How much does a payment gateway cost in India?

When you add online payments to your website, the main cost is not the setup but the payment gateway charges on every sale. These fees come out of each transaction before the money reaches your bank account. Understanding them helps you price products correctly and compare providers fairly.

Here is how gateway pricing works in India and what to check before you sign up. Fees change, so always confirm on the provider’s own pricing page.

How payment gateway charges work

• Transaction fee. A percentage of each successful payment, sometimes called the platform fee or MDR.
• GST on the fee. 18% GST is charged on the gateway’s fee, not on your full sale amount.
• Setup and annual fees. Standard plans from major gateways usually have none, but premium plans may.
• International payments. Cards issued abroad usually cost more.
• Settlement timing. Faster settlement can carry an extra fee.

Published payment gateway charges (October 2026)

Source: Razorpay pricing and Cashfree pricing, checked in October 2026. Fees can differ by payment method and business type, and gateways may offer custom rates for higher volumes.

A simple example

On a ₹1,000 sale with a 2% fee, the gateway keeps ₹20 plus 18% GST on that ₹20, which is ₹3.60. You receive ₹976.40. If you sell 500 orders a month at that value, total payment gateway charges are roughly ₹11,800. Small differences in percentage add up at volume, so compare carefully once your sales grow.

Website setup costs

The gateway account itself is usually free to open, but connecting it to your site takes some work: installing the plugin or app, adding keys, testing payments and setting up webhooks. On WooCommerce this is often part of the store build. On Shopify, gateways are added through settings or apps. Our WooCommerce development includes gateway setup.

How to compare payment gateway charges

1. Compare the fee for the payment methods your customers actually use.
2. Check fees for international cards if you sell abroad.
3. Ask about settlement time and any fee for faster payouts.
4. Check refund handling and dispute fees.
5. Ask for a custom rate once your monthly volume is significant.

Example: choosing a gateway for a growing store

A home decor store started with one gateway because setup was quick. A year later, with steady monthly sales, the owner compared payment gateway charges across two providers, asked both for volume-based rates and switched the primary gateway to the lower offer, keeping the first as a backup. The saving covered the store’s hosting for the year. Revisiting payment gateway charges once a year is a simple habit that pays off.

Other costs linked to payments

Payment gateway charges are not the only payment-related cost. Refunds may not return the original fee, chargebacks can carry a separate charge, and some plugins or apps that connect the gateway have their own subscription. On Shopify, using a third-party gateway may also add a platform transaction fee depending on your plan. Add these to your budget so your margins are accurate from the start.