What is InterSwitch about? According to their website:
InterSwitch Limited is an electronic transaction switching and payment processing company with a business footprint that covers the provision of shared, integrated message broker solutions for financial transactions, e-commerce, telecoms value-added services and e-billing in the Nigerian environment.
Most of the local debit/ATM cards issued in Nigeria are linked to the InterSwitch network about 9 million cards. 23 out of the 25 banks in Nigeria linked to the InterSwitch network and issue InterSwitch-backed cards as well. One can thus understand the huge potential for any web merchant that accepts payment from InterSwitch cards, via the Internet. Nigeria has an official population of about 140 million and this shows that there is a big possibility that the number of InterSwitch cards will increase even further.
The product from InterSwitch that enables web merchants to accept payment online in real-time from InterSwitch cardholders is known as WebPay.
WebPAY is a secure internet payment gateway developed by InterSwitch to facilitate payments on the internet (across various banks) using debit cards issued by banks on the network. Currently only the Nigeria Debit Card and CashCard are supported. WebPAY provides the simplest and quickest method of integrating e-commerce websites to the InterSwitch payment platform.
WebPAY plugs-in seamlessly with existing websites and acts as abridge between a merchant’s website and financial institutions (banks) that process payment transactions.
Now, this is the problem: A merchant needs to cough out a whopping sum of N150,000 (about $1,250) to get the WebPay API for his/her website. Aside that, InterSwitch makes 1.5% on every transaction that passes through WebPay. In my opinion, no justification for the high entry fees. To the best of my knowledge, it is the only thing that has kept most web merchants away from InterSwitch. Simple economic principle: Lower your entry fees, have more merchants on your network, make more money from the transaction fees.
The closest competition to InterSwitch is Etranzact. Their entry fees is only marginally lower: about $1,050. Perhaps we need Visa and Mastercard to knock this folks to size.
Are you a web merchant in Nigeria? What are your thoughts?
Related posts:
- Standard Chartered Bank Nigeria joins Interswitch
- Banks that disabled InterSwitch Cards for Internet Use
- Interswitch Nigeria & member banks move against ATM fraudsters
- Beware of fake Interswitch emails
- E-commerce in Nigeria: We’re back to the stone age!
- Problems with credit/debit cards issued in Nigeria
- Etranzact Cardholders can use their cards in Ghana and Nigeria
- ATM Woes in Nigeria: Your Financial Institution is NOT available
- Zenith Bank Visa Cards
- Why is e-gold popular in Nigeria?
Oluniyi David Ajao from Texas, United States
Twitter Updates
GTB already has something cheaper. It is called GTPay. Once installed on your website, it allows you to collect payments from both Interswitch and Etranzact card holders.
I don’t know the exact fee, but I hear it is far cheaper that Interswitch.
http://www.gtbplc.com/display.php?mtd=gtpay.php?
To prove its cheaper, give us their entry price.
GTB is one of the banks behind the InterSwitch consortium and I doubt if they’d deliberately offer a lower price independently. In essence, GTPay is the same as Interswitch WebPAY and Etranzact cardholders cannot pay on that platform.
Anyone who has more information should please share it.
Hey Hi Niyi,
It didn’t make sense to me either that WebPAY and Etranzact cardholders CAN pay on that platform until I wanted to make a purchase online and behold they accept GTPAY. Anyway I captured the image for you to see. Yes GTPay accepts Interswitch and Etranzact ATM cards.
I am host the image here:
http://img39.imageshack.us/img39/9905/capturel.jpg
Take care.
Thanks for sharing Kemi. I would follow-up on this matter. Thanks again.
I called GTconect to make enquiries about GTPay, but I was told to call their Card Services department during normal working hours for details.
The service is for real, as some websites have already started accepting Interswitch payments by this means.
I didn’t say GTPay is not real. I am telling you “GTPay” is just a brand. It is essentially the same as InterSwitch WebPAY. What I need to know is if GTB is offering a lower fee and how much this fee is.
For a company like Interswitch, would its account prepartion follows the bank patterns? I beleive the services rendered by the company can be classified as financial services as well.
its just one thing that is needed and that is COMPETION. there is none at the moment so the market is theirs for the wacking. until we are fortunate enough to get a company to do to them what globacom did to the big boys mtn and former econet i do not see any immediate in the horizon. so if you are a web merchant and you know you have a good product to offer please look for a way to cough up the money even if it means borrowing. at least folks who bought gsm lines when the price was up there will not be complaining now by saying they wished they had not bought then but waited for it to be 80naira. lol
What then is the solution to this online payment nightmare??
Nice commentary on the two system. Both eTranzact and Interswitch are bringing ecommerce to Nigeria.
However, they are only accepted in Nigeria.
there is a company I use all the time for payment from Nigeria called GLOBALDOSH(www.globaldosh.com) who allows payment to be made worldwide from Nigeria. I even load my GlobalDosh ewallet with Interswitch.
I wanted to find out if interswith cards (ATM) in Nigeria can be access through web. If possible kindly send me the web application service for validating Nigeria ATM.
I think in a country as ours we need govt to fast track certain things, and one of such is the epayment system, prof. Soludo attn is reqiured. what exactly can he do? I suggest that CBN set up a portal to facilitate electronic fund transaction so that small businesses can be setup to provide these API’s to web merchants. I dont see why a web merchant should part with N150,000 and 1.5% on every transaction to any coy just for providing API, how much does it cost to develop these programs? Govt must be aware how Bill Clinton’s administration created thousands of job for American through the Internet, let govt not think fraud! fraud!!, the Internet can remove joblessness from our country.
I quite agree with u guys. The entry fees is rather too high. Its hampered the growth of e-commerce biz in this country.
Is there a way we can bring this to the notice of Governement and even interswitch. Any medium of letting them know this is a potential gold mine thats not exploited? The convenience of e-commerce would have been embraced but for the high fees
Well, on this issue “Interswitch fee”, i think it really to much pathing way with N150,000 and 1.5percent on every transaction. i guees we should keep our brains to work on how to beat the peice down probably on building our own switch payment. it challenging but we can do it. else for now we dance to the tune of the beat.
i want to be able to make payment with my interswitch online
hi david,
this is a bright idea imust commend u for this.
pls do u have any idea on the entry fee for cashcards?
i think the entry fee for the webpay is not too much looking at potential cutomers u have but am not in support of collecting entry fee and collecting 1.5% i think that is much for a start.thanks
hi,
i must commend you.
pls i want to know the entry fee for cashcards?
to me i think the entry fee is not too much looking at your potential customers but am not just in support of taking 1.5% after the 150,000 that will be collected for a start.its much.
thanks.
GTPay fee is N50,000.
Its easy for you to bellyache that Interswitch is expensive,but let me point out that they act as a clearing house,not just ATM or credit card processing company,as some of the companies in the US.Also the banking system there is not like ours.Finally VISA and Mastercard do not process credit card payments.
GTB say they charge 75,000 for integration into the interswitch network if you have an account with them. But that is what they say, cos Naija will never change. I have a website which needs integration into the interswitch network and i have been on GTB for the past 1 month, sending emails , phone calls and nothing from them. They just make noise that they do it, but i doubt it. I will have to cough up the 150,000 and go straight to interswitch.
the entry cost ought to be completely wiped or reduced to a mere 10, 000 or 20, 000 (which is even still on a high side.) Paypal is free sign up so why can’t interswitch? its not as if they are doing you a favor. They still get 1.5% of all your transactions. The problem with Nigeria is that some people are just full of greed. And I don’t blame them. if Nigerian’s can speak with a single voice and decline from using the service, won’t the price drop?
Well I wonder if anyone has an idea to overturn the restriction on Nigeria by paypal to enable us making and received international payments. That way we can sideline interswitch and their boddies
hi am in support of scots idea of building our own switch payment
am a programmer c++ java who else’s intrested out there
w could set up the project on source forge
contact me agbalaya_olubodun@yahoo.com
hey george whats actually paypals reason for the restriction
Mr Agbalaya Olubodun. I am also a C++ programmer. Do you really know what it takes to build a switch payment mechanism? Mi e-mail adress is agabaakuh@fastmail.fm. Kindly send me some information.
It is so unfortunate that the mastercards and visacards and whatevercards have taken Africans/Africa for granted. But time is a fair judge. The’ve lost a big junk of what should have been their market share for possibly eva. Interswitch I guess is making the best they can. Most of this entrepreneurs don’t think like we programmers do. They spin business on a fulcrum till the point starts chipping. In our under developing countries we the enlightened ones watch and convulse in despair. I hope we don’t become disenchanted like the Achebes, but, we shall neva say die, cause we know we shall neva die.
Interswitch cannot make it free because
1. The system itself is not ready for such traffic
2. There are a lot of security concerns regarding its current operation.
3. There is no support infrastructure to support it.
Kayode,
You say it like these problems are new (traffic, security concerns, Suport infrastructure). I’d have thought it was an opportunity to move the cadre a bit… upgrade, collaborate, build or find bigger infrastructure – I hear the Isrealis are so good and looking for people to put stuff on them (for a fee of course!)
Interswitch was not set up to cater for ‘retail’ merchant accounts. What we may need is a few other smaller companies who will serve as intermediaries between merchants and interswitch; a la GTpay for instance?
how does one pay using internet connection/interswitch card
i used my atm card to make transaction today by applying for my school program, my money was wihtdrawn [5,500]and the school did not comfirm i.what can i do and the admission is closin ending of this month.thanks
Ajani Kabiru, your first port of call should be your bank. Visit a branch of your bank as soon as possible. They would assist you or tell you what to do. All the best.
Hi
I forgot my pin and my bank cant realy help. what should I do to get the pin or to chenge the pin
am also a programmer,java,have you guys heard about softpurse?they have a similar mechanism,but i don’t think they are yet up to the task.a wonderful concept but still in it crawling stage,maybe if more merchants integrate in to their service they’ll give all that’s needed.softpurse.com
easytopupng.com uses this service.where you can buy recharge pins .
its intresting to know that a lot of people understand and know that Interswitch guys are ripping Nigerians off-imagine collecting a whopping 150k for sign up and another 1.5% on ALL transactons!thats probably the highest in the world, just imagine the thousands of merchants they would have if the entry cost is something in the range of 20-50k, know dozens of biz who would go online if they can effectively collect money for their services. greed is what is killing them anyway
Hey guys,
I concur with this guy below. Nigerians always wants to keep with the jones & use latest technology etc. While the basic infastructure which supports these systems are not in play.
electricity, good roads etc are and far and few between.
A system like GlobalDosh.com (www.globaldosh.com) which I & other Nigerians have been using for the past 5 to 6 years to send money to Nigeria and other friends have been using to buy things guaranteed for delivery in Nigeria.
-What is the good of having a real-time online transaction when NEPA(or whatever it’s called)takes light in the middle of the transaction?
-What is the sense when a seller refuses to accept Mastercard/Visa issued by the banks in Nigeria( e.g Amazon, paypal etc will not touch cards issued in Nigeria)?
-what is the use when you make payment online and seller then tells you they don’t deliver to Nigeria?
-What is the use of interswitch/etranzact if it is not internationally accepted? And not terribly reliable and secure in any case.
We should embrace more user-friendly system that does not cause any aggro, reliable since(I know at least 6 yrs ago) and that even guarantees your product delivery to Nigeria or your money back (i.e http://www.globaldosh.com).
-Femi
====Olatuni Adeoti wrote in March 2008=======
Nice commentary on the two system. Both eTranzact and Interswitch are bringing ecommerce to Nigeria.
However, they are only accepted in Nigeria.
there is a company I use all the time for payment from Nigeria called GLOBALDOSH(www.globaldosh.com) who allows payment to be made worldwide from Nigeria. I even load my GlobalDosh ewallet with Interswitch.
Most of the 25 banks offer Visa & MasterCard, Why reinvent the wheel? Why not signup for a 2CO (www.2checkout.com) account, they accept payments from Nigeria and also signups from Nigerian merchants. Forget interswitch!!!
Though it is not directly tied to your bank account, they can get your funds accross to you in a variety of ways that even includes a reloadable 2CO MasterCard (debit card).
This thing is just my headache at the moment. Meanwhile, after the initial 150K, do you have to renew at anytime??
I believe online payment is very vital to the growth of our economy.
Howbeit, Interswicth charges are on the high side and does not encourage growth in ecommerce in Nigeria. I think, like most greedy Nigerian, they are capitalizing on lack of competition and the fact that most foreign e-payment like paypal firm do not accept Nigeria merchants.
Dear Bloggers,
This is may not be the right forum for what I have attached below, however if you are an inter switch customer you may want to read the attached and notify your appropriate contacts accordingly. If this looks like 419 and feels like 419, it must be 419. BEWARE
@ Pat Nevin, there is a post that that here: Beware of fake interswitch emails
how can i send money from one bank to another bank all in Nigeria using ATM card on line?
Kingsley, I don’t think that is possible presently.
please I need the addrees of interswicth in lagos for enquires
Their official website is at http://www.interswitchng.com I suggest you visit the contact page on their website.
is there any idea or advice you cauld give if a private organisation want to make use of their service as a means of receiving or making payment
I suggest you visit their website here: http://www.interswitchng.com for everything you need to know about them or talk to your bank.
Technolgy is not the issue here for my programmer friends i think to get the right infrastructure in place takes a little more than java,c++ or what ever programming language out there, the politics, economics and other things about buisness has to be factored in, and believe me its far more complicated than u think.
Dear Friends,
I just tried to pay for a domain from NAIRAHOST i went to the bank and paid its 3days now and the domain hasnt been registered where can i buy a domain from a legitimate nigerian company….
You should contact Nairahost, Kelvin.
Hi guys, i’m pretty new to this site but i have read all your comments and i find it intresting. i actually reside in the UK but i am very much intrested in the Nigeria market, infact im about to start my own online business but as you all have said, the only problem is finding a reliable payment geteway.
Guys i will like to ask you if you know anything about SMS payment gateway, does it that technology exist in Nigeria? because im partialy reliying on it, infact i will be coming to Nigeria this weekend and i will like to meet you guys and shere ideas. If any one is intrested leave a message here and i will get back to you.
What do you know about VTN?
I know VTN is a brain-child of Graphcard in the USA and targetted at residents of Nigeria.
You have not answered my questions in my privious comments, and like i said i will be in Nigeria this weekend if any of you guy are intrested in hooking up.
I am interested in using the interswitch Webpay API for my business but really don’t know how to go about it. I have sent them a mail but still no reply…
Please can anyone tell me how to go about it?
Are there any special requirements or do I only have to cough out N150,000, sign some agreement papers to give them 1.5% from my hard earn cash?
I’ll be very greatful to receive an explanatory reply.
Thanx!
I assume you have a registered company and a bank account in the name of your company. Therefore, I suggest you speak with your bank as it is possible they can assist you with an InterSwitch merchant account. Emailing InterSwitch directly seems to be a fruitless exercise. Mails sent the email on their contact page info[at]interswitchng.com bounces!
I believe if we could form a sort of online merchants association, we can effective combat interswitch. I don’t think there is much infrastructure required to run the online payment system, it only involves programming knowledge and the integrity of the person or people involved.
If we all come together, employ a programmer to write a script that manages accounts online, it will be hosted on a secured server on the internet. All we need to do is gather money, pay for one interswitch or etranzact account.
When a person signs up for out payment gateway, he is assigned virtual fund in his account. The transaction is carried out through interswitch. Just like paypal,
Someone should please pick the idea and work on it.
I am not sure Interswitch would approve the implementation of your suggestion George. The bottomline is my view, is for us to collectively mount pressure on Interswitch to lower their fees.
it will be nice if we can register our debit card online
You do not need to register your card online. Don’t get scammed. Approach your bank for Internet Banking service if you want to monitor your accounts/cards online.
I am so pissed looking for a cheap payment solution for small biz
David georges idea is not out of place, it really isnt, just involves time resources and commitment
Hmm, really thinking of somthingi feel could work ( i mean an innovation not an interswitch hack) it definately wouldnt require infrastructure …..
get back to you guys
i will like to know if GTpay really works and if i can easily implement it on magento ecommer though i saw a Gtpay payment gateway module for sale on this site http://softdb.eu/gtpay-gtbank-magento-payment-gateway-p-34.html i hope it works with and how can i go about it.
I am not sure if the Magento module works well or not. I suggest you ask them for a demo.
I have implemented both Interswitch/WebPay/GTBank and Etranzact for drupal/ubercart ecommerce system before. So if you need something on this, please contact me via email. Thanks.
Thanks Z!
And what’s your email address…?
sorry… its:
zee at saibatek dot com
Hey guy, I’m currently working on my website and should be up and runing by November but you can still check out the holding page. If any of you guys know more about gayment gateways in Nigeria please share your thoughts, i am currently integrating the WebPay by interswitch, i understand that there other gateways such as Etranzact and GTBank. if you have and advice on this please contact me on my email: gakinfenwa [at] hotmail.co.uk. And also i’m looking for a set of skill individuals to work with on my website, if you are intrested please contact me, i will be coming down to Nigeria by the end of this month maybe we can have a chart. cheers!
sorry i want to know if there is anyone who can help with webpay integration i am trying to integrate thanks
yes, i can.
email me at: zee at saibatek dot com
Hi guys,
I haven’t been to this site for quite some time and my last post was probably back in 2008. I am amazed that people are still bothering themselves with the flip-flop transactional engines operated by either Interswitch or eTranzact.
globaldosh.com is what I used to collect my payment from clients within and without Nigeria. I don’t even have a website yet, but I work freelance by reference mainly.
You do not even need to pay to open an account. It’s free to open a regular account, inform them that you want to upgrade to merchant by email and presto!. You can receive money into your account worldwide through bank,paypal, western union etc
If you are a shopper as well, their is more security as globaldosh guarantees delivery of your service and/or goods or your money back.
Some of the benefits are as follows:
- No set up fee
- No programming
- Payment made directly into your nominated bank account on request or by cash or cheque
- A percentage is charged on withdrawal only
- No monthly charge
- No transaction charge
- GD points used, so no need for multi-currency manipulation
- Free money transfer worldwide
- Subsidised website-hosting for account holders only
- Executive services for account-holders
- You can view your GlobalDosh account in real-time.
ensure
- Their website is hosted on the internet’s backbone, hence, very fast
- Simple and easy to use
- Live administrators to guide you through.
That is my bit. I hate to come back in another year and still hear people grumbling about Interswitch,GTPay, eTranzact etc
All the best,
Femi Olajide.
Hi George,
I think your idea is fab and I’d be willing to put down money to make it work. If you’re serious pls email me laj00 at hotmail dot co dot uk.
hi All,
Re: Post no 35
ODA, I think your response is wrong there.
Interswitch purports on their website that you can make these payments through their side-kick, cashcard. However, I have tried the service before and it did not work.
You see the problem with Interswitch is that they tried to bite too much than they can chew.
If Interswitch wants to be a switch to banks, then it should stick to that and leave marketplace to develop third-party applications for whatever is popular with the consumers.
There is definitely a conflict of interest in my opinion, where the switch company is also promoting consumer products like cashcards etc.
You can’t be providing a service to the banks and then, start competiting with the bank to use that same service(I am talking about card-issuance).
Until, a clear direction is given in terms of distinct division of labour between all stake-holders, the on-going furore and confusion will persist.
Regards,
Femi
Re: Post 39
This information may be old now, but, try using gdproxy.com/WHostSpecial.htm
Your hosting will be up and running within 4-5hours.
You can also pay locally using the eWallet provided by GlobalDosh.com
Regards,
Femi
Re: Post 40
Dear Gabriel,
SMS payment exists in Nigeria. The first SMS payment was launched by FinBank(then, first atlantic)under the brand Flash Me Cash. It is still running well today.
firstinlandonline.net
I normally, load my GlobalDosh eWallet with it all the time.
Regards,
Femi
Re: Post 46
Hi Lekan,
Cheap and no sign-up fee service is available @
GlobalDosh.com
Regards,
Femi
I’m developer looking for a payment solution for my clients.
Having read the posts, I’m just wondering what connection Femi Olajide has with this GlobalDosh guys. Are you a marketer or something?
Anyway, I’ll check out all these options to determine the best, but I must say that its really amazing that a country like Nigeria doesn’t have many reliable but not to expensive web payment solution providers.
All the same, thanx guys for the thoughts
Max is not too far off the mark there. I am not a marketer for GlobalDosh, but as I use the system myself and receive payments within Nigeria and globally with my GlobalDosh Account, I guess it is in my interest that more people use the system and are aware of the system. In that regards, you can consider me as a promoter, albeit, unpaid one and not the employ of GlobalDosh.com.
Call me a preacher spreading the word about a service that is easy to use and has a pedigree in Nigerian market.
Pls Nigerians open your eyes. it gives me so much tears when i see posts like this. it is painful to see when pple are looking for solutions when they dont know he real prolemn. I have one word for all of you
“Globalization”
Think about it in this regards; Good or Bad for Developing Countries..
Pleas Creative pple like you guys should always put this into consideration. Stop begging master card to come for the love of the black race. CREATE YOUR OWN!!! AND MAKE IT FUBU PLEASE!!!
As a security conscious developer, having work with both systems(i.e integration), interswitch and gtpay, I will recommend interswitch anyday.
though expensive, it is more secure and safe to use.