit cards, 4 % for net banking transfers. Transecute (www.transecute.com) includes fraud dete ction and risk mitigation. They charge a Rs. 30,000/- set-up fee and 5% per tran saction. Also consider companies mentioned in "E-Commerce When You Can't Get a M erchant Account," Web Marketing Today, Feb 15, 2006. (www.wilsonweb.com/art/ecom m/3rd-world-ecomm.htm) A third approach is to set up a PayPal account (available to residents of India) and use PayPal's merchant tools to accept credit cards and sell online. The dow nside is that you can't directly withdraw PayPal funds to a bank in India (thoug h you can request a check). But you can transfer US dollars in a PayPal account to Remit2India (www.remit2india.com), a service of the Times of India. They conv ert it into Indian Rupees and deliver it to your designated recipient. Costs are the PayPal recipient fee of 2.95% plus 3% to 5% fees for Remit2India. See detai ls in their FAQ. (www.timesofmoney.com/remittance/jsp/toi_faq.jsp?uiId=TOI&partn erId=TOML&faq=paypal)