Short answer: do not compare payment gateway charges by the headline rate alone. Put every quote side by side and check the same lines on each: rate per payment method, setup or yearly fees, GST on the fee, refund and chargeback terms, when money reaches your bank, and whether the company is a bank or an RBI authorised payment aggregator.
Why the headline rate is not the full price
A gateway pricing page usually shows one big number. The real cost of a quote sits in the lines around it. On 26 Oct 2026, Razorpay’s pricing page showed an introductory offer and custom pricing for businesses above a monthly volume. Cashfree’s pricing page showed a festive offer for new merchants with its own terms, and a note that a platform fee is a fee other than the fee charged on the transaction. So two quotes with the same headline rate can cost your shop very different amounts.
If you are new to the basics, start with our guide to payment gateway charges in India. This post is the next step: how to read the quotes you get.
The checklist: ask every gateway the same questions
Copy these lines into a notebook or sheet. Write each gateway’s answer in its own column.
1. Rate for each payment method
- What is the rate on UPI, on debit cards, on credit cards, on net banking and on wallets?
- Is any rate shown as an offer? Till which date, and what is the rate after it?
- Does the rate change for RuPay credit cards on UPI or for international cards?
For UPI fees on QR and links after Diwali, read UPI MDR charges after Diwali 2026 and the Hinglish guide UPI MDR kya hai.
2. Fixed fees outside the rate
- Is there a setup fee, an annual maintenance charge or a platform fee?
- Which tools come with the gateway at no extra fee, such as payment links or payment pages, and which are paid add ons?
3. GST on the fee
Ask whether the quoted rate already includes GST or whether GST is added on top of the fee. Write the answer down, because it changes the number you compare.
Example numbers, only to show the arithmetic: on a Rs 10,000 payment, a 2% fee is Rs 200. If GST at 18% is added on that fee, the GST is Rs 36, so the total cost is Rs 236. Use your own quoted rate in place of these.
4. Refunds, failed payments and chargebacks
RBI’s guidelines for payment aggregators (circular of 17 Mar 2020) say the agreement with the merchant should set out roles for complaints, refunds and failed transactions, return policy, grievance handling and dispute resolution. So ask:
- Is there a fee when you refund an order?
- What happens to the fee on a refunded or failed payment?
- How is a chargeback handled, and is there a charge for it?
- Who is the nodal officer for complaints? The same RBI guidelines say a payment aggregator has to show its nodal officer’s details on its website.
5. When the money reaches your bank
The RBI guidelines also set outer time limits for when a payment aggregator passes money to the merchant, and they link these to dates such as delivery or the end of the refund period in your agreement. Ask the gateway what its normal settlement time is for your account, and whether faster settlement costs extra. Get the answer in writing.
6. Who the company is
Under the same RBI circular, banks can offer this service as part of normal banking, while non bank payment aggregators need authorisation from RBI under the Payment and Settlement Systems Act, 2007. The circular treats payment gateways as technology providers to banks or non banks. Ask which one you are signing with. RBI publishes a list of Certificates of Authorisation under the Payment and Settlement Systems Act, 2007, which has a section for payment aggregators. Check the company’s name there.
7. Cash on delivery is separate
The RBI payment aggregator guidelines do not apply to the cash on delivery model. If you take COD, its costs come from your courier, not the gateway. Our post on COD vs prepaid for a small shop covers that side.
A simple sheet to compare quotes
Make one row per question above and one column per gateway. You can copy this blank table and fill it in:
| Item | Gateway A | Gateway B | Gateway C |
|---|---|---|---|
| Rate per transaction | |||
| GST on fee | |||
| Setup fee | |||
| Annual or maintenance fee | |||
| Settlement time | |||
| Refund and chargeback fee | |||
| UPI, card and COD handling | |||
| Minimum monthly charge |
Then, using your own last month of orders, write down how many came by UPI, by card and by COD. Multiply each method’s count by that gateway’s quoted rate and add the fixed fees. The quote with the lower total for your real order mix is the one to look at closely, not the one with the lower headline rate.
When a separate gateway is not needed
A gateway is one way to take online payments. Some store builders include payment processing in their own fee. Our Instamojo alternative in India post and commission vs monthly fee compare these models. Indi Andaz is one option: No monthly fee, 5% only on delivered online orders, payment processing included. GST applies on the fee. Indi Andaz seller website.
FAQ
What are payment gateway charges in India?
They are the fees a gateway takes for processing an online payment. A quote can include a rate per payment method, fixed fees such as setup or annual charges, GST on the fee and refund or chargeback terms. Compare all of them, not only the headline rate.
Are UPI gateway charges the same as card charges?
Not always. Gateways list rates per payment method, so check the UPI line and the card lines separately on each quote. For UPI MDR news, see UPI MDR charges after Diwali 2026.
How do I check if a payment gateway is allowed by RBI?
Ask whether the company is a bank or a non bank payment aggregator. RBI’s 2020 guidelines say non bank payment aggregators need RBI authorisation. Ask the gateway for its authorisation details and check its name in RBI’s list of Certificates of Authorisation, which has a section for payment aggregators.
Will I be charged for UPI payments above Rs 2,000?
NPCI says a fee of 0.4% on UPI payments to merchants above Rs 2,000, with the charge capped at Rs 300 per transaction (the cap applies at Rs 75,000 and above), starts after Diwali, on a date NPCI notifies. Small merchants who take UPI QR payments to their own account, up to Rs 1 lakh a month, pay zero. Your gateway quote should show the UPI line separately. See UPI MDR charges after Diwali 2026.
Is GST charged on payment gateway fees?
Ask each gateway whether its quoted rate includes GST or adds it on the fee, and note it in your sheet. Your CA can advise on how it shows in your accounts.
New here? Start with our Start here page.
Sources: RBI, Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, rbi.org.in (accessed 27 Oct 2026); accessed 26 Oct 2026: RBI circular DPSS.CO.PD.No.1810/02.14.008/2019-20, Guidelines on Regulation of Payment Aggregators and Payment Gateways, 17 Mar 2020, rbi.org.in; Razorpay pricing page, razorpay.com; Cashfree payment gateway charges page, cashfree.com. NPCI, FAQs on Merchant Discount Rate (MDR) on select UPI P2M transactions, 15 Sep 2026 (Q3 for the 0.4% rate above Rs 2,000 and the Rs 300 cap), accessed 28 Oct 2026; NPCI statement, UPI MDR on select merchant transactions to be implemented post Diwali, 13 Oct 2026, accessed 28 Oct 2026.
About the author: Pritam Nandi is the founder of Prilix Labs, the company behind Indi Andaz. He builds Indi Andaz from Ashoknagar Kalyangarh, West Bengal, to help local Indian shops sell online and bill at the counter from one place.
Indi Andaz by Prilix Labs: an online store with UPI, card and COD checkout, plus GST billing at the counter.
Prilix Labs, Ashoknagar Kalyangarh, North 24 Parganas, West Bengal 743222
Email: indiandazsocial@gmail.com
Phone: 8653001257
© 2026 Prilix Labs
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