All You Need To Know About CSP Registration

A CSP Registration, also known as an MDR Registration or Model Billing Registration, allows you to collect money from your customers on behalf of your merchant partners. You can do this in person, over the phone, through the mail, or even online. There are two ways to register with your state’s CSP program: you can pay a one-time registration fee and file once online, or you can submit multiple registration forms along with corresponding fees at local agencies in your state.

What is a 'CSP'?

For many consumers, credit and debit cards are just a normal part of life. However, a ‘Cash Card’ (CSP) is not – it is a new type of card that enables consumers to pay for purchases from their account using cash. According to Reserve Bank of India regulations, if your aggregate turnover in any financial year exceeds Rs. 20 lakhs in cash receipts or payment transactions, then you must register as a CSP with your local District Central Cooperative Bank or you can opt for CSP registration online.

Why CSP Registration?

The Reserve Bank of India has made it mandatory for all existing card issuers and acquirers to get their cards Registered at Payment Card Industry Data Security Standard (PCI DSS) level-1 compliance by March 31, 2015. This will ensure greater security for users of financial services and prevent possible frauds. The deadline was initially set as December 31, 2014 but was later extended to avoid any confusion in getting registered. Despite having received a formal notice from RBI in October 2013, many entities have not got themselves registered or have been slow in adhering to norms imposed by RBI. Thus, it is important that financial service providers make sure they have completed all necessary processes before April 30 so that they do not face any hurdles on implementation of new regulations. Also called Certificate Service Provider (CSP), CSP registration basically ensures high levels of protection for consumer data and provides consumers with increased confidence in online transactions. For online transactions to be carried out securely between buyers and sellers, both must undertake PCI-DSS Level 1 compliance by submitting such details as full name, address etc.

Who can apply for CSP Registration?

To be eligible for registration, an applicant must:

• Be a citizen of India;

• Be at least 21 years of age as on April 1, 2015;

• Possess a valid PAN Card;

• Have a bank account which has been in operation for a period of not less than three months with any scheduled commercial bank or co-operative bank or any financial institution which is authorized under section 6(2) of FEMA or with any other depository institution having RBI licence;

• Have net annual income from all sources during preceding financial year (ending March 31) of more than Rs. 12 lakhs;

• Not own directly or indirectly equity shares/units in excess of 10% of total number of equity shares/units in any one entity engaged in activities liable to be registered under GST.

With effect from April 01, 2017 and earlier till March 31, 2017 Individuals/HUFs are required to submit Aadhar based eKYC for application for registration under GST regime by providing their details as per Aadhar Card. If you are wondering about CSP registration fee, you can check with Pay Point India.

The author of this article is an experienced CSP provider. In this article, he has mentioned a few things you need to know about CSP Registration. Visit https://www.paypointindia.org.in/.

Article source: https://article-realm.com/article/Finance/19700-All-You-Need-To-Know-About-CSP-Registration.html