Payment Gateway Audit Checklist for India www.deekpay.com

India Payment GatewayThe audit checklist is designed to meet the regulatory and security requirements of the Indian market. By adhering to the provisions in the Indian Payment Gateway Audit Checklist, organisations can ensure thatReserve Bank of Indiaor legal compliance with the implementation of industry regulations to protect the payment process from risk. The India Payment Gateway Audit Checklist is designed to check the compliance of businesses andPayment GatewayRegulates compliance to protect payment gateways in India. Cover every aspect to ensure the integrity and security of the payment gateway. A payment gateway audit checklist needs to be implemented by the organisation or payment gateway to address theIndia Paymentschallenges while strengthening systems to withstand weaknesses. The Reserve Bank of India's report onPayment aggregatorand Guidelines for Regulation of Payment Gateways implements the regulation of payment gateways with a focus on establishing a harmonised technical framework for payment gateways to assist and support payment aggregators in maintaining security measures to facilitate the growth of digital transactions by ensuring the security of online transactions in the Payment Gateway Audit Checklist for India.

What is a payment gateway?

Payment gateways allow businesses to accept payments from different options such as cards, digital wallets,UPI etc. This is known as merchanting and ranges from e-commerce industry to Software-as-a-Service (SaaS) business. Currently, most businesses useThird party paymentsProcessors to collect payments, validate customer accounts and make payments securely. The Payment Gateway ensures secure transmission of payment details to the acquiring bank to transfer the amount digitally. It acts as an intermediary between the customer and the merchant, maintains the security of account information through secure fund transfers and implements the India Payment Gateway Audit Checklist to mitigate the risk of non-compliance and prevent cyber-fraud, making digital transactions simple.

Read more:What is a payment gateway?

Types of Payment Gateway Audit Procedures in India

There are various types of payment gateway audit procedures in India and some of the major types are listed below:

Hosted Payment Gateway

Hosted payment gateways are one of the types of payment gateway audit programmes in India where customers are sent to additional pages hosted by the gateway for payment processing, making it easier for retailers to comply with payment card industry regulations.

Integrated payment gateway

In the India Payment Gateway Audit Programme, integrated payment gateways can be easily included in a merchant's online storefront or mobile application to provide a more specific user experience.

Mobile Payment Gateway

In the India Payment Gateway Audit Program, payment gateways are designed for mobile applications and optimised for mobile transactions to accept a range of payment options suitable for mobile consumers.

Direct payment gateway

Enables organisations to process payments without re-routing using the India Payment Gateway Audit Programme and provides a simplified and integrated checkout process.

Bank-owned payment gateways

These are provided and maintained by banks to have strong security and financial integration in the Payment Gateway Audit Checklist India.

digital wallet

Indian Payment Gateway Audit Procedure in Digital Wallet allows payments through digital wallet services that have been followed and accepted by many customers for secure and fast transactions.

Cryptocurrency Payment Gateway

The Indian Payment Gateway Audit Programme allows cryptocurrency exchange in cryptocurrency payment gateways to attract customers looking to restructure their payment methods.

Open Source Payment Gateway

The India Payment Gateway Auditor helps in providing access to the source code in open source payment gateways to enable customisation and changes as well as implementation requirements for the technology.

Functionality of the Payment Gateway Audit Checklist for India

Payment Gateway Audit Checklist India has a number of features that make payment gateways a convenient option for customers and merchants after an audit.

Approval of transactions

Payment Gateway Audit Checklist India will make transaction approval the most important part of the payment gateway. It supports online payments and makes the payment process simple for both customers and merchants. By using a payment gateway, customers can use multiple payment options on one platform without any inconvenience.

Easy Payment

Payment Gateway Audit Checklist India enables customers to make payments for their purchases easily using various payment methods on a single platform. By using different payment methods, customers and merchants can make payments easily.

Licence to execute transactions

Payment Gateway Audit Checklist India will help customers and merchants to grant licences to payment gateways as it acts as an intermediary between merchants and customers. The gateway is responsible for validating customer details and authorising payment transactions.

Transfer of funds

Payment Gateway Audit Checklist India is executed when the merchant's account receives the transaction amount through the payment gateway, easily and securely acting as an intermediary. Approval must be obtained from the payment gateway to comply with regulations and receive funds.

surety

The Payment Gateway Audit Checklist India ensures the security of the payment gateways. This is because payment processors receive sensitive and private information from their customers. Payment Gateway Audit Checklist India helps in encrypting the customer data before transmitting it more securely. Moreover, timely auditing will protect the customer's data from any third party attack or data leakage.

Transaction records

The India Payment Gateway Audit Checklist helps the payment gateway processor to keep track of every transaction made through it. In addition, merchants and customers are notified about the reasons for successful and failed transactions. These reports and records are very useful in maintaining accurate accounting and bookkeeping records.

Payment gateway work process

Payment Gateway Audit Checklist India works by following the process of working between a customer and a merchant in the digital world. The customer or the mechanic provides their payment details like card details, bank details etc. while using the payment gateway and the third party executing the payment gateway verifies these details. These details are encrypted by the payment gateway and sent to the issuing bank for verification. The card issuing bank then checks the authenticity of the card and the cardholder. After the verification process, the card issuer sends a response code to the payment gateway. This response code can be either an approval or a rejection. If the response is positive, the payment is authorised and the customer will receive a positive response code authorising the payment. The merchant bank then collects the payment from the card issuer. After receiving the confirmation and deducting the amount, the payment is transferred to the merchant's account through the payment gateway. If there is any obstacle or failure in the bank authorisation, the customer will receive an error message. If the authorisation is approved, the customer will receive a payment approval message and the response code will also provide the reason for any failure, such as insufficient funds or expired card.

Payment Gateway Audit Checklist for India

Here is a simplified checklist for auditing payment gateways in India for auditing purposes:

Compliance with regulations

The Payment Gateway Audit Checklist for India is used to audit payment gateways to ensure that the payment gateway complies with the regulations or guidelines issued by the Reserve Bank of India or the regulator for the functioning of payment gateways in India and to ensure that the transactions are carried out smoothly. It also ensures compliance with the Payment Card Industry Data Security Standard (PCI DSS) for secure processing of cardholder data.

Transaction security

Payment Gateway India Audit Checklist is used to maintain security by evaluating encryption methods to protect customer and merchant account data in transit. Auditing helps to validate security issues.

Authorisation and authentication

The India Payment Gateway Audit Checklist is used to validate secure user authentication by auditing the authentication process and ensuring that there are strong authorisation procedures in place to block illegal transactions.

Fraud prevention measures

The Payment Gateway Audit Checklist for India will include detecting fraud by reviewing and checking the effectiveness of fraud detection algorithms and techniques, and following procedures to monitor suspicious activity in real time and take appropriate action.

GST Compliance

The Ubdua Payment Gateway Audit Checklist is designed to validate that the payment gateway is compliant with tax laws to process Goods and Services Tax (GST) calculations and to ensure that transactions related to GST are accurately recorded and reported.

Legal Framework for Payment Gateway Regulation in India

The Reserve Bank of India has developed a Payment Gateway Audit Checklist for India, which must be adhered to in order to ensure that the payment gateway meets the required standards of security, efficiency and safety.Securities and Exchange Board of IndiaThe Insurance Regulatory and Development Authority (IRDA) and the Telecom Regulatory Authority (TRAI) are the other regulatory bodies that regulate the securities market and the Telecom Regulatory Authority (TRA). The Insurance Regulatory and Development Authority (IRDA) is also concerned with various payment gateways. However, the Reserve Bank of India plays a vital role in regulating payment gateways and monitoring audit checklist compliance. The regulatory audit checklist for payment gateways is given below:

Reserve Bank of India

The Reserve Bank of India regulates payment gateways under the Payment and Settlement Systems Act, 2007, which covers the authorisation, operation and security of payment systems in India under the guidelines issued by the Reserve Bank of India for the Payment Gateway Audit Checklist for India.

Payment and Settlement Systems Act, 2007 (PSS Act)

Payment systems are set up for payment gateways to obtain prior approval from the Reserve Bank of India under the Controlling Payments Regulations (also known as the PSS Act). Some examples of payment systems include debit and smart cards, money transfers etc.

Payment Card Industry Data Security Standard (PCI-DSS)

PCI-DSS is regulated globally for the protection of payment card data to comply with requirements for the protection of cardholder data.

P2P Lending Platform Directive, 2017

This P2P Lending Platform Directive refers to the Lender's risk rules and regulations and various other restrictions relating to the activities of the P2P Lending Platform.

National Payments Corporation of India on UPI payments

National Payments Corporation of India(also known as NPCI) is an important audit checklist for payment gateways. It is subject to RBI In India, the NCPI is responsible for overseeing the supervision of remittance services, which must be assessed to ensure that remittance services using the UPI platform meet the guidelines set out in the NCPI regulations and its Prudential Standard for Eligibility. In India, these NPCI regulatory control UPI payments.

Recommended Reading:What you need to know about UPI, India's payment channel!

Information Technology Act 2000

The IT Act regulates the field of electronic transactions and digital signatures in India and hence payment gateways need to comply with the laws related to data privacy, security, cyber security etc. to sustain the growth of digital transactions in India.

Foreign Exchange Management Act (FEMA)

The Foreign Exchange Management Bill regulates foreign exchange transactions in India andCross-border payments, and help payment gateways to regulate foreign exchange globally.

tax laws

Payment gateways are subject to Indian GST regulations by complying with GST filings and requirements.

Key Documents Required for Payment Gateway Licence in India

Key documents required to obtain a payment gateway licence include:

company documents, such as a certificate of incorporation or a copy of the Companies Registry. PAN card details of company directors. Proof of address of director and registered office. directors' digital signature certificates. director's identity card number. information about the company's bank account. Reports from software organisations on payment gateway test code.

Reserve Bank of India's latest guidelines on cross-border payments

The Reserve Bank of India issued a Master Circular on 31 October 2023 on cross-border payments ofpayment aggregatorRegulation is carried out. The Circular is intended to directly regulate all entities that facilitate cross-border payment transactions for the import and export of goods and services. Entities facilitating cross-border payment transactions are classified as payment aggregators for cross-border transactions and the framework for carrying out such activities is provided in the Circular, which sets out the types of authorisations required and the netting requirements. This Circular replaces theOnline Payment GatewayService Providers.

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