Rakesh Nair

Project Manager


Merchant account and payment gateway integration.

Payment gateway Integration
      In this blog I will be discussing steps involved in opening a merchant account to kick start your online business. What is merchant account? A merchant account is a special type of bank account that exists for the purpose of holding funds captured from credit cards/debit cards,before it is transferred to your business account. So now that you have decided to open a merchant account what's next step? You should now compare various merchant account providers available in market wrt set up cost, Transaction Discount Rate(TDR) ,annual maintenance charges etc. I will discuss some of the merchant account and service providers in India. They may be divided into two types.
  1. Banks: Some of the banks  have their own payment gateways . Banks like HDFC,ICICI and Axis provide this services. One main drawback of using them is that their initial set up fee is high as compared to third party providers. But however their TDR is less, so if you are expecting large volume of transaction then this might be the best option for you.
  2. Other providers: There are also numerous other providers that you could consider like EBS,ccavenue,pay u,pay zippy,Direct pay etc. Some of them charge a small fee while other provide the option of free set up and zero maintenance for the first year. The point to consider is that although they have a very low or no set up fee their TDR is higher. Given below are pricing for some of the providers:
Once you have finalized which gateway provider is best for you, contact them and their representative will get in touch with you. It typically takes 7-10 days to open your merchant account and get your integration kit(for both test and live environment). Generally you need to provide following documents to open merchant account:
  1. Certified current account statement.
  2. ID proof.
  3. Service tax/sales tax registration certificate.
  4. Certificate of incorporation(If you are pvt or ltd company)
  5. Address proof of business.
  6. Photo proof
  7. Your business model on letterhead.
All documents needs to be stamped and signed by the applicant. I hope my article was helpful. Please feel free to connect with me at rakesh@credosys.in|www.credosyssolutions.com|@rakeshnair2112