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PaymentNepal

Merchant Acquiring/Enrollment Process

Merchant Acquiring/Enrollment Process

The major operations under this service contain accepting applications from merchants, assessing of documentation provided, and setting up profiles.

Merchant Acquiring

Prospective Merchant should be justified through KYC and Due Diligence during Merchant Onboarding.

Eligibility Criteria for Merchant:

  • Firm/Company must be registered with the authorized entity of the Government of Nepal or in a Local Body.
  • Firm/Company must be in service
  • VAT/PAN
  • Firm/ Company / Owner/ Shareholders/ should not be listed in any Sanction / Negative List
  • Non-Blacklist document should be provided by Merchant to Payment Nepal.
  • Tax Clearance Certificate
  • Turnover of Firm/ Company
  • Shareholder details

Firm/ Company authorization person details of:

  • Business Team
  • Operation  Team
  • General Manager
  • CEO

However, necessary deviation approval shall be obtained if required from the CEO through the recommendation of Merchant Management Team.

Merchant Application

If any Merchant is interested in payment Gateway, they should register online and submit the Merchant Establishment Application form to PaymentNepal. Merchant Management Team will perform the following activities:

Business team Responsibilities:

Obtain duly filled up Merchant Establishment Application Form online along with the other necessary documents. Merchant management Team shall be responsible for maintaining an individual file of each Merchant which should consist of:

  • Valid Registration Certificate issued by the competent authority.
  • PAN/VAT Certificate.
  • Photographs of promoters/ BOD.
  • Citizenship certificates of Promoters and Board members.
  • Documents proving the creditworthiness of Merchants.

Merchant Management Team shall visit the site of operations of the applicant for the following:

  • The office/outlet(s) must be virtually or physically existed.(whenever necessary)
  • Whether the platform is consistent with the type of stated business on the application of merchant.
  • Whether or not involved in dealing of illegal goods and services.
  • Upon proper evaluation of the Merchant from business perspective, it shall be forwarded to the Operation Team.

Operation Team responsibilities:

Inspection of website standard. Technical specification of Merchant shall be as follows:

  • The website or application should be capable of accepting electronic payment.
  • SSL certificate (Secure Sockets Layer Certificate) is required for the merchant website.
  • Operation team shall also analyze the risk associated with the Merchant and properly attest the documents submitted by Merchant.
  • Due Analysis of merchant’s business done by Merchant Management Team shall be done. If satisfactory, Merchant Management Team forwards it for approval to approving authority after proper review and evaluation.

Merchant Negative List

Merchant Management Team ensure the processed merchant shall not fall under the Merchant Negative list which consists of:

  • Any merchant and its associates (owner/ shareholder/ beneficial owner, etc.)  which falls under the different sanction lists as per the Payment Nepal laid down screening guidelines.
  • Illegally established organization
  • Merchant from industries that are not allowed by the laws and regulations including but not limited to gambling and lottery, pornographic services, contraband drug sales, drugs, pornographic publications and firearms or ammunition.
  • Merchants that have been listed in black list of international card organizations.
  • Whether or not included in fraud list

On receipt of evaluation from Business Team and Operation team, the documentation will be forwarded to General Manager. On approval from the General Manager the application will be forwarded to CEO. After this PaymentNepal would sign an agreement along with self-declaration with merchant for implementation of Payment Gateway in their websites.

 

Fig: Approval chain for Card Not Present-Payment Gateway

The approval chain for CNP-PG will have 2-3 people in the Business team and Operation team, respectively to analyse the submitted documentation/business estimates of Merchant for final approval.

After final approval and agreement signing, the on boarding process will be initiated by the Operation team.

Process for Setting Up Merchant

  • Creating merchant profile as per the documentation received from merchant. Same should be checked by different Department and Approved by CEO.
  • Generating merchant number, by validating MSF (Merchant Service Fee).
  • Provide merchant id and Secret Keys to merchant.
  • PaymentNepal should set backend-url and front-end url of merchant site in Payment Gateway server.
  • PaymentNepal Merchant Management team esp. Business team should provide the hard copy of documentation provided by Merchant along with signed agreement, self-eligibility form file it for future usage.

Condition if change in ownership of the merchant:

In case of change in ownership of the merchant following should be done:

  • New Merchant Agreement should be done with the new owner of merchant.
  • Amended registration documents should be obtained.
  • Update the KYC.
  • Obtain the other relevant documents and update if any.

Termination of Merchant

Merchantship is to be cancelled or terminated in any of the following condition:

  • Merchant ceases to operate.
  • Merchant is inactive for 180 days.
  • Merchant requests for cancellation of merchantship.
  • Merchant is involved in fraudulent transactions.
  • Due to listing in negative/hotlist.

Cancellation notice of merchant ship must be communicated to concerned merchant. However, Payment Nepal reserves the right to terminate contract with merchant.``

Provision regarding monitoring of Merchants

  • Monitoring of daily Transaction by Operational Department
  • In case of suspicious transactions/ unusual transactions investigation of merchant shall be done by PaymentNepal.