A service providing entities which plays role of intermediate between banks and websites facilitating the communication of transaction information are known as payment gateway.
A service providing entities that play the role of intermediate between banks and websites facilitating the communication of transaction information is known as payment gateway. They conceive information from the payer bank and take the information to the receiving banks and take care of their input, i.e. whether the transaction is accepted or not
As per RBI guideline Payment gateway are entities that provide technology infrastructure to route and facilitate the processing of an online payment transaction without any involvement in the handling of funds
Applicability of guideline
The issued guideline is applicable on all payment gateways may also adopt technology-related recommendation as follow:
Others provided in annexure 2 of guideline
Existing Payment Aggregators shall achieve a net-worth of ₹15 crores by March 31, 2021, and a net-worth of ₹25 crores by the end of the third financial year, i.e., on or before March 31, 2023. All the time thereafter net-worth of ₹25 crores shall be maintained.
date/ Authorisation date
₹ 15 Cr. Net-worth
₹ 25 Cr. Net-worth
For Existing PAs
31/03/2021 or application date whichever is earlier
Net worth consists of paid-up equity capital, preferred securities that are compulsorily convertible to equity, free reserves, balance in the share premium account and capital reserves representing surplus arising from the selling of assets but not reserves generated by the revaluation of assets adjusted for accrued loss balance, the book value of intangible assets and deferred revenue expenditure if any. Compulsorily convertible preferential shares can be either non-cumulative or cumulative and must be convertible into equity shares and the shareholder agreements will specifically prohibit any withdrawal of this preferential capital at any time.
Basic requirements for registration;
Benefits of Gateway:
Cost-effective for a small transaction
The payment aggregator model aims to provide a boost for the processing of credit card & wallet payments, with a limited start-up or fixed costs. A variable merchant fee is applied to each successful transaction in place of start-up fees or fixed rates.
Easy Access payment, on spot
It's easy to submit and set up even better. You can start processing e-commerce payments directly after signing up, or just pop the quick swipe on your mobile phone and you're ready to make payments on the go.
In India payment gateway can be made within 3-7 working days. Easy to add on the website. Time is money, and the faster you begin processing; the faster profits begin to roll in.
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