International Payment Gateway in India: Comprehensive Guide.
Many Indian E-Commerce websites sell their products and services to International customers. To make the transaction possible these Indian businesses required International payment gateways. The team at Quadrupay has written this extensive guide about international payment gateway in India. We are confident that after reading this guide you will be able to understand various factors related to International transaction processing for E-Commerce business in India. We will talk about the features of international payment gateway we will also discuss high risk merchant account for Indian companies along with that we also going to talk about the features and benefits of USD payment gateways in India. Apart from these we are also going to discuss about alternative payment option such as EA check ECH Interact and Wire transfer solutions. Let’s begin.
An international payment gateway is a Credit Card processing solution that allows Indian businesses to accept payments from International customers in global currencies such as USD, Euro, JPY, and British Pound, etc. The international payment gateway also allows Indian businesses to accept one-time and recurring payments.
Types of International Payment Gateway In India
There are two types of international payment gateway solutions being used by Indian merchants.
International Payment Gateways In India Powered by Domestic Acquirers
This kind of payment gateway is provided by a local Indian payment processor that registers the Indian merchant company. Such payment solutions are highly affordable and excellent when it comes to quick settlement of the funds. With these payment gateways, merchants can also accept domestic credit and debit card transactions. Sometimes merchants may face high decline ratio if the majority of transactions are from International countries.
International Payment Gateways In India Powered by Offshore Acquirers
The other type of payment gateways that can be used by Indian companies are powered by Offshore acquiring companies. It is important for merchants to understand that payment processors can only provide merchant accounts to businesses registered in the processors’ region of operation. That is why if any Indian business wants to establish an international payment gateway powered by an offshore requirement company then it must first register a company in that jurisdiction. It’s like opening a subsidiary business unit in a different location. For some merchants this can be a difficult task; however, the benefits are enormous. With this kind of international payment gateway, companies of Indian founders can easily accept Global transactions without worrying about high decline ratio. Offshore payment processors also offer a wide range of processing currency would scan allow the company to accept transactions from UK, European Union, Canada, US, and even Latin America.
Basically, which solution works best for you can be decided after a small consultation. Making the right selection is important and it requires a consultative approach. Feel free to email us on [email protected] and ask us about our suggestions for your business time and what type of Merchant account you should choose for your Indian company to accept International payment.
Features Of International Payment Gateway Solution In India.
There are a variety of features of international payment gateways that can be very beneficial for Indian companies. A truly International payment solution will offer a very high success ratio and this can be achieved by working with the payment processor in the region of majority transaction traffic and that is why we strongly recommend Indian merchants to register the business entity in the jurisdiction of the payment processor.
Many payment service provider partners offer merchants the ability to accept different currencies. This feature can be extremely powerful for Indian companies as they can start selling their products and services to customers across different continents without worrying about currency conversion. The dynamic currency conversion facility swiftly converts the price to the customer’s home currency.
Many Indian companies require invoice payment facility that means they want to add a link on their invoice where the customer clicks and makes the payment. This is absolutely possible with our partner providers. Once the customer clicks on the pay now button on the invoice, it is routed to a hosted payment page where the customer securely submits the credit card information.
There are various service-based companies in India that want to expand to the Global market. These companies require one-time and recurring payment facility. Our solutions are able to support subscription requirements of Indian merchants.
There are a variety of alternative payment methods used by customers across the world. It is important for Indian merchants to be aware of these options as in many countries customers prefer to make payment using local APMs rather than credit or debit card. Our solutions allow businesses to accept a variety of alternative payment methods.
Application Process Of International Merchant Account In India.
Application process to get an international payment gateway in India starts by sending a basic enquiry to us. Our team will contact you and ask you a few questions which will help us to understand if our solution can actually support your business model or not. If we are satisfied that yes we may have the product for you, then we will ask you for the questions and will also ask you for documents that the payment processors need. In due course of time, we will introduce you to a payment service provider partner and they will start the underwriting process.
Keep in mind that they will require business documents as well as banking information, personal ID documents, previous processing history, and domain registration proof. In general, International payment processors prefer to work with merchants who do at least a volume of $10,000 each month. Anything less than that, we strongly recommend you to use solutions like Stripe or PayPal as they are very good options for low volume transactions.
Website Requirements For International Payment Gateway In India.
To improve the chances of your account approval, it is important for you to clearly understand the website compliance. The payment processing company will first evaluate your website and then look at your documents. If they are not convinced about the strength of your website, they will straight ahead decline your application and will not allow you to apply for the next 6 months.
Our payment processing partners primarily look at working with professional businesses which are ethical and growth-oriented. Your website should be complete and should represent your actual business model. Unfortunately, we do not have many solutions for startup websites or those that have hardly any traffic. Our payment processing partners would require your website to have a substantial amount of traffic so that they can start working on the underwriting process.
All the services that you sell should be clearly defined on your website including putting the specification element, images, and other references. The website should also have refund policy, shipping policy, and any other terms and condition pages that your business may require. Your website should also have the contact information of the company that includes the phone number, email, and the registered business address.
KYC Requirements For International Credit Card Processing Account In India.
To get the approval of the account, you will need to submit a filled application form with KYC documents. Let us discuss the KYC documents in detail here.
Depending upon the jurisdiction of your registration, the payment processor will ask you for a relevant business registration certificate. For example, if your company is registered in India, they will ask for the certificate of incorporation. However, if it is registered in the UK, then it will ask for a similar document that you get from the Company House UK. If you have an LLC, then they will ask for the LLC document.
It is important for payment processors to confirm the identity of the people behind the business and that is why they will ask for a photo ID proof. This can include a passport or a driver’s license.
You will also need to produce your business bank statement as well as personal bank statement. If you don’t have a personal bank statement, then you can provide a utility bill for yourself. They will also need some kind of address proof for the business address.
Rates Of International Payment Gateway In India.
The rates and fees that you pay for international payment gateway services for your Indian company depends on various factors. The most primary factor that affects the pricing is where the payment processor is registered.
If you are using the services of an offshore payment processing company, then be ready to pay slightly higher fees. However, if your payment processor is registered in India, then you can definitely get better rates. You can negotiate the pricing with the payment processor directly.
There are a variety of pricing structures available to the Indian market. This includes a fixed price model where you pay a specific percentage on each transaction irrespective of the card type. Another model is the interchange plus pricing model where you pay a markup on the interchange pricing. Keep in mind that the card brand decides the interchange pricing on each card type. Consumer cards are inexpensive whereas business cards are expensive. Another pricing model is the tiered pricing approach in which the processor reduces the pricing once you reach a bigger monthly sales volume as agreed on the agreement.
FAQ International Merchant Account In India.
Why Indian Merchants May Need An International Payment Gateway?
There are two reasons why an Indian company would need an international payment gateway. The first one is the most common where the company wants to expand to an international market and wants a smooth transaction processing solution. The another reason is that the merchant is frustrated by the services of existing payment solution providers.
Why Currencies Does International Payment Gateways Support for Indian Merchants?
International payment gateways support global transactions that means you will be able to accept payments for the sale of your products and services in multiple currencies. Some of the most common currencies that are supported by all popular International payment processors include US Dollar, Euro, British Pound, Australian Dollar, and Canadian Dollar.
Does International Payment Gateway Offers Onboarding to High-Risk Merchants?
As per the payment industry, our ID of Merchant classification codes are considered high risk. These businesses require specialized merchant accounts we call high-risk merchant accounts. Businesses operating in certain industries such as healthcare, online dating, Forex, gaming, IT services are all categorized as high risk. We can say that our payment processing partners do offer services to merchants from such categories on a case-by-case basis. However, keep in mind that the onboarding for such accounts is complex and requires deeper vetting.
Can I Use eCheck Payment Gateway for Indian Companies?
You can definitely use an eCheck payment gateway for your Indian company. However, before that, it is important for you to understand what is the nature and how you can deposit one in your business bank account in India. An eCheck is the electronic form of a USD check. In the United States, there is a law which allows the conversion of regular checks into digital form and the digital form of check has got the same value as the regular paper check.
If you bank in India accepts International USD checks, then you may certainly deposit these electronic checks into the Indian business bank account. However, it is important to know that the clearing of such checks may take a long time and sometimes may not clear because of other complexities such as delay between communication between the banks. Even if the checks clear, then the Indian Bank may hold your money for 25 to 40 days.
An easier option will be to register an LLC in the United States and set up a business bank account there and then start using an eCheck payment gateway.
Final Words Regarding International Transaction Acceptance In India.
We are thrilled that you have reached the end of the article. That means you now have enough information about starting a journey when it comes to getting approved for an international payment gateway in India. Our team wishes you grand success. If you have any further questions regarding International merchant account, payment gateways, or USD payment solution in India, send us an email on [email protected].
Feel free to check our country-specific pages on our website that will give you a deeper understanding of how payment processing works in such countries. For example, we have this page for UK payment processing and this one for USA payment processing. We are looking forward to answering your questions.
