Everything you need to know about payment gateway charges

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As per an RBI report, online transactions in India are set to cross the daily average of 1.5 billion by 2025. The net value of these digital transactions will triple to Rs.15 trillion from the current Rs 5 trillion in the next 4 years. While this can be a turning point for online businesses, there is an urgent need for payment gateways that host swift and secure transactions.

Online businesses demand a trustworthy and dependable payment gateway to enable a meteoric-fast transaction process. Merchants are slowly moving away from manually accepting online payments and shifting to collect automated payments – a feature facilitated by super-efficient payment gateways.

This sheds light on the need for affordable payment gateways that not only help online businesses streamline their payment process, but also does not burn a hole in their pocket.

Payment gateway systems accept payments within a single tap and help reduce the costs. It facilitates receiving funds from various payment modes like credit/debit cards, eWallets, UPI, and Pay Later. The return on investment for integrating online stores with a payment gateway is much higher compared to payment gateway charges.

However, merchants on the hunt for the best payment gateway must not settle for excessively high charges and look for an affordable alternative that offers premium features at no extra cost.

Read on to know what the payment gateway charges are, what it comprises, and what should merchants look out for!

What are Payment Gateway Charges?

To process online payments using a reliable gateway, business owners need to pay a payment gateway fee. Multiple components make up the bulk of payment gateway charges levied by a service provider.

One principal factor determining the payment gateway charges is the rate of transactions done through credit cards, debit cards, UPI, and wallets which differ across businesses.

Components of Payment Gateway Charges

Businesses are charged a payment gateway fee & here is a break-up of all the components under the umbrella of payment gateway charges.

  1. Setup Charge

Businesses are required to pay a one-time setup fee for setting up a merchant account with a payment gateway provider. The setup charge is a non-recurring expense that the service providers charge for merchant onboarding. This includes expenses accrued for document verification, merchant KYC, infrastructure, and operating costs incurred by the payment gateway.

  1. Annual Maintenance Charge (AMC)

Payment gateways levy an annual maintenance charge to meet their expenses. These range from maintenance, operations, customer support, security up-gradation, among other services. The pricing of AMC plans depends on the type of account the merchant has opted for.

  1. Integration Charge

This is the fee levied on businesses to integrate a payment gateway into the merchant website or app. Integration charges are determined by the respective platform the payment gateway has to be integrated into (website or an app).

  1. Merchant or Transaction Discount Rate (TDR)

TDR is the amount charged on the total purchase value before transferring the rest into the merchant account. The amount consists of processing and bank charges, and is decided in agreement with the payment gateway provider and the merchant.

For instance, when a consumer makes an online purchase using a specific payment gateway, some percentage of the total purchase value is deducted from the payment gateway provider and the rest is transferred to the merchant account. The TDR is pre-determined by the payment gateway provider.


There are many factors online businesses must consider before settling for a payment gateway that best suits their business. An important factor that makes the most difference is how it is priced. Your business deserves a high-octane payment gateway service. However, the move shouldn’t bleed your accounts dry.

This is where Zaakpay’s super affordable payment gateway comes in. Merchants can now charge their business sales with payment gateways at zero setup and maintenance fees. Zaakpay’s standard plan offers a 0% transaction fee for UPI and Rupay cards. The Enterprise Plan can be customized as per the needs of the business. So choose wisely & take your business to new heights at an affordable price.


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