The Ultimate Guide to Payment Gateway Integration Costs in India (2026)

By WovLab Team | April 19, 2026 | 3 min read

Deconstructing Payment Gateway Pricing: Setup Fees, TDR, and AMC Explained

Understanding the payment gateway integration cost in India begins with breaking down the three fundamental components of pricing that providers offer. For any business stepping into the online world, these terms become part of the daily lexicon, yet they are often shrouded in complexity. Getting a firm grasp on them is the first step toward making a financially sound decision for your e-commerce venture.

First is the Setup Fee. This is a one-time cost charged by the gateway provider to get your account configured and running. Historically, this was a significant barrier, sometimes running into thousands of rupees. However, in the hyper-competitive market of 2026, most major players like Razorpay and PayU have completely waived setup fees for their standard plans to attract new businesses. High-risk businesses or those requiring extensive customization might still encounter this fee.

Next, and most crucial, is the Transaction Discount Rate (TDR). This is the fee you pay on every single transaction processed through the gateway. It's almost always a percentage of the transaction value. For instance, a standard TDR might be 2% for credit and debit cards. So, on a ₹1,000 sale, the gateway keeps ₹20. This rate varies significantly based on the payment mode:

• Domestic Credit/Debit Cards: Typically 1.8% - 2.5%
• UPI: Often 0% for low-value transactions, but may have a small fixed fee or percentage for higher amounts.
• Net Banking: Can range from 1.8% to 3%.
• Wallets (like PhonePe, Google Pay): Around 1.5% - 2.2%.
• International Cards (e.g., Amex, Diners Club): Usually higher, around 3% - 3.5%.

Finally, there's the Annual Maintenance Charge (AMC). This is a recurring yearly fee for maintaining your account, accessing the dashboard, and receiving support. Similar to setup fees, intense competition has led most providers to waive the AMC for standard plans. However, it can still apply to premium plans or enterprises with specific service level agreements (SLAs).

A lower TDR might seem attractive, but always check if it comes with a higher AMC or hidden charges. The true cost is a combination of all three components, weighed against your specific transaction patterns.

Cost Comparison: Razorpay vs. PayU vs. Stripe for Indian Businesses

Choosing the right payment gateway is a critical decision. The market leaders in India—Razorpay, PayU, and Stripe—each offer competitive features but have distinct pricing structures. Understanding these differences is key to optimizing your payment gateway integration cost in India. While headline rates can be similar, the devil is in the details of their fee structures for different payment methods and business scales.

Here’s a comparative breakdown based on typical 2026 standard plans for a domestic business: