Overview of Payment Gateway License
A payment gateway license is a legal authorization that allows a business to accept online payments from customers using credit cards, debit cards, net banking or any other digital payment mode. This license is issued by the Reserve Bank of India (RBI) and is mandatory for businesses wishing to operate online payment gateways in India. In addition to purchasing, this digital platform facilitates compensation for bills and recharge.
Eligibility criteria for Payment Gateway License in India
To be eligible for a payment gateway license, companies must fulfil the following criteria
- company Registered under the Companies Act, 2013 or any other applicable law.
- The company must have a minimum paid-up capital of INR 15 lakhs.
- The company must have a dedicated office space with the necessary infrastructure for providing payment gateway services.
- The company must have a robust technology infrastructure that ensures secure and reliable payment processing.
- The company must comply with all the guidelines and regulations issued by. The Reserve Bank of India (RBI) and other relevant authorities.
- The company must have a clear and transparent pricing policy for its services.
- The company must have adequate measures in place for the prevention of money laundering and other financial crimes.
- The company must have a strong risk management framework in place to identify and mitigate potential risks associated with payment processing.
- The company must have a well-defined dispute resolution process for handling customer complaints and disputes related to payment processing.
Documents required to obtain an Payment Gateway License
- Memorandum and Articles of Association: MOA and AOA
- Certificate of Incorporation: A copy of the certificate of incorporation of the company must be submitted.
- Bank Statements: Bank statements for the past six months must be provided to demonstrate the financial stability of the business.
- Infrastructure Details: Details of the office space, including ownership or lease documents, must be provided. Along with details of the necessary infrastructure for providing payment gateway services.
- Technology Infrastructure Details: Details of the technology infrastructure used for payment processing, including hardware and software, must be provided.
- Pricing Policy: A clear and transparent pricing policy for payment processing services must be provided.
- Risk Management Framework: A well-defined risk management framework must be provided to identify and mitigate potential risks associated with payment processing.
FAQs About Payment Gateway License?
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