{"id":2519,"date":"2020-03-19T11:03:37","date_gmt":"2020-03-19T05:33:37","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=2519"},"modified":"2024-05-28T15:17:39","modified_gmt":"2024-05-28T09:47:39","slug":"payment-gateway-license-india","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/payment-gateway-license-india\/","title":{"rendered":"Payment Gateway License in India"},"content":{"rendered":"

All of us must have experienced the ease and flexibility of online shopping in India. Moreover, the bill payments, mobile recharge, DTH recharge etc, are taking the route of the electronic way. So you have selected your services or goods to be purchased on a website, everything you selected has been added to your cart, now is the time for payment. This is the moment you are getting directed to the “Payment Gateway” of the site and for payment gateway site must be payment gateway license<\/a><\/strong>.<\/p>\n\n\n\n

Here Comes the Question Now- What is a Payment Gateway License and How Payment Gateway Works?<\/strong><\/h2>\n\n\n\n

Payment Gateways<\/strong> are intermediate between the banks and the websites facilitating the communication of Transaction information. They conceive information from the payer bank and takes the information to the receiving banks and note their feedback, i.e whether the transaction is approved or declined.<\/p>\n\n\n\n

The security of the funds transacted is an integral component of the payment gateways. The sensitive information such as Debit\/Credit Card Numbers, internet banking ids, and passwords, etc. need to be protected from any fraud and misrepresentations. It is for this reason that the card associations have created various rules and regulations governing security standards to be followed by anyone getting access to card information such as payment gateways. These rules and standards are called the Payment Card Industry Data Security Standard (PCI-DSS or PCI).<\/p>\n\n\n\n

RBI’s guidelines for the Regulation of Payment Aggregators<\/strong><\/h3>\n\n\n\n

On 17th<\/sup> March 2020, the RBI has laid down some stringent guidelines for regulating payment aggregators and payment gateways vide Circular RBI\/DPSS\/2019-20\/174-DPSS.CO.PD.No.1810\/02.14.008\/2019-20. The payment aggregators existing as on the date of this circular shall achieve a net-worth of Rs. 15 crores by March 31, 2021, and a net-worth of Rs. 25 crores by March 31, 2023. Moreover, new PAs shall have a minimum net-worth of Rs. 15 crores at the time of application for authorisation and shall attain a net worth of Rs. 25 crores by the end of the third financial year of grant of authorisation. The payment aggregators and gateways have been put under the direct supervision of RBI.<\/p>\n\n\n\n

How do Payment Gateways work?<\/h2>\n\n\n\n

The various tasks conducted by the Payment Gateways once the customer places the order from an online store, are as follow:<\/h4>\n\n\n\n