Unlocking the True Cost: A Complete Guide to Payment Gateway Charges in India

By WovLab Team | March 14, 2026 | 3 min read

Beyond the TDR: Understanding Setup Fees, AMC, and Other Fixed Charges

When businesses start exploring the landscape of payment gateway charges india, their attention is almost immediately captured by the TDR, or Transaction Discount Rate. This is the percentage fee charged on every single transaction processed. While undeniably a critical component, focusing solely on the TDR is like judging a car by its mileage alone; it doesn't give you the full picture of the total cost of ownership. A low TDR can be easily offset by a series of fixed charges that many merchants overlook during their initial evaluation.

Let's break down these common fixed costs:

• Setup Fees: This is a one-time fee for integrating the payment gateway with your platform. While many modern providers have waived this fee to attract new customers, it can still be a factor, especially for custom integrations or high-risk businesses. Expect this to range anywhere from ₹0 to ₹25,000 depending on the complexity and the provider.
• Annual Maintenance Charges (AMC): This is a recurring yearly fee to keep your merchant account active. Providers justify this as the cost of maintaining your account, providing support, and ensuring security compliance. AMCs can vary significantly, from being completely waived to ₹5,000 or more per year.
• Integration Fees: Beyond the initial setup, some gateways charge extra for specific plugins or SDKs needed for popular platforms like Magento, WooCommerce, or Shopify. Always verify if the plugin for your specific e-commerce platform is free or comes at an additional cost.

Before signing any contract, demand a complete fee schedule. Ask explicitly, "Beyond the TDR, what are all the other charges I will be subject to, including setup, annual, and integration fees?" This single question can save you from costly surprises down the road.

Here’s a simplified comparison to illustrate how a lower TDR doesn't always mean a lower overall cost for a small business processing ₹50,000 monthly: