Payment Gateway Integration

Are you an e-commerce business owner looking to skyrocket your sales and enhance the shopping experience for your customers? 

Look no further! 

In today's digital era, having a seamless payment gateway integration is crucial to the success of your online store. A smooth and secure payment process not only boosts customer trust but also ensures that transactions are completed effortlessly, leading to higher conversion rates and increased revenue. 

With the right payment gateway integration process, you can provide your customers with a seamless checkout experience, allowing them to pay for their purchases quickly and easily. Whether you're a small start-up or an established enterprise, investing in a robust payment gateway integration can be a game-changer for your e-commerce business.

In this article, we will explore the benefits of seamless payment gateway integration and how it can help you drive more sales and grow your online business exponentially. Get ready to take your e-commerce sales to new heights with a hassle-free payment process that keeps your customers coming back. 

What is Payment Gateway Integration?

An online payment gateway integration is a designed technology that helps e-commerce companies manage digital payments from customers via online channels, like a website or mobile applications. It serves as an intermediary, bridging the gap between the customer, the merchant and the financial institutions binding them together. By way of example, it ensures the safety and security of transactions. 

Having an online payment gateway comes with innumerable benefits, which ensures convenience and promote a more user-friendly approach for the customers. You need not worry about the painstaking procedure like traditional payment methods, as it guides you to complete the transactions within a few clicks. Most importantly, this technology scores a hundred per cent in terms of enhancing the security of transactions. Where authorized gateways are seen employing advanced procedures to safeguard the data, and keep it intact, just by reducing the risk of fraudulent activities. Therefore, the payment gateway integration process comes with various features and will surely enhance the payment processes. 

Payment Aggregator: What is it all about?

As per the Reserve Bank of India definition entity that facilitates e-commerce sites and merchants to accept various payment instruments from the customers for completion of their payment obligations without the need for merchants to create separate payment integration systems of their own. It facilitates merchants to connect with acquirers. In the process, they receive payments from customers, pool and transfer them to the merchants after a time period.

Payment Aggregator Operation Model:

It handles the funds on behalf of the user, platform and merchant via a designated Bank Account i.e. Nodal/Escrow Account. Therefore it required the authorization from Reserve Bank of India under the Payment and Settlement System Act, of 2007.

Users do shopping on digital platforms. Now users need to make payments. Payment modes can be Wallet, Bank-Net Banking, Debit or Credit Card etc.

The platform is a marketplace of various service providers, sellers, financial services etc. They are defined as merchants. Merchants are on board by Platform on their agreed terms and conditions.

It involves the user, platform, merchant and Bank to complete any payment transaction. A user who does purchase or use the services listed on the platform is required to pay which is landed in the entity doing payment aggregation business. Users make payment forms available/listed Bank or Wallet or any acceptable payments mode i.e. POS, Card, UPI, QR to Platform of Aggregator. It has to manage the payment receipt from the user and bifurcate the amount into commission and actual to be reimbursed to Merchant then after releasing the payment to the merchant. It has a step on step process to ignite and close the transaction.

How to get a Payment Gateway License in India?

Security is an essential component of all payment gateways, as sensitive information such as credit/debit card numbers needs to be secured from any fraudulent possibilities. The card associations have formed a set of guidelines and security standards, which must be followed by payment gateway providers. This set of instructions and security standards is recognized by the name of Payment Card Industry Data Security Standard (PCI-DSS or PCI).

PCI Audit & Final Certification Activity

• PCI DSS Scoping & Gap Assessment
• PCI DSS Formal Risk Assessment
• PCI DSS Policy & Procedure Review, Template sharing
• PCI DSS Final Audit & Certification
• PCI DSS Final Certificate Report Attestation & Issuance (ROC, AOC, COC)
• Application Security Testing/VAPT for 2 applications Web, Android & iOS
• Application Secure Code Review for 2 applications Web, Android & iOS
• ASV Scan for up to 5 IPs (Pre-certification)
• Internal VA for up to 10 IPs (Pre-certification)
• External Penetration Test for 5 IPs (Pre-certification)
• Internal Penetration Test for 10 IPs (pre-certification)

Infrastructure Setup

• OS Hardening
• DB Hardening
• Patches Update
• DMZ and Internal Zone
• Centralized Antivirus Server
• NTP Server
• FIM Server
• MFA Server
• VPN Setup
• Firewall Rules

Network Architecture Diagram Documentation

• Firewall Configuration Policy
• DMZ & Internal
• Asset Inventory Detail
• Antivirus Policy
• Patch Management Policy
• Change Control Policy
• DB Access Policy
• Physical Security Policy
• Security Logs and Events Policy
• Backup Policy
• Data Retention and Disposal Policy
• Data Control and Access Control Policy
• Password Policy
• PCI DSS Awareness Training Policy

It is very much necessary to check whether the required documents/information are in order or not so the tentative basic checklist to begin with this registration process is:-

• Demand Draft of INR 10,000/- (non-refundable)
• The applicant is Company and The Company has the requisite Net Owned Fund.
• The Board of Director understand the business and legal and technical complexities involved to do this business. Educational Qualification and Experience Certificate of Directors.
• Members' funds are clear and clean. Net Worth and ITR of Members.
• Net Worth Certificate from Statutory Auditor
• Unaudited/Audited Financial Statement of the Company
• Incorporation Certificate along with Memorandum and Article of Association
• Details of Statutory Auditor and Banker
• Banker Report of Company, Director and Member.
• System Specification
• IS Audit Report and Cyber Security Audit Report

To obtain the payment wallet license, an entity shall be registered under the Companies Act, 1956 or the Companies Act, 2013

• Proof of position of the business
• Detailed business plan along with review model
• A minimum of two members or directors
• PAN and Current Account of the company
• Testing Report by Software certifying agency  describing System Flow and Code
• Compliance with PCI DSS

Business Requirement:

The most popular segment to take as an example is the online shopping portal i.e. e-commerce platform. Now e-commerce has a huge market share of doing business, making offline retailers and businesses, visible across India to do business at the PAN India level. But the pain area is an easy and convenient way of settling on payment proceeds.

In today’s era, where technology speeds up the operations, payment gateway integration plays a crucial role in putting the hassle to rest. Enjoy seamless and secured online payments and how it impacts your business activities in profitable ways. Let us have a look at the benefits it has in store for you- 

• Enhanced customer experience

The integration of a Payment Gateway is critical for ensuring smooth transactions and optimizing customer operations efficiently. It is by offering various payment procedures, including credit cats, debit cards and digital wallets, which allows for the business to cater to customer preferences. In this way, businesses are exposed to customers, who enjoy this flexibility, encouraging recurrent purchases. 

• Enhanced Security

With Payment Gateway Integration, security is never compromised. Our robust system ensures the protection of customer data, including personal and credit card details. The advanced encryption technologies solidify customer trust and prevent potential data breaches.

• Streamlined operations

It is by involving the payment gateway in your business activities, that you can assure someone of seamless integration, involving payment transactions. With payment gateway integration in place, businesses will be able to monitor payment status and figure out discrepancies, just by eliminating manual errors, while letting businesses focus on the tasks at hand. 

• Global expansion

By integrating a payment gateway, you can broaden your business operations and appeal to customers all over the globe. This system allows you to accept international payments and handle various currencies, enabling you to reach new markets and connect with a wider range of customers.

The process to integrate an online payment gateway records the following steps, which are as follows- 

• Research a suitable payment gateway provider 

It seems vital to look for the appropriateness of the gateway channels, packed with features or pricing structures. Every service provider comes with varying specifications, which sets them apart from others. In true terms, you need to go for the one that will suit your business needs and align with your business in apt ways. 

• Creating an account 

Once you have chosen the suitable payment services provider, the next step is to register your account on the platform with the necessary information, such as bank account details, business documentation and other documents.  

• You may customize the integration 

As mentioned, payment gateway integration comes with API (Application Programming Interface) imbued with truckloads of new features, which allow users to incorporate their services seamlessly on their mobile applications or websites. Work in cooperation with the development team to help you customize the integration based on your requirements.

• Test the integration

The last and final step is to test the integration in a way that ensures that payments are processed efficiently and securely. This involves a full-fledged procedure in place to undertake transactions or to run checks to avoid any potential issues.

• Go live

Once you have undergone testing results, you can make your integration go live and start accepting payments from your customers. 

Therefore, such is how you kick-start your payment gateway integration and streamline transactions in the best possible ways. 

Need and Regulatory Framework:

For the sake of brevity, the easy payment settlement system is been need an hour and that to be on a regulated framework, unlike the earlier recommendatory circular on directions for opening and operation of accounts and settlement of payments for electronic payment transactions involving intermediaries dated 24th Nov 2009 issued by Reserve Bank of India.

It took good years to define and design the regulatory framework and now after 10 years of evolvement and innovation on this particular segment, the Regulator has come up with Guidelines on Regulation of Payment Aggregator and Payment Gateway. It mandates the existing and new players with various requirements such as promoter fit and proper criteria, skilled Board of Directors with an in-depth understanding of this market, technology framework, capital adequacy and so on.

With an extensive background and profound expertise in Payment Gateway Integration, the team at Corpseed possesses years of experience in this field. Our adeptness in the intricacies of the process enables us to provide comprehensive consultation services to our clients, encompassing meticulous desk-based research, thorough documentation, and efficient coordination. Our ultimate objective is to facilitate businesses in successfully navigating the registration process. Consequently, Corpseed stands as the ultimate solution for all your business requirements.