Payment Gateway and Collections

Overview

Online businesses collect card, UPI, net-banking and wallet payments through payment aggregators and gateways. Payment aggregators are regulated by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007, and must onboard merchants with KYC. Plan reconciliation from the start: every settlement should match orders, fees, taxes on fees, refunds and chargebacks.

Who this is for

E-commerce and subscription businesses
Service businesses that collect fees online

Step by step

Choose an authorised aggregatorCheck that the provider is authorised or permitted to operate by the RBI.
Complete merchant onboardingProvide entity KYC, bank account, website or app details and policies.
Publish required policiesTerms, privacy, refund and cancellation policies and contact details are normally required before going live.
Integrate and testUse the sandbox, verify webhooks and signature checks, and test refunds.
Reconcile settlementsMatch settlements to orders and record gateway fees and the GST charged on them.

Documents you will need

Entity KYC and PAN
Bank account proof
Website or app with policies
GSTIN if registered

The process

Activation follows the aggregator’s risk review. High-risk categories may have rolling reserves or longer settlement cycles.

Authorities involved

Reserve Bank of India: Authorises and regulates payment aggregators.

Common mistakes

Storing card data on your own servers instead of using tokenisation.
Not verifying webhook signatures.
Treating gross collections as revenue without deducting refunds and fees.

Checklist

Select an RBI-authorised payment aggregator
Publish terms, privacy, refund and contact pages
Integrate and test payments and refunds
Set up monthly settlement reconciliation

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Frequently asked questions

Can I accept payments into a personal account?

Aggregators settle to the merchant entity’s verified bank account. Business receipts should always go to the business account.

Official sources

RBI — master directions on KYC, payments and foreign exchange — Reserve Bank of India

GST Accounting & Monthly Compliance — from ₹1,651 (incl. GST) + Govt. Fees, if applicable