Decoding Payment Gateway Integration Costs in India: A 2026 Price Breakdown

By WovLab Team | May 03, 2026 | 3 min read

Deconstructing the Fees: Understanding Setup, TDR, and Annual Maintenance Charges (AMC)

When businesses start exploring options for accepting online payments, the primary question that arises is about the payment gateway integration cost in India. The pricing structures can seem complex, but they generally revolve around three core components: Setup Fees, the Transaction Discount Rate (TDR), and Annual Maintenance Charges (AMC). Understanding these is the first step toward decoding the true cost of your payment gateway.

First, the Setup Fee is a one-time cost for creating your merchant account and getting the gateway integrated into your website or application. In 2026, the Indian market has become highly competitive, leading most major players like Razorpay and PayU to waive this fee entirely for their standard plans. However, for enterprise-level solutions requiring extensive customization or dedicated support, a setup fee ranging from ₹20,000 to ₹1,00,000 might still apply.

The most significant ongoing cost is the Transaction Discount Rate (TDR). This is a percentage fee charged on every single transaction processed through the gateway. TDR is not a single number; it varies based on the payment mode. For instance:

• Domestic Credit & Debit Cards: Typically ranges from 1.8% to 3.0%.
• UPI: Often 0% for transactions below a certain threshold (e.g., ₹2,000), but can attract a fee for higher values or for specific business categories.
• Net Banking: Usually a flat fee or a percentage around 1.8% - 2.5%.
• Digital Wallets (like Paytm, PhonePe): Ranges from 1.5% to 2.5%.
• International Cards (e.g., Amex, Diners Club): Attracts the highest TDR, often between 3.0% and 4.5%, plus currency conversion charges.

Finally, there's the Annual Maintenance Charge (AMC). This is a yearly fee for keeping your account active and receiving customer support. Much like setup fees, most providers have eliminated AMCs for their standard plans to attract more SMEs. However, it's crucial to read the fine print. Some might offer a zero-AMC plan but compensate with a slightly higher TDR or charge for premium support services. Always clarify this before committing.

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

Choosing the right payment gateway is a critical decision. The ideal partner offers a blend of competitive pricing, robust technology, and features relevant to your business model. As of 2026, four providers dominate the Indian landscape: Razorpay, PayU, Stripe, and Cashfree. Here’s a comparative breakdown of their standard pricing structures to clarify the payment gateway integration cost in India.