A "merchant account" for international payments means getting set up to legally accept foreign currency from international clients through an RBI-authorized payment platform. The process in 2026 is significantly simpler than even two years ago — India-native platforms like Playto Pay complete standard onboarding in 24-72 hours. This guide covers the end-to-end process.
What You Actually Need
The term "merchant account" historically referred to a direct account with a bank's acquiring division — a process that could take weeks and required significant business history. In 2026, "merchant account" for most Indian businesses practically means: completing KYB onboarding with a payment aggregator (PA) or payment aggregator with cross-border authorization (PA-CB).
For Indian businesses accepting international payments, this means completing KYB with a PA-CB licensed platform like Playto Pay, Razorpay International, or Cashfree International.
Documents Required
Standard Indian KYB for international payment acceptance:
For Individual/Sole Proprietor:
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PAN card (mandatory)
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Aadhaar card
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Bank account details (cancelled cheque or bank statement with account number and IFSC)
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Address proof (utility bill, rent agreement, or Aadhaar if address matches)
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Business registration if applicable (GST certificate, trade license, MSME registration) For Private Limited Company / LLP:
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Company PAN card
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Certificate of Incorporation
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Memorandum and Articles of Association
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Board resolution authorizing merchant account opening
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Directors' KYC (PAN + Aadhaar for each director above threshold)
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GST registration certificate
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Bank account details with cancelled cheque (company bank account)
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Business address proof For All Business Types:
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GST registration certificate (if registered; required if above ₹20 lakh threshold)
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Business bank account (current account preferred for business; savings acceptable for individuals)
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Business website or social media presence describing the service
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Business description: what services/products you sell and to which countries
The Onboarding Process: Step by Step
Step 1: Choose Your Payment Platform
For international payments from India, your primary options:
- Playto Pay: International cards (4% flat) + VBA wires (1% flat) + UPI (0%) + FIRA auto + daily INR direct. Best for mixed card + wire + domestic Indian customers.
- Skydo: VBA wires only. Flat-fee ($19-$29 or 0.3% above $10K). Best for large wire-only workflows.
- Razorpay International / Cashfree International: Cross-border module on top of domestic PG. Best if already in their ecosystem.
Step 2: Submit Application
Most platforms have an online application:
- Business details (name, type, address, GST number)
- Founder/director KYC
- Bank account details
- Business description
- Expected monthly volume and transaction sizes
- Upload KYB documents Playto Pay: Apply at playto.so. Online form + document upload.
Step 3: KYB Review
Platform's compliance team reviews your application:
- Identity verification (PAN, Aadhaar)
- Business legitimacy check (website, GST, registration)
- Risk assessment (business category, expected volumes) Timeline: Standard Indian KYB takes 24-72 hours for straightforward cases. More complex business structures or high-risk categories may take 3-7 days.
Step 4: Bank Account Linking and Verification
- Link your Indian business bank account
- Platform may make a test penny deposit for verification
- Confirm bank details match KYB documents exactly
Step 5: Configuration
- Set up payment methods (enable cards, VBA, UPI, BNPL as needed)
- Configure payment descriptor (business name on customer card statements)
- Set up FIRA auto-generation (Playto Pay: automatic)
- Test with a small transaction
Step 6: Go Live
- Start sending payment links or VBA bank details to clients
- Monitor first few transactions through dashboard
- Download FIRA for first international transaction to confirm format
Why Applications Get Rejected
Understanding rejection reasons helps you apply correctly the first time:
1. Document mismatch. Name on PAN card doesn't match name on bank account. Or company name on GST doesn't match Certificate of Incorporation. Ensure all documents are consistent.
2. No online business presence. Most PA-CB platforms want to see that you have a legitimate operating business. A basic website, LinkedIn, or Instagram page describing your services is usually sufficient.
3. High-risk business category without supporting documentation. Certain categories (financial advice, crypto, adult content, gambling) require additional documentation or are simply declined.
4. Irregular bank account. Savings account with personal deposits mixed in, very new account (under 3 months), or account with unusual transaction patterns.
5. Missing GST when it should be present. If your business appears to be above the threshold, being unregistered for GST raises questions.
6. Incomplete application. Partial document submissions. Upload all required documents in one complete submission.
Onboarding Timeline by Platform
| Platform | Typical Onboarding | What Affects Speed |
|---|---|---|
| Playto Pay | 24-72 hours | Document completeness, business category |
| Skydo | 24-72 hours | Document completeness |
| Razorpay International | 3-7 days | Business type, volume tier |
| Cashfree International | 2-5 days | Business category, volumes |
| Stripe (via US LLC) | Weeks to months | US LLC incorporation timeline |
After Onboarding: First Checklist
- Test transaction completed and INR settled to bank
- FIRA auto-generation confirmed for international transactions
- Bank account settlement confirmed matching
- Payment descriptor set correctly (your business name)
- VBA account details noted (for wire-paying clients)
- Payment link generated (for card-paying clients)
- Invoice templates updated with new payment details
FAQ
How long does it take to get a merchant account for international payments in India? Playto Pay and Skydo: 24-72 hours for standard Indian KYB. Razorpay/Cashfree: 3-7 days. Stripe (via offshore US LLC): weeks to months.
Do I need a current account or savings account for a merchant account? A current account is preferred and looks more professional. Savings accounts are accepted for individual/sole proprietor onboarding on most platforms, but a current account signals a more established business.
Do I need GST registration to get a merchant account for international payments? Not strictly required if below the threshold. But most PA-CB platforms prefer GST registration. If you expect regular international revenue, register for GST before applying to avoid reapplication later.
Can a sole proprietor get a merchant account for international payments in India? Yes. Sole proprietors onboard successfully with PAN + Aadhaar + bank account + basic business documentation.
What if my application is rejected? Contact the platform's support for specific rejection reason. Common fixes: provide a business website, register GST, ensure document name consistency, provide additional business proof.
Is there a minimum revenue requirement? Most Indian PA-CB platforms don't impose strict minimums. Playto Pay onboards businesses of all sizes.