Don't Overpay: A Complete Breakdown of Payment Gateway Integration Charges in India (2026)

By WovLab Team | April 20, 2026 | 3 min read

Understanding the Core Fee Structure: Setup vs. TDR vs. AMC

Navigating the landscape of payment gateway integration charges in India can feel overwhelming. Gateways often present a complex web of fees that make it difficult to predict your actual costs. To make an informed decision, you must first understand the three fundamental components of pricing: the Setup Fee, the Transaction Discount Rate (TDR), and the Annual Maintenance Contract (AMC). Think of it like buying a car: the setup fee is the one-time showroom price, the TDR is your per-kilometer running cost (fuel, tires), and the AMC is your yearly servicing and insurance cost.

The Setup Fee is a one-time cost for creating your merchant account and integrating the payment gateway with your website or app. In 2026, most major players like Razorpay and PayU have waived this for their standard plans to attract more businesses, but it can still apply for custom enterprise plans with specific requirements. The Transaction Discount Rate (TDR) is the most significant ongoing cost. It's a percentage of each transaction amount that the gateway charges for processing the payment. For example, if your TDR is 2% and a customer pays you ₹1,000, the gateway keeps ₹20. This rate varies based on the payment mode—credit cards, debit cards, UPI, net banking, and wallets all have different TDRs. Finally, the Annual Maintenance Contract (AMC) is a yearly fee charged for account maintenance, support, and keeping your integration compliant. Similar to setup fees, many providers have dropped the AMC for standard plans, but it’s crucial to check the fine print, especially for premium or high-volume plans.

Understanding the interplay between a zero-setup fee, a competitive TDR, and a non-existent AMC is the first step to accurately forecasting your payment processing expenses.

Comparing Integration & Transaction Charges in India: Razorpay vs. PayU vs. Stripe

Choosing the right partner is critical, as the differences in payment gateway integration charges in India can significantly impact your profitability. Razorpay, PayU, and Stripe are the dominant players, each with a distinct pricing strategy tailored to different business needs. Razorpay and PayU are known for their competitive, localized pricing and extensive support for Indian payment methods, while Stripe positions itself as a premium option, often appealing to global SaaS companies and businesses prioritizing a developer-first API experience.

To illustrate the differences, let's compare their standard, publicly listed charges for a typical Indian business in 2026. Remember, these rates can often be negotiated if your transaction volume is substantial.