Payment gateway offers the desired and vital link between the online seller (merchant), its client, the client’s online payment instrument provider (credit/debit card or any other online payment mode as chosen by the client for making online payment), and the bank account of the online merchant. The payment gateway facilitates the online payment made by the client, gathers the funds from client’s bank or other entities (Digital wallets/Cash Card, etc.) and then transfers those funds to the bank account of the merchant. To provide these services, payment gateway charges fees to an online seller, which could vary depending upon several factors.

If you are an online merchant, you need to know about the fee related with a payment gateway, that you will have to pay once you hire the services of a payment gateway in India. Your payment gateway provider will also offer you a merchant account.

The Costs Determinants

Various factors govern the cost of a payment gateway in India for your e-commerce.

Setup Fee

This one-time fee is paid when you sign-up for a payment gateway initially. The fee is non-recurring in nature and is to be paid towards payment gateway integration within your e-commerce web portal.

Annual/Monthly Maintenance Fees

You will be required to pay a pre-designated sum of money or fee every month/yearly to the payment gateway provider towards maintenance charges for the services provided by payment gateway. If you enroll for more services, this fee may get higher. For instance, a leading payment gateway in India may offer you EMI or auto-billing service, so that a pre-designated sum is charged to your client’s credit card each month for a product or service he/she has purchased. In this case, there may be some extra fee charged by the payment gateway provider. Some payment gateway providers also offer you a range of fraud, risk prevention, and management services, and you may be required to pay more when you avail these.

● Discount Rates

This fee amount is charged by the payment gateway provider for every transaction your e-commerce processes. If you hire an affordable payment service like, the discount rates can vary from 1.5% to 3.75% (lesser for debit cards and higher for international credit cards). It also varies with other payment modes. These fee amounts are split between the credit/debit card provider, the online gateway provider, and your merchant account provider. With most payment gateways the cost decreases when your sales grow.