It is very simple, easy and free to open a merchant account in India with PayKun and this will definitely help you grow your business
Why not provide multiple payment method options if you can, which makes it easy, secure, fast, and convenient for you and your business. This can be possible by getting a merchant account with a Payment Gateway for the digital payment collection.
You may get a merchant account provider directly as a Bank, but it would provide limited payment options, it would charge extra fees for setup and maintenance and the after-services are not good. Thus, the best option is to get merchant account services from an ideal payment gateway.
The importance of collecting online payments has already been understood by the business community. Any kind of business needs to give a setup for collecting that.
Well, if you have been using a single payment mode like just getting a bank transfer, or a single wallet option or the most trending one – UPI payment transfer, then this is fine to some extent. However, this is not enough for the growth of your business because the customers demand their preferred payment methods at all times due to the various options available to them today.
So, what is a Merchant Account exactly?
These are the bank accounts controlled by the respective banks. The payments of the online transactions are first routed to these bank accounts from the issuing bank (customers’ bank account).
Later, as per the respective settlement cycle of the merchants with the payment gateway account, the settlements are credited in their bank accounts. This account represents the payment gateway but is not the same as that.
- The funds in this account are considered as the third-party money, that cannot be invested or earn interest and is only to be transferred where it belongs.
- The funds are credited after deducting the payment gateway fees
- The refunds are also routed through this account.
- The numerous payments of a single merchant are collected and settled together instead of making multiple entries.
- Acquiring banks provide these kinds of accounts. Card Processors and these banks are also responsible for fraud detection on the transactions done by the customer.
What points are to be taken care of in getting a Merchant Account?
It is a hassle-free process with the basic requirements and it includes the below-mentioned aspects:
1. Know your payment gateway
Your business, your requirements. For that, it is required that you know if the particular payment gateway fulfills the requirements that you want to for your merchant account, such as:
- Per transaction fees (TDR – transaction discount rate)
- Set up and maintenance charges
- Integration process and supported platforms
- Available Plugins and SDKs
- Support Quality after post-activation of account
- Available Payment Links / Master Links feature
- International Services
- Multiple Website Integration (if required)
- Payment methods available, etc.
2. Does not take much time
The fact is, the activation of a payment gateway account and subsequently, the merchant account takes no time. It can be activated within a few hours with no hassle and very few steps. The condition is that all the necessary requirements are fulfilled from your side.
Due to the RBI rules, regulations, and guidelines and of course to the necessary precautions against the fraudulent activities through the payment gateway, there are certain obligatory requirements to be fulfilled to activate a merchant account. These requirements depend on various aspects such as the business model, the type of business, and its activities, the history of the business, banking obligations, etc.
These are mentioned in the further part of this article and they are important to be taken care of before and while an online application with the merchant account service provider, PayKun.
This solely depends on the type of business registration. However, the basic KYC documents are necessary for registration purposes. There have been various frauds and cybercrimes prevailing which makes it necessary to protect the money of the customers and save them from potential frauds.
Thus, though the documentation part is not very stringent, it is done in the right way by the qualified team members of the onboarding team.
4. Getting a Business License
The right way to approach your business activities is to get it registered and get a valid license. It becomes very easy to get a merchant account when your business activities are licensed.
This becomes a necessity in case of certain kinds of activity and an easy solution for the quick process for the registration. The process of getting a business license again depends on the place where your business is set up in India, your business activities, and the business type that you wish to establish such as the private limited, partnership, LLP, public limited, etc.
5. Setting up a Bank Account for business payments
The above link for documents also includes the details about the type of bank account required on the basis of the type of the business.
Most commonly, for a registered business it is necessary to have a Current Account. For the Individuals and Sole Proprietorship businesses, the requirements are liberal but for business transactions, it is recommended to have a Current Account.
Refer here for Bank Document Requirements
6. The additional documents
In case you are a high-risk business or you would like to process the transactions of the high-ticket items and would like to increase the transaction limit, you would require to submit some additional documents for verification purposes. This may include the last six month’s bank statement of the registered bank account or the payout statement of another payment gateway that you were using. For international acceptance, these requirements stand. As per the business model, the onboarding team would guide you on the requirements of the additional documents.
7. Regarding Website or Application
There are essential changes to be made to the website or the application to be used for the payment gateway merchant account services. This is important so that the customers have a clear idea of different policies such as terms and conditions, refunds, and privacy. Also, there should be clear reachable contact information on the website/app for customer support. The About Us page needs to have clear business information and idea about the services that you provide for which you are using the PayKun account.
8. Multiple Gateways
Depending upon your volume and traffic, you might consider having more than one integrated gateways. It can be beneficial in certain ways such as overcoming the downtime in one gateway or fill the gap of the payment method not supported by one but is supported by another.
9. PCI Compliance
If you are considering accepting the Card Payments, you may also consider following different security standards. PCI DSS is the highest level of security compliance where you would like to accept card payments.
Know more about What is PCI DSS Compliance?
This is not taken seriously by various small and medium-sized business but it is important for the success and growth of your business. The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. It protects the cardholder data from any kind of sensitive information data leaking and online payment frauds.
It is important that you protect the credit card information online, shred papers with personal information, protect the transaction history, and protect account numbers, etc.
10. Online Registration
So after you have gathered all the information, documents, and other requirements, you may simply sign up, and after trying the test mode, register with all the details and documents online.
These details and documents will be further verified by our onboarding team. If the verification is successful, your account will be activated and you can move forward with the integration process or start using the payment links or master links.
Consider registering with a payment gateway that is secured, easy, and reliable. Preparing for the necessary requirements beforehand would make it a swift process of activation of your merchant account. It is advisable to contact the Support team to know and study them to get through it with ease.