Quick answer
Most Indian payment gateways charge about 2% + 18% GST per payment (2.36% in total), with no setup fee. Paytm and PhonePe list 1.99%, Razorpay and Cashfree 2%, and Instamojo 2% + ₹3. The real differences are in offers, international card rates, settlement speed and extra fees, not the headline rate.
Payment gateway charges compared
| Gateway | UPI | Cards & net banking | International | Setup / yearly | Settlement |
|---|---|---|---|---|---|
| Razorpay Standard | 2% | 2% | Not published | ₹0 / ₹0 | T+1 |
| Cashfree Payments Standard | 2% | 2% | 2.99% | ₹0 / ₹0 | T+1 |
| Paytm Payment Gateway Standard | 1.99% | 1.99% | Not published | ₹0 / ₹0 | Not published |
| PhonePe Payment Gateway Standard | 1.99% | 1.99% | Not published | ₹0 / ₹0 | Not published |
| Instamojo Payment Links / Growth | 2% + ₹3 | 2% + ₹3 | Not published | ₹0 / ₹0 (paid plans from ₹4,999/yr) | T+3 |
| CCAvenue Startup Pro | Not published | 2% | 4.99% | ₹0 / ₹1,200 from year 2 | Not published |
| Stripe India Standard (invite-only) | Not published | 2% | 3% | ₹0 / ₹0 | Rolling |
| PayU Standard | Not published | Not published | Not published | Not published / Not published | Not published |
Fees exclude 18% GST. “Not published” means the provider's public pricing page doesn't show it; ask their sales team.
Current offers
- Razorpay: 0% platform fee for the first 90 days for new merchants.
- Cashfree Payments: 1.95% festive rate; new merchants get 0% on the first ₹20 lakh until 31 Mar 2027.
- PhonePe Payment Gateway: Currently shown as “Free*” (T&C apply; scope and end date not published).
Offers end, and most exclude GST, American Express, corporate and international cards. Compare on the standard rate you'll pay afterwards.
Razorpay charges explained
Razorpay's Standard plan charges 2% + GST on domestic cards, UPI, net banking and wallets. There's no setup fee and no annual maintenance charge, and new merchants pay 0% platform fees for the first 90 days.
- UPI on Razorpay: UPI has zero MDR today, but Razorpay's 2% platform fee still applies. On ₹1,000 you pay ₹20 + ₹3.60 GST.
- From 15 October: Razorpay says the new 0.4% UPI MDR on payments above ₹2,000 will appear as a separate line, on top of the platform fee.
- Settlement: T+1 on the pricing page (its help docs still mention T+2). Faster, on-demand settlement costs extra.
- Refunds: no fee for a refund, but the fee on the original payment isn't returned.
- Custom pricing: available from about ₹5 lakh a month in sales.
How the new UPI charge affects gateway fees
From 15 October 2026, merchant UPI payments above ₹2,000 carry a 0.4% MDR, capped at ₹300 (official FAQ). This is separate from a gateway's platform fee. So on an online payment of ₹5,000 by UPI through a 2% gateway, you could pay ₹100 platform fee + ₹20 MDR, plus GST on both.
Payments of ₹2,000 or less are unaffected. The small-merchant exemption covers UPI QR payments of up to ₹1 lakh a month received straight into your own account; ask your gateway how it will treat your account. See UPI charges above ₹2,000 for the full rules and UPI MDR latest news for the court hearing and GST decision.
Hidden costs to check before you sign up
- GST on every fee: 18% on top of the rate you're quoted.
- International and Amex cards: often 3% to 5% (CCAvenue lists 4.99% for international cards).
- Refunds: the original fee is usually kept.
- Chargebacks: Stripe charges ₹1,000 per dispute; most Indian gateways don't publish this.
- Fast settlement: instant or same-day payouts usually cost extra.
- Yearly fees: CCAvenue charges ₹1,200 a year from the second year.
- Per-payment fixed fees: Instamojo adds ₹3 to each payment, which matters for small tickets. On ₹200, ₹3 is another 1.5%.
Which gateway fits which business
| If you… | Look at |
|---|---|
| Sell mostly by UPI in person | A plain UPI QR code into your own account; no gateway fee. Add a soundbox if you need alerts. |
| Have a new website and want the lowest cost for the first months | Offers from Razorpay (90 days) and Cashfree (first ₹20 lakh) |
| Sell abroad | Compare published international rates: Cashfree 2.99%, Stripe 3%, CCAvenue 4.99% |
| Send payment links without a website | Razorpay, Cashfree or Instamojo payment links |
| Process more than ₹5 lakh a month | Ask two or three gateways for custom pricing and compare the quote above |
How to lower your payment gateway charges
- Negotiate: once you have steady volume, ask for custom pricing and use competitor quotes.
- Use offers, but plan for the standard rate.
- Take in-person payments by UPI QR rather than through a gateway or card machine.
- Claim input tax credit on the GST you pay on fees, if you're GST-registered.
- Check settlement needs: don't pay for instant payouts you don't need.
Frequently asked questions
Which payment gateway has the lowest fees in India?
On published standard plans, Paytm and PhonePe list 1.99% and Razorpay, Cashfree and CCAvenue list 2%, all plus 18% GST. Instamojo charges 2% + ₹3 per payment. Several have limited-time offers (Razorpay 0% for 90 days, Cashfree 0% on the first ₹20 lakh for new merchants), and larger businesses can negotiate lower custom rates.
What are Razorpay charges?
Razorpay's Standard plan charges 2% + GST per payment on domestic cards, UPI, net banking and wallets, with no setup fee or annual fee. New merchants get 0% platform fees for the first 90 days. International card rates are not published on its pricing page.
Is UPI free on Razorpay?
Not fully. UPI itself has zero MDR today, but Razorpay charges its 2% platform fee (plus GST) on UPI payments too. From 15 October 2026 the new 0.4% UPI MDR on payments above ₹2,000 is due to start, and Razorpay says it will show that as a separate line.
Is GST charged on payment gateway fees?
Yes. 18% GST is charged on the gateway fee, not on the payment amount. A 2% fee becomes 2.36% in total. GST-registered businesses can usually claim it back as input tax credit.
Will I be charged for UPI payments above ₹2,000?
From 15 October 2026, merchants pay a 0.4% MDR on UPI payments above ₹2,000, capped at ₹300. Customers are not charged. On a gateway this is in addition to the gateway's own platform fee, depending on how each gateway passes it on.
Is a 3% transaction fee a lot?
For domestic payments in India, yes: standard gateway plans cost about 2% + GST (2.36% in total). Around 3% is normal only for international cards (Cashfree 2.99%, Stripe 3%) or for American Express and corporate cards.
Is there a payment gateway with 0% fees?
Only as offers. Razorpay gives 0% platform fees for 90 days, Cashfree offers 0% on the first ₹20 lakh of sales for new merchants until 31 March 2027, and PhonePe shows its gateway as “Free*” with terms. GST and some payment methods are excluded. For in-person sales, a UPI QR code into your own bank account has no fee for small merchants.
Compare other ways to get paid
- Cheapest way to accept payments: UPI, cards, soundbox or gateway
- POS machine and card swipe charges
- Soundbox charges
Sources
- Razorpay pricing · UPI has zero MDR today, but Razorpay charges its 2% platform fee on UPI too. Its blog says the new 0.4% UPI MDR will be shown as a separate line on top.
- Cashfree Payments pricing · American Express 2.95%. UPI charged “as per applicable law”.
- Paytm Payment Gateway pricing · Published as a 1.99% platform fee; the split by payment method is not published.
- PhonePe Payment Gateway pricing
- Instamojo pricing · Free online-store plan charges 5% + ₹3.
- CCAvenue pricing · Cards and net banking 2%; Amex/Diners 4%. UPI rate not listed.
- Stripe India pricing · Cards only: no UPI, net banking or wallets. Indian debit cards 0.4% capped at ₹200.
- PayU pricing · Rates are not shown on the public pricing page.
- All checked 27 September 2026. For information only; confirm the rate in your agreement with the provider.