How to Add Payment Gateway to Website


How to Add Payment Gateway to Website

E-commerce is fast growing in India as more and more people get used to the ease of shopping online. Inspite of the development of cash on delivery model, payment for purchase through credit card or debt card or net banking is a preferred payment option for most customers. Therefore, it is important for all e-commerce websites to have a good payment gateway service provider. In this article, we look at the process for adding payment gateway to website.

Documents Required to Add Payment Gateway to Website

Prior to applying to add payment gateway to website, the ecommerce website owner must first incorporate a business entity. Since ecommerce businesses often take on equity partners, it is recommended that ecommerce ventures be setup as private limited company. If the revenue generated by the ecommerce website is less than Rs.40 lakhs and the promoters have no plans for raising equity funds, then the ecommerce business can even besetup as a Limited Liability Partnership (LLP). It is recommended that those starting a ecommerce website start the businesses as a LLP or Private Limited Company due to the limited liability protection afforded for the promoters and transferability.
Once a LLP or Private Limited Company is incorporated, the following documents for the company would be available with the promoters:

  • Certificate of Incorporation
  • Memorandum of Association & Articles of Association
  • Partnership Deed, in case of LLP
  • PAN Card for the Company or LLP

Using the above documents, the business would be able to open a business bank account in the name of the business entity. Once, the bank account is opened, the promoters can apply to a payment gateway service provider for payment gateway services.

Selecting the right Payment Gateway Provider

Once the business has a bank account and the proper documents are ready, the Company or LLP can apply to a payment gateway service provider for service. It is important to keep in mind the upfront fee, transaction charges and features offered by the payment gateway service provider while selecting the right provider. Some of the popular payment gateway service providers in India are:

  • CCAvenue
  • PayU
  • EBS from Ingenico
  • DirecPay

Application in the format required along with the necessary supporting documents can be submitted to any of the above payment gateway service providers to obtain payment gateway service for the website. The process time for obtaining payment gateway service on average takes about 1 week.

Preparing Legal Documents and Listings

Once the application for payment gateway is approved by the payment gateway service provider, a test payment gateway ID would be provided to integrate the payment gateway into the website. During this process, the Website Terms and Conditions and Privacy Policy must also be drafted for the website professionally and updated on the website. Website Terms and Conditions format and Website Privacy Policy format are available on Along with the legal documents, the websites ecommerce listing must also be made live with the appropriate pricing.
If the above steps are completed and the payment gateway works with the test ID, the payment gateway solution provider can be intimated to make the payment gateway live. At this moment, the website will become able to receive credit card / debit card / net banking payments through the website.
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