{"id":2623,"date":"2021-02-23T08:49:23","date_gmt":"2021-02-23T08:49:23","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2623"},"modified":"2021-02-23T08:53:07","modified_gmt":"2021-02-23T08:53:07","slug":"procedure-for-payment-gateway-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/","title":{"rendered":"Procedure for Payment Gateway License: A Simplified Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">After\nthe demonetization, people in India have experienced the flexibility and ease\nof online shopping. Payment Gateway is a financial service, and it is provided\nthrough an e-commerce application. Apart from online shopping, even the payment\nof bills, DTH recharge, mobile recharge, etc. are also taking the path of the\ndigital or online approach. We pay a bill or purchase anything online, we have\nto click pay now, and we are directed to a new page. This is the payment\ngateway site on the website where we can make payment for goods or services,\nand the payment gateway site must get furnished with the <strong><a href=\"https:\/\/swaritadvisors.com\/payment-gateway-license\" class=\"text-primary\">payment\ngateway license<\/a><\/strong>. The complete procedure for payment gateway license is\ndirected under the Payment and Settlement System Act, 2017. This is set up by\nthe Reserve Bank of India, which carries all kinds of regulations and\nmanagement of India&#8217;s payment system. In this blog, we discuss the procedure\nfor Payment Gateway License.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a56074f8ea2b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a56074f8ea2b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#Payment_Gateway_License_%E2%80%93_An_Overview\" title=\"Payment Gateway License \u2013 An Overview\">Payment Gateway License \u2013 An Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#Different_Types_of_Payment_Gateway_Providers_in_India\" title=\"Different Types of Payment Gateway Providers in India\">Different Types of Payment Gateway Providers in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#Basic_Requirements_for_obtaining_Payment_Gateway_License_in_India\" title=\"Basic Requirements for obtaining Payment Gateway License\nin India\">Basic Requirements for obtaining Payment Gateway License\nin India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#What_are_the_Documents_required_for_during_the_Procedure_for_Payment_Gateway_License\" title=\"What are the Documents required for during the Procedure\nfor Payment Gateway License?\">What are the Documents required for during the Procedure\nfor Payment Gateway License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#What_is_the_Procedure_for_Payment_Gateway_License_in_India\" title=\"What is the Procedure for Payment Gateway License in\nIndia?\">What is the Procedure for Payment Gateway License in\nIndia?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Payment_Gateway_License_%E2%80%93_An_Overview\"><\/span>Payment Gateway License \u2013 An Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is essential\nto know the meaning of Payment Gateway License then you can start the procedure\nfor Payment Gateway License in India. Payment Gateways are intermediate in\nbetween the websites and the banks promoting the delivery of transaction\nreport. They collect the data from the payer bank and transmit the data to the\nreceiving bank. Usually, they note their feedbacks, such as the transaction is\nrejected or approved.&nbsp;<\/p>\n\n\n\n<p>The sensitive data should also be protected from any fraud and misrepresentation such as login credentials of internet banking, debit card number, credit card numbers, etc. Because of this reason, there are some governing security standards which should be followed by anyone getting the access of such information such as payment gateways by the card associations along with several rules and regulations. These rules and regulations are defined as the&nbsp;<em><strong>PCI-DSS or PCI (Payment Card Industry Data Security Standard).<\/strong><\/em><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/requirements-for-payment-gateway-license\/\">Requirements for Payment Gateway License: A Complete Guide<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Payment_Gateway_Providers_in_India\"><\/span><strong>Different Types of Payment Gateway Providers in India<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the Indian market,\nthere are two different types of Payment Gateway Providers, which enables the\nbusiness to approve payment from national or international customers in INR or\nIndian National Rupees. They work with the support of Net Banking and Debit or\nCredit Card arrangements. You can check the two different types of providers\nmentioned below:<\/p>\n\n\n\n<ul><li><strong>Second Party Providers:<\/strong>&nbsp;Parties starting from Rs. 30,000 (setup costs are very high) such as ICICI, HDFC, and Axis  having low TDR or Transaction Discount Rate with lower transaction fees. It would be expensive initially for startups or small businesses, and there is no way going for this category of providers.<\/li><li><strong>Third-Party Providers:<\/strong>&nbsp;These providers such as CCAvenue, Direct Pay, EBS, and PayU which charges setup and annual fee, but some even don\u2019t charge that. Most of them cost around 2% to 4% TDR (Transaction Discount Rate). By undoubted, the providers regarding the future business goals of the concern can somewhat get negotiated.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_Requirements_for_obtaining_Payment_Gateway_License_in_India\"><\/span>Basic Requirements for obtaining Payment Gateway License\nin India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some requirement for obtaining Payment Gateway License in India:<\/p>\n\n\n\n<ul><li>Minimum of two directors or\nmembers is required.<\/li><li>Address proof of the business.<\/li><li>Next five-year business plan.<\/li><li>The company must be registered\nunder the Companies Act, 1956 or 2013.<\/li><li>Current Account and PAN of the\ncompany.<\/li><li>Service Tax Registration\nNumber.<\/li><li>Compliance with PCI DSS.<\/li><li>The flow of system and repost\nof code test by any software agency.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documents_required_for_during_the_Procedure_for_Payment_Gateway_License\"><\/span>What are the Documents required for during the Procedure\nfor Payment Gateway License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some vital documents required for during the procedure for Payment Gateway\nLicense:<\/p>\n\n\n\n<ul><li>Submit a copy of Certificate of Incorporation (COI) of the company received from <a href=\"https:\/\/en.wikipedia.org\/wiki\/Registrar_of_Companies,_India\">ROC<\/a> or Registrar of Companies.<\/li><li>Submit PAN card and address proof of the directors.<\/li><li>Submit Digital Signature Certificate (DSC) and Director Identification Number (DIN) of the directors.<\/li><li>Address proof of the registered office.<\/li><li>Bank Account details of the company.<\/li><li>Next five years of business plan of the company.<\/li><li>Code testing report by a Software Agency.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Procedure_for_Payment_Gateway_License_in_India\"><\/span>What is the Procedure for Payment Gateway License in\nIndia?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the detailed procedure for Payment Gateway License in India:<\/p>\n\n\n\n<ul><li>The first step of the procedure\nfor payment gateway license is to file an application in the specified Form A\nas per Section 5(1) of the PSS Act, and this application shall be made at the\nCentral Office of the Reserve Bank of India (RBI) at Mumbai or other offices of\nthe RBI as may be prescribed by it from time to time.<\/li><li>According to Section 6, the\napproval from the RBI for granting the authorization is optional. The Reserve\nBank of India has the power to hold such inquiries as it may consider for the\nsatisfying purpose itself about the detail&#8217;s authenticity that the applicant\nhas submitted and for checking the authorizations of the involved participants.<\/li><\/ul>\n\n\n\n<p><strong>Following are some conditions\nthe RBI shall take into account before issuing the authorization:<\/strong><\/p>\n\n\n\n<ul><li>The requirement for proposal\npayment services that have been suggested to be commenced by it.<\/li><li>All the technical standards\nthat have been set for the payment services of the proposed payment system.<\/li><li>The terms and conditions\nincluding any security procedure for operation of the recommended payment\nsystem.<\/li><li>The method in which the\ntransfer is completed in the specified payment system.<\/li><li>The manner for getting payment\ninstructions that affect the payment responsibilities or duties under the\nproposed payment system.<\/li><li>The financial experience status\nof the management and applicant\u2019s integrity.<\/li><li>The terms and conditions that\nmonitor the customer relationship with the payment providers.<\/li><li>Consider all the monetary and\ncredit policies.<\/li><li>Consider all the time frame for\nauthorization.<\/li><li>Once the Reserve bank of India\nis satisfied that all the requirements laid down in Section 7 (1) gets\nfulfilled, it may issue the certificate of authorization in Form B to start and\ncarry on a payment system to the applicant.<\/li><li>With a utmost period of six\nmonths, the Reserve Bank of India is required to process the authorization\napplication, as per Section 4 of PSS Act. It can be articulated from the date\non which the application has been filed for approval.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can only complete the procedure for Payment Gateway License once you know all the requirements, documents required for obtaining Payment Gateway License. The payment gateway has linkups with several banks such as HDFC, ICICI, etc. If the bank refuses, then the payment gateways linkup with some other partner banks for the merchant agent registration. For more information, please contact <strong><a href=\"https:\/\/swaritadvisors.com\/\" class=\"text-primary\">Swarit Advisors<\/a><\/strong>.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-become-a-payment-gateway-service-provider-in-india\/\">How to become a Payment Gateway Service Provider in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After the demonetization, people in India have experienced the flexibility and ease of online shopping. Payment Gateway is a financial service, and it is provided through an e-commerce application. Apart from online shopping, even the payment of bills, DTH recharge, mobile recharge, etc. are also taking the path of the digital or online approach. We [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60,56],"tags":[419],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2623"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2623"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2623\/revisions"}],"predecessor-version":[{"id":2628,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2623\/revisions\/2628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2624"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}