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How to Add Payment Gateway to Website


How to Add Payment Gateway to Website

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

Infographic-on-how-to-add-payment-gateway to-website
Infographic on how to add payment gateway to website

Documents Required to Add Payment Gateway to Website

Prior to applying to add payment gateway to the 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 set up as a 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 be set up as a Limited Liability Partnership (LLP). It is recommended that those starting an eCommerce website start the businesses as an LLP or Private Limited Company due to the limited liability protection afforded for the promoters and transferability.

After the incorporation of an LLP or Private Limited Company, the promoters would have the below following documents for the company:

Using the above documents, the business would be able to open a business bank account in the name of the business entity. Upon creating the bank account, the promoters can apply to a payment gateway service provider for payment gateway services. For more information about starting a private limited company or LLP, watch the following video:

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 processing 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, make the websites eCommerce listing 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.

For more information about getting a payment gateway for your website, talk to an IndiaFilings Business Advisor.