What is a merchant account in India?
A merchant account is a payment tool used by investors who want to open a company in India that allows electronic payments, concluded through local/international debit and credit cards. In order to set up a merchant account, a business relation has to be established between the retailer and a banking institution, as well as a payment processor.
This type of account can be employed by any type of company selling products or services (payments concluded through POS devices) and it is a compulsory requirement for online businesses. Our team of specialists in company registration in India can assist foreign investors in choosing a suitable merchant account for their business.
What are the advantages of the merchant account in India?
By setting up a merchant account, the company will have the opportunity of increasing its daily financial transactions, which will not be limited only to cash payments. More importantly, the merchant account allows a wide range of transactions, which can be completed by using the mobile phone, e-mail or SMS. It can also be employed for social media platforms and various mobile applications can also generate QR codes for a quick and simple transaction. Some of the most important advantages are given by the following:
- it provides complete payment solutions, that can be employed through a wide range of channels, as mentioned above;
- it increases the success of any electronic payment and it can give the opportunity to retry a failed transaction;
- it has a high level of security against fraud attempts and it incorporates a risk identification system;
- the transaction page can be adapted to any type of device, by providing a responsive transaction page layout.
Does India provide any incentives for merchant accounts?
The Indian authorities have decided to encourage the usage of merchant accounts and thus, starting with 1st of January 2018, it provides a subsidy in this sense, available for a period of two years. Our team of specialists in company registration in India can offer more details concerning this regulation, but it is important to know that the government will bear the charge that is usually paid by merchants to local banks for any purchase with a value of maximum RS 2,000.
Businessmen are invited to contact our team of consultants, who can advise on how to form a company in India operating a merchant account. Our representatives can offer in-depth assistance on the taxes that are to be paid in this case and can offer information on the main documents that have to be submitted with the entities involved in the operation of a merchant account.