Overview of online payment gateways in India www.deekpay.com

How to get an online payment gateway in India?

on-linePayment GatewayOnline transfers are realised through partnerships with different entities. They have become an integral part of the online platform.

For organisers of websites or e-commerce platforms, a payment gateway is like a business solution in terms of software in order to receive online payments from the world. Since sensitive data of the stakeholders are stored in the payment gateway, it is important that the payment gateway works safely and securely.

Technically, payment gateways facilitate the transfer of information between payment portals and front-end payment processors/acquiring banks.

for example CCAvenuePaypal,PayURazor pay, etc.

How do payment gateways work?

The cardholder goes to a merchant, purchases a product or service, and pays for it with their credit card at an enabled POS system. It takes about three seconds from swipe to approval, where the payment gateway does all the work. It sends the instruction to charge a specific amount from the swipe machine (if it's a brick-and-mortar shop) to the merchant's bank, then to the card company, and finally to the issuing bank that matches the card. The issuing bank then checks the credit limit of the cardholder, accepts or rejects it accordingly, and sends the instruction back to the card company, then to the merchant's bank, and finally to the merchant. Thanks to the payment gateway, all this process is completed in less than three seconds. All transactions are settled and deposited into the merchant's bank account on the same day, and the cardholder receives a bill or statement at the end of the month. In total, there are about five counterparties involved when a transaction takes place: The credit card holder; The issuing bank, i.e. the bank that issues the credit card; Credit card brand; Merchant banks; Merchant's shop, vendor or e-commerce site.

What is the Payment Gateway Assurance Mechanism?

PCI - DSS guidelines help protect card details and other relevant information during transactions.

The Payment Card Industry Data Security Standard (PCI) is a collection of security standards designed to protect card information throughout and beyond financial transactions. Most companies involved in commercial banking, cryptocurrency, or card issuance are ready for PCI compliance to ensure an ultra-high level of security for all transactions. It ensures a highly secure environment.PCI DSS is managed by the Payment Card Industry Security Standards Council. This is an independent association created by the major card brands. Examples include VISA, MASTERCARD, AMEX, JCB and others. The Payment Card Industry Security Standards Council (PCI SSC) was established on 7 September 2006 to manage the ongoing development of Payment Card Industry (PCI) security standards, with a core focus on improving the security of payment accounts throughout the transaction process for the benefit of consumers.

There are currently more than 900 centres around the worldPayment service providers.

What is the process of registering a payment gateway in India?

Registration of a payment gateway requires the formation of a private company, a public company or a limited liability partnership, as well as other requirements, such as PAN, TAN and GST, etc. Online payment gateway companies are service providers to the merchants and hence need to collect GST from the merchants providing their services. In order to collect these charges, GST number is also required. Payment gateways act as payment security organisations and PCI - DSS compliance is a must. Apply to be a Merchant Service Provider / Payment Facilitator for major banks. Banks will approve applications based on the credibility and standing of the Payment Gateway applicant. The application must fulfil all conditions. Once approved, the next step is to consider whether to process the online banking opening and acceptance, this step is the most difficult as it is here that the banks need to be persuaded to assign an account manager to them, thus acting as an aggregator. Acceptance of VISA/MASTERCARD, i.e. the need to co-operate with the card issuing companies, which have a direct relationship with the banks. Preparation of the website and other social media to be put into operation along with the operational viability of the gateway.

The case of online payment gateways in India

In India, only banks can actually be online payment gateways, while others can only act aspayment aggregator(e.g. Pay TM) operations. This is RBI This is regulated by the Payment and Settlement Act 2007 and the Payment and Settlement Systems Regulations 2008.

In order to operate an online payment gateway, an application has to be made under the Payment Clearing Systems Regulations 2008 in the form prescribed therein and on payment of the prescribed fee. The application form should be accompanied by all relevant information about the applicant, systems and technology, financial solvency, etc. The Superintendent of Banks of India has authorised payment system operators for prepaid payment instruments, card schemes, cross border remittances, ATM networks and centralised clearing arrangements.

Reserve Bank of IndiaIt is stipulated that non-banking institutions issuing payment instruments are required to maintain outstanding balances in an escrow account with any designated commercial bank. The guidelines also make specific reference to the debits and credits permitted in the said escrow account, as shown below:

Credits:

Payments received for the sale/recharge of individual production protection schemes, including those received at agency locations Refunds received due to failed/disputed/returned/cancelled transactions.

Borrower:

Payments made to various merchants/service providers to reimburse claims received from them. Payments to the Sponsor Banks for processing fund transfer instructions received from PPI holders, as permitted by RBI from time to time. Payment of applicable government taxes (collected from the buyer along with the PPI sale/recharge amount). Refunds for cancelled PPI transactions in case of incorrect loading/reloading of PPI or loading/reloading of PPI through fraudulent means (in case of established incorrect transfers/fraud). These funds must be credited back to the same source of funds. These funds cannot be forfeited until the case is processed. Any other payments due to the individual consumer price index issuer in the normal course of the individual consumer price index business (e.g., service fees, forfeited amounts, commissions, etc.). Any other liabilities as directed by the regulator/court/law enforcement agency.

Thus, in simple layman's terms, an online payment gateway can include all entities that utilise any electronic/online paymentThe model collects payments from customers for goods and services from merchants and subsequently facilitates the transfer of those payments to the merchants in order to ultimately settle the debts of the paying customers.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.