Thursday, July 26, 2018

Starting a Payment Gateway in India


A payment gateway is a safe and secure service that enables online merchants or traders to accept online payments via different digital methods like credit cards, debit cards, Net-banking, UPI and virtual wallets. Starting a payment gateway in India can be quite challenging. The primary registrations would involve registering the company, opening a bank account and getting the digital signature certificate.

The other obligatory process that the would-be payment gateway service provider is required to fulfill is:-

The service provider needs to get the gateway complaint with the laid down policies and regulations by PCI DSS that stands for Payment Card Industry Data Security Standard. The policies about regulating the processing of debit and credit card payments and misusing the personal information of the cardholders. This regulatory body was launched in 2006 with the sole objective of making payment processing secure and safe.

The next step is to get the merchant service provider (MSP) or payment facilitator certificate. It would need signing up with different banks, after due approval from each bank, depending on the credibility of the service provider. It is a time taking process, especially if applied for Net-banking as banks take time to authorize the sign-up. This certificate is required because the payment gateway can validate transactions via different cards once the service provider is empowered with this certificate. Alternately, the payment gateway service provider can also apply for an ISO or Independent Sales Organization certificate that makes him a sales agent of different card associations.

A payment gateway service provider needs to open a merchant account with an acquiring bank. This account will enable the merchant to receive different kinds of payment direct into his account.

Owning a payment gateway can be an expensive option requiring colossal investment as well as time taking because of all the above documentation process. Hence many online businesses do not have their gateway; they instead go in for a hosted portal or an integrated one. In the former, the customer on the e-commerce site needs to leave the e-store and move to a payment processor’s website to enter his payment details. In the latter, the customer enters the payment details in the e-commerce site only. Since customers today are well aware of the existence of cybercriminals and hackers around, it is imperative that both the types of platforms be enabled with maximum security features so that customers can trust and rely enough on the merchant site to continue with their online shopping.

Now, the question that now arises is that if a merchant wants either of the payment gateways is it easy to integrate with the merchant site? Integrating a hosted gateway is comparatively more comfortable and takes lesser time. Such integration process requires changes at the front-end of the merchant website which can be done by following instructions mentioned on the gateway manual. Using the integrated payment gateway would require a professional IT and software specialist as it needs coding and scripting related work at the backend of the website.

Author: verified_user