Payment Gateway Charges Comparison (India, 2026)

If you accept payments in India, the fee that matters is not the headline percentage on a pricing page. It is the total cost across your actual mix of domestic UPI, domestic cards and, if you export, international receipts.

Those are three different fee structures, and the gateway that wins on one usually loses on another.

For domestic card and UPI acceptance, the practitioner shortlist is Razorpay, PayU and Cashfree, which sit around a 2% platform fee plus 18% GST.

For receiving international payments as an exporter, the comparison changes entirely, because a domestic MDR gateway is not built for that job and a cross-border platform such as Xflow is.

This guide compares payment gateway charges for both cases, with every fee verified against the provider's own pricing page and dated to August 2026.

It is written for ITeS, SaaS and SMB businesses in India, and it is not financial advice.

Xflow is listed first because it is the right tool for one specific job, receiving export payments, not because it beats a domestic gateway on card MDR.

It does not compete on domestic MDR at all, and if your revenue is mostly domestic you can skip straight to the roundup of international payment gateways only when exports enter the picture. Read each block on its merits.

• Xflow: Best for Indian exporters receiving international payments at the mid-market rate with automatic eFIRA.
• Razorpay: Best all-round domestic gateway with zero setup and the widest integration library.
• PayU: Best for enterprises needing custom slabs and priority settlement options.
• Cashfree: Best for businesses chasing a lower blended domestic rate and a new-merchant fee waiver.
• CCAvenue: Best for merchants who need many payment options and can absorb setup and annual charges.
• Stripe: Best for developer-heavy SaaS teams billing global cards through code.
• PayPal: Best for reach and buyer familiarity, though the cross-border receiving cost is the highest here.

The sticker price hides most of the real cost. Watch these before you sign:

• Hidden platform fees on top of MDR: Since RBI made UPI MDR-free, several gateways relabelled their charge as a "platform fee" that still lands at roughly 2% plus GST on UPI.
• Setup and annual maintenance charges: Most modern gateways charge ₹0, but some legacy providers still bill a setup fee and a recurring annual software charge that quietly erodes margin.
• International card surcharge and FX markup: Cross-border card fees run 3% to 4%, and a currency conversion markup of 2% to 4% is often stacked on top, so the effective cost of taking an overseas card can double the domestic rate.
• Settlement delay: A T+2 cycle instead of T+1 means your working capital sits with the gateway an extra day on every rupee you process.

All figures verified against each provider's public pricing as of August 2026. GST at 18% applies on top of Indian gateway fees unless stated.

Worked figure: on a ₹10,000 domestic card sale, Razorpay's 2% is ₹200, plus 18% GST of ₹36, so ₹236 leaves your settlement.

On a $4,000 export receipt, PayPal's stack of roughly 4.4% plus a 3% to 4% conversion markup costs about $296 to $336, while a mid-market cross-border route costs a fraction of that.

The calculation below shows the fee before GST for domestic cases, and the all-in cost for the $4,000 international case. Domestic figures use the standard published rates.

Read the last column carefully.

On a $4,000 export receipt, the gap between a cross-border platform and a consumer wallet such as PayPal is the difference between roughly $24 in explicit fee at the mid-market rate and $300 or more once the conversion markup is counted.

If you want the underlying detail on the wallet route, see the full breakdown of how much PayPal charges on a USD to INR receipt.

Four criteria decided each rating:

• Verified live fees: Every percentage and flat fee was checked against the provider's own pricing page in August 2026, not third-party aggregators.
• Total cost, not headline rate: We added platform fees, GST, conversion markup and setup or annual charges into one number per use case.
• Fit for the job: Domestic acceptance and cross-border receiving were scored separately, because no single tool wins both.
• Public review signal: Cons were drawn from G2 and Trustpilot patterns rather than opinion, so the trade-offs reflect real merchant experience.

A closer look at each option below, covering what it charges, where it fits, and where it genuinely falls short:

1. Xflow

Best for: Indian exporters, ITeS firms, SaaS sellers and freelancers receiving international payments who want the mid-market exchange rate rather than a marked-up one.

Xflow is a cross-border receiving platform, not a domestic card gateway.

It gives an Indian business virtual receiving accounts abroad, converts incoming foreign currency to INR at the mid-market rate and settles to your bank the next business day, with the eFIRA generated automatically for each receipt.

Charges (as of August 2026, per Xflow pricing): The Starter plan is a flat USD 12 on invoices up to USD 2,000 and 0.6% above that.

The Growth plan is a flat USD 20 up to USD 5,000 and 0.4% above that. Scale is custom for invoices of USD 10,000 and up.

FX uses the mid-market rate, so there is no hidden conversion spread, which is where most of the cost sits on a bank or wallet route.

Pros:

• Mid-market FX with the markup removed means the exchange rate itself stops being a hidden fee, which is where most of the cost sits on an export receipt rather than in the headline percentage.
• Automatic eFIRA on every transaction removes the manual foreign inward remittance paperwork that ITeS and SaaS exporters otherwise chase from their bank each quarter.
• RBI PA-CB authorisation (final, for exports and imports, granted February 2026) plus ISO 27001 and SOC 2 means funds move through a regulated cross-border channel rather than a workaround.

Cons:

• It does nothing for domestic UPI or card acceptance, so a purely India-facing seller gets no value from it and needs a domestic gateway alongside.
• The flat-fee model is least efficient on very small invoices, where USD 12 on a USD 500 receipt is a higher effective percentage than the 0.6% tier.
• As a newer platform its integration library and third-party reviews are thinner than the decade-old domestic incumbents, so custom workflows may need direct support.

If most of your revenue arrives from abroad, weigh the FX transparency here against a domestic gateway's card MDR before you commit, because you are comparing two different fees.

2. Razorpay

Best for: Indian businesses that want one dependable domestic gateway with the largest integration and plugin ecosystem.

Razorpay is the default domestic gateway for a large share of Indian startups, handling cards, UPI, netbanking and wallets through a single dashboard and API.

Charges (as of August 2026, per Razorpay pricing): A flat 2% platform fee on domestic cards, UPI and netbanking, plus 18% GST. International cards are up to 3%. Setup is ₹0 and there is no annual maintenance charge.

Settlement is T+1 on standard plans.

Suppose a D2C store processes ₹10 lakh a month on cards. At 2% that is ₹20,000, plus 18% GST of ₹3,600, so ₹23,600 leaves each month before any refund or chargeback cost.

Across a year that is roughly ₹2.83 lakh in gateway charges on ₹1.2 crore of card revenue, which is the number worth budgeting for rather than the 2% on its own.

Pros:

• The integration library covers most e-commerce and SaaS stacks out of the box, which cuts developer time when you are wiring up checkout for the first time.
• T+1 settlement on the standard plan keeps working capital moving faster than the T+2 default at some rivals.
• Zero setup and annual charges make the total cost predictable, so the 2% platform fee is genuinely the number you pay.

Cons:

• G2 reviewers repeatedly flag sudden settlement holds and account freezes during risk reviews, which can strand funds without much warning.
• The 2% platform fee now applies even to UPI, so the RBI zero-MDR rule does not lower your cost the way merchants often expect. For example, a merchant collecting ₹5,000 through a business UPI checkout still sees about ₹100 taken as a platform fee plus GST on top, despite expecting UPI to be free.
• Support response times draw criticism on public reviews once you are past onboarding and into a live dispute.

For an earlier-stage view, this comparison of the best payment gateway for startups weighs Razorpay against its closest domestic rivals.

3. PayU

Best for: Larger merchants and enterprises that want negotiated slabs and priority settlement options.

PayU is a long-standing domestic gateway with deep bank relationships and a strong presence in high-volume retail and enterprise checkout.

Charges (as of August 2026, per PayU pricing): 2% on domestic cards, netbanking and wallets, plus GST. International, Amex, Diners and EMI transactions are 3%. No setup, onboarding or annual fee.

Standard settlement is T+2, with same-day and priority options for eligible categories.

Pros:

• Custom pricing slabs for higher volumes mean large merchants can negotiate below the 2% list rate, which smaller gateways rarely offer.
• A broad set of payment methods including EMI and BNPL widens conversion for higher-ticket carts.
• Priority and same-day settlement is available for qualifying businesses that need faster cash cycles.

Cons:

• The default T+2 settlement is a day slower than Razorpay and Cashfree unless you qualify for and pay toward priority settlement.
• Trustpilot and G2 reviews mention a slower, more manual onboarding and documentation process than newer gateways.
• The 3% band captures EMI and Amex, so a merchant with premium-card customers pays more than the 2% headline suggests.

4. Cashfree

Best for: Businesses that want a lower blended domestic rate and can use the new-merchant fee waiver.

Cashfree covers payments and payouts in one platform and is often picked for its slightly lower domestic pricing.

Charges (as of August 2026, per Cashfree charges): Domestic cards are 1.6% plus a 0.25% platform fee, so about 1.85% before GST. International cards are 2.69% plus the 0.25% platform fee.

There is no setup or maintenance cost, and merchants signing on from 21 July 2026 get a 0% platform fee up to ₹20 lakh GMV through 31 March 2027.

Pros:

• The blended domestic rate sits below the flat 2% at Razorpay and PayU, which adds up across high transaction volume.
• The new-merchant platform-fee waiver meaningfully cuts cost for the first ₹20 lakh of processing if you qualify.
• Combined payments and payouts in one account suits marketplaces that both collect and disburse.

Cons:

• The split of transaction fee plus platform fee makes the true rate less obvious than a single flat percentage, so it needs adding up.
• G2 reviewers report occasional reconciliation and settlement mismatches that take support time to resolve.
• The waiver is time-bound and volume-capped, so the effective rate rises once the promotional window or GMV ceiling passes.

5. CCAvenue

Best for: Merchants who need the widest set of payment options and currencies and can absorb setup and annual charges.

CCAvenue is one of India's oldest gateways, known for supporting a very large number of banks, cards and international currencies.

Charges (as of August 2026, per CCAvenue pricing): Domestic transactions run 2% to 3% and international up to 4%.

Unlike newer rivals, the Privilege plan carries a setup fee of up to ₹30,000, and annual software charges range from ₹1,200 to ₹3,600, though a free Startup Pro tier waives setup and the first year of maintenance.

Suppose a low-volume merchant on the Privilege plan processes ₹2 lakh of cards in year one.

The ₹30,000 setup fee and a ₹3,600 annual charge add ₹33,600 of fixed cost, which on ₹2 lakh works out to about 17% on top of the 2% to 3% card rate for that first year.

At higher volume the fixed charge spreads thin and matters far less, so this plan suits merchants processing enough to dilute it.

Pros:

• Support for well over 200 payment options and many presentment currencies suits merchants selling across borders under one gateway.
• The free Startup Pro tier removes the setup barrier for early-stage merchants who can accept the standard rates.
• Long operating history means mature fraud and reconciliation tooling for high-volume sellers.

Cons:

• The paid tier's setup fee and recurring annual software charge are costs most modern gateways have dropped entirely, so the total cost is higher than the transaction rate alone.
• Reviewers on G2 and Trustpilot describe a dated dashboard and a steeper integration experience than Razorpay or Stripe.
• The 2% to 3% domestic band tops out above the flat-rate rivals for standard card traffic.

6. Stripe

Best for: Developer-heavy SaaS teams that bill global cards through code and want strong documentation.

Stripe is the developer's gateway of choice, with clean APIs and broad global card coverage, used widely by SaaS billing internationally.

Charges (as of August 2026, per Stripe India pricing): 2% on India-issued Mastercard and Visa, 3% on cards issued outside India, 3.5% on foreign Amex, and an extra 2% when currency conversion is required.

Debit MDR is capped at 0.4% up to ₹200. There is no setup fee.

Pros:

• The API and documentation are the strongest in the market, which cuts engineering time for custom subscription and usage-based billing.
• Global card acceptance in many currencies suits SaaS selling to customers worldwide from an India entity.
• No setup fee and transparent per-transaction pricing make cost modelling straightforward for finance teams.

Cons:

• The stacked 2% currency-conversion fee on top of the 3% to 3.5% international card rate makes cross-border card acceptance expensive versus a dedicated receiving route.
• Settlement to Indian banks is typically slower, often around a week, which strains working capital compared with T+1 domestic gateways.
• Reviewers note that account holds and compliance reviews can pause payouts with limited notice for India-registered accounts.

7. PayPal

Best for: Sellers who want maximum buyer familiarity and reach, accepting that it is the costliest way to receive here.

In India, PayPal handles cross-border receiving only, since April 2021, so it is not a domestic gateway. Buyers know the brand, which can lift conversion on overseas checkouts.

Charges (as of August 2026, per PayPal India fees): A commercial transaction fee of 4.4% plus a fixed fee of $0.30 for USD, plus a currency conversion markup of 3% to 4% over the mid-market rate.

Adding the parts, the effective cost on a typical export receipt lands between 5% and 8%.

Put in rupees, the gap is easier to feel. Suppose a SaaS exporter receives $4,000 through PayPal at an effective 5% to 8%.

That is about $200 to $320 lost, or roughly ₹17,400 to ₹27,800 at about ₹87 to the dollar, on a single receipt.

A mid-market cross-border route settles the same $4,000 at the reference exchange rate with only a small explicit fee, so most of that rupee gap comes from the conversion markup rather than the headline percentage.

Xflow covers cross-border receiving only, not domestic MDR, so this contrast holds for export income and not for India sales.

Pros:

• Buyer trust and one-click familiarity can raise checkout conversion on international sales, which sometimes offsets the higher fee.
• Wide global reach means most overseas customers already have an account and can pay without friction.
• The reduced FIRC fee, halved to ₹100 per transaction for up to 20 transactions, trims one line of compliance cost.

Cons:

• The all-in 5% to 8% effective cost is the highest in this comparison, driven mostly by the conversion markup buried behind the headline 4.4%.
• Trustpilot reviews frequently cite fund holds and reserve requirements that lock a portion of receipts for weeks.
• Withdrawal to an Indian bank is manual and adds its own conversion step, so the cost is easy to underestimate at settlement.

Match the tool to where your money actually comes from.

• Mostly domestic UPI and cards: Start with Razorpay or Cashfree for the flat or lower blended rate and T+1 settlement. Check Cashfree's new-merchant waiver if you are just launching.
• Enterprise volume with negotiation room: Ask PayU for a custom slab and weigh priority settlement against the T+2 default.
• Developer-led SaaS billing globally: Stripe's API pays for itself in build time, but budget for the conversion markup on foreign cards.
• Mostly export or international receipts: A domestic gateway is the wrong tool. A cross-border platform such as Xflow keeps the exchange rate at mid-market and handles the eFIRA. Freelancers receiving from abroad can compare options in this guide to the payment gateway for freelancers.
• Cash-flow sensitive: Settlement speed is a real cost. Understand each provider's cycle in this explainer on payment gateway settlements before you optimise on rate alone.

There is no single winner because payment gateway charges are really three separate questions.

For domestic card and UPI acceptance, Razorpay and Cashfree lead on flat or blended rate and T+1 settlement, PayU suits enterprises with negotiating room, and CCAvenue trades higher fees for the widest option set.

For export receipts, a domestic MDR gateway is not the right tool at all, and a cross-border platform such as Xflow keeps the exchange rate at mid-market while handling the compliance paperwork.

Price the use case you actually run, not the headline percentage.