{"id":34906,"date":"2021-08-26T14:48:03","date_gmt":"2021-08-26T09:18:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=34906"},"modified":"2025-01-07T16:56:30","modified_gmt":"2025-01-07T11:26:30","slug":"online-payment-gateway-license-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/","title":{"rendered":"Overview of Payment Gateway License in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">With\nthe digital India and the increase of online shopping in India, it has immensely\nincreased the benefits of flexibility and ease of online payment which is offered\nby this platform. The term Payment Gateway signifies a financial service that\nis granted by way of an application which is an e-commerce service provider. In\nthis article, we will continue to read about the Payment Gateway License\nin India and other related details.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><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><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/#What_is_Payment_Gateway_License\" >What is Payment Gateway License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/#How_does_the_payment_gateway_work\" >How does the payment gateway work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/#What_are_the_components_of_payment_gateway_license\" >What are the components of payment gateway license?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/#What_are_the_Benefits_on_Obtaining_Payment_Gateway_License\" >What are the Benefits on Obtaining 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:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Payment_Gateway_License\"><\/span>What is Payment Gateway License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>RBI has issued certification called <a href=\"https:\/\/corpbiz.io\/payment-gateway-license\" title=\"Payment Gateway License in India\"><strong>Payment Gateway License<\/strong><\/a>&nbsp;which allows the applicant to set up and run a payment gateway. In simple terms, a&nbsp;payment gateway means a gate by way of which all the electronic transactions take place. It is first done by establishing a secure and safe line between the seller and the customer and then it gives a confidential pathway through which the customers can enter their personal information and bank details to complete their transaction. All through this process, it makes sure that the payment gateway has securely connected either the bank account to the bank of seller bank or the digital&nbsp;payment wallet of the customer or his accounts and only after then, it allows the transaction to take place. However, before starting a Payment Gateway service in India, it is important to obtain the Payment Gateway License from the <em><strong>Reserve Bank of India<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Reserve_Bank_of_India\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>. RBI has promoted this license to:<\/p>\n\n\n\n<ul>\n<li>For promoting secure transactions online.<\/li>\n\n\n\n<li>For making sure that these payment gateway does not compromise the personal information of the sellers or the customers.<\/li>\n\n\n\n<li>To make sure that no information is vulnerable.<\/li>\n\n\n\n<li>&nbsp;To make sure that no additional payment gateway charges are imposed on the users.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_the_payment_gateway_work\"><\/span>How does the payment gateway work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The payment gateway process work in three stages:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/payment-gateway-work.png\" alt=\"payment gateway work\" class=\"wp-image-34948\" width=\"505\" height=\"474\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/payment-gateway-work.png 842w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/payment-gateway-work-300x281.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/payment-gateway-work-768x721.png 768w\" sizes=\"(max-width: 505px) 100vw, 505px\" \/><\/figure><\/div>\n\n\n<ul>\n<li><strong>Encryption<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>Encryption takes place when the customer enters his information and details in the browser of the payment gateway. That information\u2019s are encrypted with the purpose to give protection from the prying eyes.<\/p>\n\n\n\n<ul>\n<li><strong>Authorization<\/strong>:&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Those encrypted information is then forwarded to the banks which does the decryption of the same with their private key to check whether the details provided are correct or not.<\/p>\n\n\n\n<ul>\n<li><strong>Finalization<\/strong>:\n&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If all the details are found to be true and correct, then the initiation of transaction process is done through the payment gateway.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/complete-outlook-of-payment-bank-license-online-in-india\/\">A Complete Outlook of Payment Bank License <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_components_of_payment_gateway_license\"><\/span>What are the components of payment gateway license?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>There are two components of an&nbsp;online payment gateway:<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li><strong>Merchant Agreement: <\/strong><\/li>\n<\/ul>\n\n\n\n<p>It is important for&nbsp;those\nwith the payment gateway license to enter into an agreement with the concerned\nmerchant who uses the gateway.<\/p>\n\n\n\n<ul>\n<li><strong>Secure\nelectronic transactions<\/strong>:<\/li>\n<\/ul>\n\n\n\n<p>The security system is responsible to verify\nthe information of the user but without any peeking into it. By doing so it\nverifies and authenticates the data\u2019s without any compromise with the user\u2019s Debit\ncard\/ Credit card\/net banking information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Benefits_on_Obtaining_Payment_Gateway_License\"><\/span>What are the Benefits on Obtaining Payment Gateway License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The benefits of obtaining the Payment Gateway License are as given below:<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li><strong>White Label Wallet<\/strong><\/li>\n<\/ul>\n\n\n\n<p>It is\nimportant to note that few of the payment gateways allow customers to do\ndigital transactions from the applications of mobile wallet. It is the most\nrecent trend, as it permits the users to perform all their operations and\ntransactions from one place.<\/p>\n\n\n\n<p>In additional, one can without any difficulty transmit the amount from his bank account to the <a href=\"https:\/\/corpbiz.io\/mobile-wallet-license\" title=\"Mobile Wallet License\">mobile wallet<\/a> application and then can utilise the same for doing payments on different mobile websites or applications.<\/p>\n\n\n\n<ul>\n<li><strong>PCI \u2013 DSS Wallet<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The compliance\nof the PCI \u2013 DSS Wallet grants security to everyone who is the user of the\napplication by securing their personal information in the gateway for the recurring\npayments.<\/p>\n\n\n\n<ul>\n<li><strong>Fraud Screening Tools<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Some of\nthe payment gateways give their customer the advantage of Fraud Screening Tool with\nthe purpose to lessen the risk of losing personal data.<\/p>\n\n\n\n<p>The\nterm Fraud Screening Tools consists of the Card Code Value, Address\nVerification Service, and Card Verification Value.<\/p>\n\n\n\n<p>Further,\nit is imperative to note that the most important objective of these tools is to\nvalidate that there is no transactions of fraud going on. Furthermore, one more\nsignificant advantage of a payment gateway is that it allows dealings and transactions\nand from numerous users and at the same time. This on its own makes the same possible\nfor any customer to sell or buy goods &amp; services whenever he wants.<\/p>\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>The basic requirements of getting the Payment Gateway License in India should be qualified before getting the license and after following the registration procedure one shall be eligible to get the license. It is important to follow all the procedures correctly and submit the required documents for obtaining the license in time.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/complete-outlook-of-payment-bank-license-online-in-india\/\">A Complete Outlook of Payment Bank License <\/a><\/mark><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the digital India and the increase of online shopping in India, it has immensely increased the benefits of flexibility and ease of online payment which is offered by this platform. The term Payment Gateway signifies a financial service that is granted by way of an application which is an e-commerce service provider. In this [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":34946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[329],"tags":[1934],"acf":{"service_id":"92"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":4451,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34906"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=34906"}],"version-history":[{"count":38,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34906\/revisions"}],"predecessor-version":[{"id":68222,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34906\/revisions\/68222"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/34946"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=34906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=34906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=34906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}