{"id":27771,"date":"2026-09-09T18:57:56","date_gmt":"2026-09-09T13:27:56","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=27771"},"modified":"2026-09-22T11:20:57","modified_gmt":"2026-09-22T05:50:57","slug":"payment-gateway-pricing-by-business-category-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/payment-gateway-pricing-by-business-category-india\/","title":{"rendered":"How Payment Gateway Pricing Works Across Industries in India: Education, Healthcare, E-Commerce, SaaS, BFSI, and More (2026)"},"content":{"rendered":"<p>Two businesses sign up for a 2% payment gateway on the same day. One is a D2C clothing brand, the other an EdTech platform. Three months later, their actual cost per rupee collected differs by roughly 40 basis points. Neither founder can explain why.<\/p>\n<p>This is the quiet frustration of Indian payments. Founders discover deductions they never budgeted for. The MDR you agreed to is one number; your actual cost per rupee collected depends on your payment mix, and the two are rarely identical in any industry. The trigger is usually a quarterly cost review, a spike in failed payments, or a renewal decision.<\/p>\n<p>Here is the reframe that answers it. MDR is one variable in a five-part cost structure. Your payment mix, the share of UPI, domestic cards, EMI, and international cards, determines your effective rate. This guide breaks down how payment gateway pricing by industry in India works in 2026.<\/p>\n<div style=\"border-left: 4px solid #007BFF; background: #f0f8ff; padding: 25px; margin: 30px 0; font-family: Arial, sans-serif; text-align: left;\">\n<h3 style=\"margin-top: 0; color: #007bff; font-size: 22px;\">Key Takeaways<\/h3>\n<ul style=\"margin: 15px 0; padding-left: 20px; color: #333; line-height: 1.6;\">\n<li>Payment gateway pricing in India has five components: MDR\/TDR, platform fee, 18% GST (charged on the fee, not the transaction value), AMC\/setup, and payment failure costs.<\/li>\n<li><a href=\"https:\/\/razorpay.com\/pricing\/\">Razorpay&#8217;s 90-day 0% platform fee offer<\/a> waives the standard 2% on domestic transactions for new merchants (up to Rs 5 lakh GMV, activated on or after 1 July 2026), making it the lowest-cost entry point across every industry covered in this guide.<\/li>\n<li>UPI and RuPay debit carry zero MDR at the bank level since January 2020, but aggregators may apply a platform fee on top.<\/li>\n<li>Your industry&#8217;s payment mix drives your blended effective rate more than the headline MDR does.<\/li>\n<li>Parliament has passed the Taxation and Other Laws (Amendment) Bill, 2026, an enabling law for possible future UPI MDR. No charge is live.<\/li>\n<li>Healthcare, BFSI, and enterprise SaaS pricing is typically custom.<\/li>\n<\/ul>\n<\/div>\n<h2>What Is Payment Gateway Pricing Made Of? The Five Cost Layers Every Indian Business Pays<\/h2>\n<p>Indian payment gateway pricing has five layers: the MDR or TDR (a percentage of each transaction), an 18% GST applied to that fee alone, an Annual Maintenance Charge (AMC) if applicable, setup or integration fees, and the hidden cost of failed payments.<\/p>\n<h3>MDR vs TDR vs Platform Fee &#8211; What These Terms Actually Mean in India<\/h3>\n<ul>\n<li><strong>MDR (Merchant Discount Rate):<\/strong> The fee charged by acquiring banks and card networks, subject to RBI regulation for certain payment modes.<\/li>\n<li><strong>TDR (Transaction Discount Rate):<\/strong> The all-in rate charged by a payment aggregator, bundling MDR plus their own margin.<\/li>\n<li><strong>Platform Fee: <\/strong> A charge for gateway infrastructure, including the dashboard, smart routing, retry logic, and reporting layer that drives higher success rates. This is the fee applied to zero-MDR UPI transactions.<\/li>\n<li><strong>Convenience Fee:<\/strong> A fee passed through to the customer at checkout, legal in India with RBI disclosure requirements.<\/li>\n<\/ul>\n<h3>GST on Payment Gateway Fees &#8211; The Hidden 18% Most Founders Miss<\/h3>\n<p>GST at 18% applies to the gateway fee, not the transaction value. On a Rs 1,000 transaction with a 2% platform fee, the fee is Rs 20. GST is Rs 3.60. Total deduction is Rs 23.60. A GST invoice from the aggregator is required for input tax credit eligibility. Note that GST applies to the processing fee charged by the aggregator, not the transaction amount itself.<\/p>\n<h3>AMC and Setup Fees &#8211; When the &#8220;Free&#8221; Gateway Is Not Free<\/h3>\n<p>Some legacy providers charge Rs 4,999 to Rs 9,999 per year in AMC. At Rs 1 lakh\/month GMV, a Rs 9,999 AMC adds roughly 0.83 percentage points to your effective rate. Zero AMC plus a slightly higher MDR usually favours lower-volume merchants. Setup fees can range from Rs 2,000 to Rs 20,000 at some providers.<\/p>\n<h3>The Silent Cost Nobody Puts on a Pricing Page &#8211; Failed Payments<\/h3>\n<blockquote><p><strong>DID YOU KNOW:<\/strong> India&#8217;s UPI accounted for 85.5% of digital payment transactions by volume in H2 2025 but only 9.5% of transaction value, a critical insight for high-ticket industries.<\/p><\/blockquote>\n<p>A failed payment costs you the entire order value, not the MDR. At Rs 2 lakh\/month attempted GMV, the gap between an 80% and a 93% success rate is roughly Rs 26,000\/month in lost revenue.<\/p>\n<h2>How Does the RBI Regulate Payment Gateway Pricing in India?<\/h2>\n<p>The RBI and the Government of India set the regulatory floor. Since January 2020, UPI and RuPay debit carry zero MDR at the bank level. Credit cards and prepaid instruments have no MDR cap and are typically priced around 2-3%. International cards are usually priced at 3 to 3.5% or higher.<\/p>\n<h3>The Zero-MDR Policy &#8211; What It Covers and What It Does Not<\/h3>\n<p><strong>What zero-MDR covers:<\/strong> bank-to-bank UPI P2M and RuPay debit transactions. Since January 2020 there is no MDR on UPI and RuPay debit, while credit cards and PPIs carry around 2-3% with no cap.<\/p>\n<p><strong>What it does NOT cover:<\/strong> gateway platform fees, RuPay credit card on UPI above Rs 2,000, and premium tooling. UPI transactions up to Rs 2,000 attract zero MDR for small merchants and are eligible for a 0.15% incentive.<\/p>\n<h3>Is UPI MDR Coming Back? What the 2026 Policy Debate Means for Merchants<\/h3>\n<p>Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026, an enabling law, not a live charge. The government has clarified that UPI remains free for users and small merchants, with any future MDR potentially limited to larger merchants.<\/p>\n<p><strong>Practical action:<\/strong> If your monthly GMV exceeds Rs 5 lakh and a majority is UPI, negotiate contracts with MDR-reinstatement flexibility clauses.<\/p>\n<h3>How the RBI&#8217;s 2FA Mandate From April 2026 Affects Gateway Costs<\/h3>\n<p>The RBI continues to strengthen authentication through its Authentication Mechanisms for Digital Payment Transactions Directions, 2025, requiring compliance by 1 April 2026. Stronger authentication can improve success rates by reducing false declines.<\/p>\n<blockquote><p><strong>PRO-TIP:<\/strong> Review your gateway contract for a fee-change notification clause. RBI regulatory updates can trigger pricing changes communicated via dashboard notifications rather than proactive email.<\/p><\/blockquote>\n<h2>How Do You Calculate Your Blended Effective Rate?<\/h2>\n<p>Your blended effective rate is the true percentage of GMV lost to processing costs. Calculate it by mapping transaction volume by payment method, applying the applicable fee, adding 18% GST, adding monthly AMC divided by GMV, and summing across segments.<\/p>\n<h3>The Blended Effective Rate Formula &#8211; Step by Step<\/h3>\n<p>Worked example for a D2C brand at Rs 5 lakh\/month GMV:<\/p>\n<table>\n<thead>\n<tr>\n<th>Payment Method<\/th>\n<th>Volume Share<\/th>\n<th>Amount<\/th>\n<th>Fee Rate<\/th>\n<th>Fee<\/th>\n<th>GST (18%)<\/th>\n<th>Total Deduction<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>UPI<\/td>\n<td>60%<\/td>\n<td>Rs 3,00,000<\/td>\n<td>0% MDR + 2% platform<\/td>\n<td>Rs 6,000<\/td>\n<td>Rs 1,080<\/td>\n<td>Rs 7,080<\/td>\n<\/tr>\n<tr>\n<td>Domestic Cards<\/td>\n<td>30%<\/td>\n<td>Rs 1,50,000<\/td>\n<td>2%<\/td>\n<td>Rs 3,000<\/td>\n<td>Rs 540<\/td>\n<td>Rs 3,540<\/td>\n<\/tr>\n<tr>\n<td>EMI\/Credit<\/td>\n<td>10%<\/td>\n<td>Rs 50,000<\/td>\n<td>3%<\/td>\n<td>Rs 1,500<\/td>\n<td>Rs 270<\/td>\n<td>Rs 1,770<\/td>\n<\/tr>\n<tr>\n<td>AMC (zero)<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<td>&#8211;<\/td>\n<td>Rs 0<\/td>\n<\/tr>\n<tr>\n<td><strong>Total<\/strong><\/td>\n<td><\/td>\n<td><strong>Rs 5,00,000<\/strong><\/td>\n<td><\/td>\n<td><strong>Rs 10,500<\/strong><\/td>\n<td><strong>Rs 1,890<\/strong><\/td>\n<td><strong>Rs 12,390<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Blended rate<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><strong>2.48%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In this example, the standard domestic rate is 2%. The blended effective rate rises to 2.48% because EMI transactions (at 3%) and GST (18% on all fees) add to the base cost. This pattern applies across every payment gateway in India. The variables that differ between providers are AMC, setup fees, and success rate. In this case, Razorpay&#8217;s zero-AMC structure means 2.48% is the complete cost. A provider charging Rs 4,999 AMC on top of the same rate structure would push this to 2.56% at Rs 5 lakh monthly GMV.<\/p>\n<h3>What Drives Your Blended Rate Up or Down by Industry<\/h3>\n<ul>\n<li><strong>High UPI volume<\/strong> (retail, food, education): lower blended rate, but platform fees dominate.<\/li>\n<li><strong>High credit card volume<\/strong> (healthcare, luxury D2C, B2B SaaS): rises toward 2.5-3%.<\/li>\n<li><strong>High EMI volume<\/strong>: adds 0.5-1% to the blended rate.<\/li>\n<li><strong>International card volume<\/strong>: at 3-3.5% pulls the blended rate up sharply.<\/li>\n<\/ul>\n<h2>Payment Gateway Pricing for Education Institutions and EdTech in India 2026<\/h2>\n<p>Education institutions and EdTech platforms pay the standard 2% platform fee plus GST for domestic transactions, with zero AMC and zero setup fees. On UPI payments (common for fee collection), the 2% is a platform fee; UPI MDR is zero by RBI mandate. Above Rs 5 lakh per month, custom enterprise pricing is available.<\/p>\n<h3>What Makes Education Gateway Pricing Different From Retail<\/h3>\n<p><strong>Payment pattern:<\/strong> predictable annual spikes (June-July admissions, January renewals) followed by low-volume months. <strong>UPI Autopay for instalment fees:<\/strong> parents set up recurring mandates, carrying a per-mandate creation fee and per-debit fee. <strong>NEFT\/RTGS bulk payments:<\/strong> virtual bank accounts (Smart Collect) let schools reconcile offline transfers automatically. See our guide to <a href=\"https:\/\/razorpay.com\/blog\/online-education-classes-payments-solutions\">online education classes payment solutions<\/a>.<\/p>\n<h3>NGO and Government Body Pricing &#8211; What Changes at the Institutional Level<\/h3>\n<p>NGOs accepting donations may generate 80G-compliant receipts. Government-linked fee collection may qualify for custom institutional pricing. FCRA-registered NGOs receiving international donations need a gateway supporting RBI-compliant foreign contribution routing.<\/p>\n<blockquote><p><strong>PRO-TIP:<\/strong> Education institutions and NGOs processing above Rs 5 lakh per month are eligible for a custom pricing conversation. Volume-based pricing becomes increasingly negotiable as monthly GMV grows beyond this threshold.<\/p><\/blockquote>\n<p>New education institutions and EdTech platforms can process their first admission cycle at zero platform cost under Razorpay&#8217;s 90-day 0% offer, with Rs 5 lakh in fee-free domestic transactions auto-applied on activation.<\/p>\n<h2>Payment Gateway Pricing for Healthcare Businesses in India 2026<\/h2>\n<p>Healthcare businesses, including hospitals, clinics, diagnostic centres, and pharmacies, typically pay the standard 2% platform fee. The real cost is driven by high-ticket EMI, insurance and TPA routing, and the need for both online and POS acceptance.<\/p>\n<h3>The Three Healthcare-Specific Cost Drivers<\/h3>\n<p><strong>High-ticket EMI and BNPL:<\/strong> a Rs 3,50,000 procedure on credit card EMI carries a higher effective rate than routine UPI OPD payments. <strong>Insurance and TPA collections:<\/strong> insurers pay via NEFT\/RTGS against pre-approved claims, needing virtual account infrastructure. <strong>Multi-location settlement:<\/strong> a hospital chain needs consolidated settlement reporting with branch-level breakdowns.<\/p>\n<h3>Teleconsultation and Digital Health Payments<\/h3>\n<p>Payment Links are the primary collection tool for teleconsultation fees, shareable via WhatsApp. Dynamic QR codes at OPD counters let patients scan and pay via UPI. The Affordability Suite for elective procedures typically carries an additional platform fee.<\/p>\n<p>Clinics and diagnostic centres launching digital collections can use Razorpay&#8217;s 90-day 0% platform fee offer to process up to Rs 5 lakh in patient payments at zero gateway cost, covering the typical ramp-up period for a new digital payment workflow.<\/p>\n<h2>Payment Gateway Pricing for E-Commerce and D2C Brands in India 2026<\/h2>\n<p>E-commerce and D2C brands pay a blended effective rate of approximately 2 to 2.5% plus GST. The critical variable is not MDR but checkout success rate: a 5-percentage-point gap translates to roughly Rs 25,000 in lost revenue per Rs 5 lakh of attempted GMV.<\/p>\n<h3>The Payment Mix That Defines D2C Gateway Costs<\/h3>\n<p>Typical split: 55-65% UPI, 25-30% domestic cards, 5-10% EMI\/BNPL, 2-5% COD. UPI platform fee is now the dominant cost. COD carries a 3-5% RTO rate. If your festive-month GMV crosses Rs 5 lakh, initiate a custom pricing conversation.<\/p>\n<h3>Tokenisation, One-Click Checkout, and What They Cost D2C Brands<\/h3>\n<p>Network tokenisation is RBI-mandated. Under the rules effective October 1, 2022, only issuing banks and card networks can store card credentials. Each 1% conversion improvement at Rs 5 lakh GMV equals Rs 5,000 in recovered revenue. Explore <a href=\"https:\/\/razorpay.com\/blog\/one-click-integrations-with-razorpay-optimizer\">one-click integrations with Razorpay Optimizer<\/a>.<\/p>\n<p>D2C brands in soft-launch phase can process their first Rs 5 lakh in domestic orders at zero platform cost under <a href=\"https:\/\/razorpay.com\/pricing\/\">Razorpay&#8217;s 90-day 0% offer<\/a>, giving founders three months to optimise checkout conversion before gateway fees enter the unit economics.<\/p>\n<h3>International Customers and Cross-Border Pricing for E-Commerce<\/h3>\n<p>International card transactions carry 3-3.5% MDR plus a currency conversion markup. Indian businesses can accept international payments in multiple currencies via international card gateway integrations.<\/p>\n<h2>Payment Gateway Pricing for SaaS Businesses in India 2026<\/h2>\n<p>SaaS businesses face a bifurcated pricing problem: domestic subscriptions via UPI Autopay carry zero MDR plus a platform fee, while international card billing at 3 to 3.5% plus a subscription add-on fee means an effective rate ranging from 2% to over 5%.<\/p>\n<h3>Domestic SaaS Billing &#8211; UPI Autopay as the Cost-Optimal Rails<\/h3>\n<p>UPI Autopay mandates carry mandate creation and per-debit fees, typically lower than card-based recurring billing. For plans below Rs 1,000\/month, UPI Autopay is usually cost-optimal. A gateway without smart retry fails a renewal and loses the subscription. See how to <a href=\"https:\/\/razorpay.com\/blog\/pause-a-subscriptions-for-customers-razorpay\">pause a subscription for customers<\/a>.<\/p>\n<p>SaaS startups validating pricing and billing logic in their first 90 days can do so at zero platform cost under Razorpay&#8217;s 90-day 0% offer. Every subscription renewal during the offer window is fee-free, so the MRR reported to investors matches what lands in the bank account. For a deeper breakdown of SaaS-specific TCO, including the offer mechanics, see our complete guide to <a href=\"https:\/\/razorpay.com\/blog\/best-payment-gateway-pricing-saas-india-tco-guide\/\">payment gateway pricing for SaaS businesses in India<\/a>.<\/p>\n<h3>International SaaS Billing &#8211; What the Pricing Page Does Not Tell You<\/h3>\n<p>International card decline rates are a known problem, driven by cards failing Indian 3D Secure and 2FA. International card transactions typically achieve only 70-80% success rates. Your options include a dedicated international gateway with higher MDR but better authorisation, versus domestic-first routing. See <a href=\"https:\/\/razorpay.com\/blog\/how-to-receive-international-bank-transfers-in-india\">how to receive international bank transfers in India<\/a> and what export payments are.<\/p>\n<blockquote><p><strong>DID YOU KNOW:<\/strong> India&#8217;s digital payment value grew 30% in a single year to Rs 299.9 trillion from FY24 to FY25, and volumes are projected to reach 617.3 billion transactions by FY30.<\/p><\/blockquote>\n<h3>GST Invoicing for SaaS &#8211; A Compliance Cost Built Into Gateway Selection<\/h3>\n<p>SaaS businesses must issue GST-compliant invoices for every renewal. For export SaaS, the supply is zero-rated under GST, but FEMA compliance requires realisation within the mandated window.<\/p>\n<h2>Payment Gateway Pricing for BFSI &#8211; Banks, Insurance, Lending, and Investments<\/h2>\n<p>BFSI businesses use enterprise-negotiated flat pricing rather than the public rate card. The dominant cost driver is mandate management: NACH debit failure rates, UPI Autopay mandate costs, and per-debit fees on recurring collections.<\/p>\n<h3>Insurance Premium Collections<\/h3>\n<p>Insurance premium payments fall under a specific MCC that may carry preferential MDR rates. Renewal collection via UPI Autopay carries a mandate creation fee once and a per-debit fee monthly. See how a <a href=\"https:\/\/razorpay.com\/blog\/direct-debit-mandate\">direct debit mandate<\/a> works, and how Future Generali uses Razorpay Optimizer.<\/p>\n<h3>Lending and NACH Collections<\/h3>\n<p>NACH for loan EMI carries per-mandate setup and per-debit fees. UPI Autopay is replacing paper NACH for new loan originations below the mandate cap. The gateway must support bulk payout capability for loan disbursements alongside collection.<\/p>\n<h2>How Razorpay Structures Pricing Across Industries in India<\/h2>\n<p>Razorpay&#8217;s pricing is structured on a transparent model: a 2% platform fee for domestic transactions plus 18% GST, with zero setup fee and zero AMC. For UPI, where MDR is zero by law, the 2% is entirely a platform fee for gateway infrastructure. For merchants processing above Rs 5 lakh per month, custom pricing is available.<\/p>\n<h3>How Razorpay&#8217;s Industry-Specific Products Change the Cost Picture<\/h3>\n<table>\n<thead>\n<tr>\n<th>Industry<\/th>\n<th>Products That Address the Cost Problem<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Education<\/td>\n<td>Payment Pages, Smart Collect virtual accounts, and UPI Autopay for instalment mandates<\/td>\n<\/tr>\n<tr>\n<td>Healthcare<\/td>\n<td>Payment Links, Razorpay POS, and the Affordability Suite for high-ticket procedures<\/td>\n<\/tr>\n<tr>\n<td>E-Commerce\/D2C<\/td>\n<td>Magic Checkout reduces checkout drop-offs, and Route enables split settlements<\/td>\n<\/tr>\n<tr>\n<td>SaaS<\/td>\n<td>Subscriptions handles UPI Autopay, retry logic, and GST invoice generation<\/td>\n<\/tr>\n<tr>\n<td>BFSI\/Enterprise<\/td>\n<td>Optimizer enables payment orchestration with smart routing. See <a href=\"https:\/\/razorpay.com\/blog\/payment-orchestration-101-features-benefits-and-how-to-get-started\">payment orchestration 101<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 aria-level=\"6\">Razorpay&#8217;s 90-Day 0% Platform Fee Offer: How It Applies Across Industries<\/h3>\n<p>Every industry in this guide shares one common cost: the platform fee on domestic transactions. Razorpay eliminates that cost entirely for the first 90 days.<\/p>\n<p>New merchants activated on or after 1 July 2026 receive Rs 5,00,000 in Amount Credits automatically on KYC approval. No application, no promo code, no minimum transaction. These credits waive the standard 2% platform fee on all eligible domestic Payment Gateway transactions on UPI, debit cards, credit cards, net banking, and wallets \u2014 until the 90-day window or Rs 5 lakh cumulative GMV expires, whichever comes first.<\/p>\n<p><strong>What still applies:<\/strong> GST on statutory levies at prevailing rates, a one-time Rs 199 KYC processing fee plus applicable taxes, and standard pricing on prepaid cards, corporate credit cards, American Express, Diners Club, and all EMI-based methods.<\/p>\n<p><strong>After 90 days or Rs 5 lakh GMV:<\/strong> Standard 2% platform fee plus 18% GST applies automatically. Unused credits lapse with no carry-forward or extension. One redemption per PAN or bank account.<\/p>\n<h4 aria-level=\"6\">What the Offer Saves by Industry in the First 90 Days<\/h4>\n<p>The savings depend on your payment mix. Industries with high UPI volume save the most because the platform fee is the only cost on zero-MDR UPI transactions, and that fee is exactly what the offer waives.<\/p>\n<table>\n<thead>\n<tr>\n<th>Industry<\/th>\n<th>Typical 90-Day GMV (New Business)<\/th>\n<th>Platform Fees Waived (at 2%)<\/th>\n<th>What This Means<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>EdTech startup<\/td>\n<td>Rs 2-4 lakh (admission cycle)<\/td>\n<td>Rs 4,000-8,000<\/td>\n<td>One full admission cycle at zero gateway cost<\/td>\n<\/tr>\n<tr>\n<td>Small healthcare clinic<\/td>\n<td>Rs 3-5 lakh (OPD + diagnostics)<\/td>\n<td>Rs 6,000-10,000<\/td>\n<td>Three months of patient collections fee-free<\/td>\n<\/tr>\n<tr>\n<td>D2C brand (pre-launch)<\/td>\n<td>Rs 1-3 lakh (soft launch)<\/td>\n<td>Rs 2,000-6,000<\/td>\n<td>Entire soft launch and first cohort at zero cost<\/td>\n<\/tr>\n<tr>\n<td>SaaS startup<\/td>\n<td>Rs 1-5 lakh (first subscribers)<\/td>\n<td>Rs 2,000-10,000<\/td>\n<td>Validate pricing and billing logic without fees distorting unit economics<\/td>\n<\/tr>\n<tr>\n<td>Kirana \/ SME<\/td>\n<td>Rs 50K-2 lakh<\/td>\n<td>Rs 1,000-4,000<\/td>\n<td>UPI collections completely free, including the platform fee<\/td>\n<\/tr>\n<tr>\n<td>NGO<\/td>\n<td>Rs 1-3 lakh (campaign cycle)<\/td>\n<td>Rs 2,000-6,000<\/td>\n<td>Donor rupees go entirely to the cause during the campaign window<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h4 aria-level=\"6\">Why the Offer Matters More for New Businesses Than a Lower MDR<\/h4>\n<p>A new business choosing between a gateway at 1.8% with a Rs 5,000 AMC versus Razorpay at 2% with zero AMC and the 90-day offer would pay the following in the first year:<\/p>\n<table>\n<thead>\n<tr>\n<th><\/th>\n<th>Gateway at 1.8% + Rs 5,000 AMC<\/th>\n<th>Razorpay (0% for 90 days, then 2%, zero AMC)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Months 1-3 (Rs 3L GMV)<\/td>\n<td>Rs 5,400 MDR + Rs 1,250 AMC = Rs 6,650<\/td>\n<td>Rs 0 platform fee<\/td>\n<\/tr>\n<tr>\n<td>Months 4-12 (Rs 7L GMV)<\/td>\n<td>Rs 12,600 MDR + Rs 3,750 AMC = Rs 16,350<\/td>\n<td>Rs 14,000 platform fee<\/td>\n<\/tr>\n<tr>\n<td><strong>Year 1 total (before GST)<\/strong><\/td>\n<td><strong>Rs 23,000<\/strong><\/td>\n<td><strong>Rs 14,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The gateway with the lower headline MDR costs Rs 9,000 more in year one. The 90-day offer plus zero AMC inverts the comparison completely.<\/p>\n<h4 aria-level=\"6\">How to Activate<\/h4>\n<p>There is no activation step. Sign up, complete KYC, receive account activation on or after 1 July 2026, and Rs 5,00,000 in Amount Credits appear in the dashboard. Domestic transactions process at zero platform fee until the cap or window expires.<\/p>\n<h3>What &#8220;Industry-Leading Success Rates&#8221; Means in Real Rupees<\/h3>\n<p>Razorpay&#8217;s payment success rates of 90-95%*, against an industry average of around 85-88%, mean more revenue realised at the same GMV. At Rs 10 lakh\/month attempted GMV, an 8-percentage-point gap is roughly Rs 80,000\/month in revenue realised. Smart Routing selects the highest-performing bank terminal in real time. See <a href=\"https:\/\/razorpay.com\/blog\/upi-success-rate-boosters\">UPI success rate boosters<\/a>.<\/p>\n<p>Payment success rates are based on Razorpay&#8217;s platform average and may vary depending on payment method, issuing bank, transaction value, customer device, and network conditions<\/p>\n<h2>Payment Gateway Pricing for Traditional SMEs and Offline-First Businesses<\/h2>\n<p>Traditional SMEs, kirana stores, and service businesses pay effectively zero gateway cost on UPI because UPI P2M carries no MDR. The real costs are infrastructure and the choice between a static QR versus a dynamic QR.<\/p>\n<h3>QR Codes vs Payment Links vs POS Terminals &#8211; What Each Costs<\/h3>\n<table>\n<thead>\n<tr>\n<th>Tool<\/th>\n<th>Setup Cost<\/th>\n<th>Per-Transaction Cost<\/th>\n<th>Best For<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Static QR (UPI collect)<\/td>\n<td>Rs 0<\/td>\n<td>Rs 0 MDR (platform fee may apply)<\/td>\n<td>Fixed-price cash replacement<\/td>\n<\/tr>\n<tr>\n<td>Dynamic QR<\/td>\n<td>Rs 0<\/td>\n<td>~2% platform fee<\/td>\n<td>Order-linked reconciliation<\/td>\n<\/tr>\n<tr>\n<td>Payment Links<\/td>\n<td>Rs 0<\/td>\n<td>Standard gateway MDR<\/td>\n<td>Freelancers, service invoicing<\/td>\n<\/tr>\n<tr>\n<td>POS Terminal<\/td>\n<td>Hardware cost<\/td>\n<td>Card MDR (0.4% debit, ~2% credit)<\/td>\n<td>High-ticket offline retail<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>86% of person-to-merchant UPI transactions in FY2026 were below Rs 500. See the top merchant pain points solved by Razorpay QR stack and <a href=\"https:\/\/razorpay.com\/blog\/what-is-mpos\">what is mPOS<\/a>.<\/p>\n<h3>Working Capital and the Instant Settlement Trade-Off<\/h3>\n<p>The standard settlement cycle is T+1 or T+2. Instant Settlements are an add-on at a premium. For cash-flow-constrained kirana stores, Instant Settlements can replace expensive working capital credit at a lower effective cost.<\/p>\n<blockquote><p><strong>PRO-TIP:<\/strong> For businesses with an average order value below Rs 2,000 and a UPI-dominant base, confirm that no platform fee is layered on zero-MDR UPI transactions. This is the most common fee leakage point for small merchants.<\/p><\/blockquote>\n<h2>Industry Gateway Pricing Comparison Table &#8211; India 2026<\/h2>\n<p>Estimated pricing patterns by industry (blended rates are directional estimates, not quotes):<\/p>\n<table>\n<thead>\n<tr>\n<th>Industry<\/th>\n<th>Typical Payment Mix<\/th>\n<th>Headline MDR Range<\/th>\n<th>Blended Rate Estimate<\/th>\n<th>Key Cost Driver<\/th>\n<th>What to Optimise<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Education \/ EdTech<\/td>\n<td>UPI-heavy, NEFT bulk, some EMI<\/td>\n<td>0-2% + platform fee<\/td>\n<td>2.0-2.4%<\/td>\n<td>UPI Autopay mandates<\/td>\n<td>Virtual accounts + reconciliation<\/td>\n<\/tr>\n<tr>\n<td>Healthcare<\/td>\n<td>Mixed UPI\/card, EMI<\/td>\n<td>2-2.5%<\/td>\n<td>2.1-2.8%<\/td>\n<td>High-ticket EMI, TPA routing<\/td>\n<td>Affordability suite + POS<\/td>\n<\/tr>\n<tr>\n<td>E-Commerce \/ D2C<\/td>\n<td>UPI dominant, card + EMI<\/td>\n<td>2%<\/td>\n<td>2.2-2.6%<\/td>\n<td>Checkout success rate<\/td>\n<td>Checkout conversion, routing<\/td>\n<\/tr>\n<tr>\n<td>SaaS (domestic)<\/td>\n<td>UPI Autopay, cards<\/td>\n<td>2% + add-on<\/td>\n<td>2.1-2.4%<\/td>\n<td>Renewal failure<\/td>\n<td>Subscription recovery<\/td>\n<\/tr>\n<tr>\n<td>SaaS (international)<\/td>\n<td>International cards, wire<\/td>\n<td>3-3.5% + forex<\/td>\n<td>3.5-5%+<\/td>\n<td>Card decline rates<\/td>\n<td>Dedicated international PG<\/td>\n<\/tr>\n<tr>\n<td>BFSI \/ Lending<\/td>\n<td>NACH, UPI Autopay<\/td>\n<td>Custom \/ flat fee<\/td>\n<td>Custom<\/td>\n<td>Mandate failure rate<\/td>\n<td>Enterprise plan<\/td>\n<\/tr>\n<tr>\n<td>NGOs \/ Government<\/td>\n<td>UPI, netbanking, NEFT<\/td>\n<td>0-2% + platform<\/td>\n<td>2%<\/td>\n<td>Reconciliation, 80G<\/td>\n<td>Custom pricing<\/td>\n<\/tr>\n<tr>\n<td>Traditional SME<\/td>\n<td>UPI dominant<\/td>\n<td>0% MDR<\/td>\n<td>~0-2%<\/td>\n<td>Instant settlement<\/td>\n<td>Dynamic QR + settlement<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Frequently Asked Questions<\/h2>\n<h3><strong>Does Razorpay&#8217;s 90-day 0% platform fee offer apply to all industries?<\/strong><\/h3>\n<p>Yes. The offer applies to all new merchants activated on or after 1 July 2026, regardless of industry. It waives the standard 2% platform fee on domestic Payment Gateway transactions for 90 days or until Rs 5 lakh cumulative GMV, whichever comes first. Rs 5,00,000 in Amount Credits auto-apply on KYC approval with no action needed. GST, the Rs 199 KYC fee, and standard rates on prepaid cards, corporate credit cards, AMEX, Diners, and EMI methods still apply. One redemption per PAN or bank account.<\/p>\n<h3>What is the difference between MDR, TDR, and platform fee in Indian payment gateways?<\/h3>\n<p>MDR is the fee paid to acquiring banks and card networks, regulated by the RBI for certain modes. TDR is the all-in rate an aggregator charges, bundling MDR and their margin. A platform fee covers gateway infrastructure and is used to charge merchants on zero-MDR UPI transactions.<\/p>\n<h3>Is UPI really free for Indian merchants in 2026?<\/h3>\n<p>Bank-level UPI MDR is zero for merchant transactions. However, aggregators typically charge a platform fee of around 2%. Parliament has also <a href=\"https:\/\/www.business-standard.com\/finance\/news\/upi-to-remain-free-for-users-mdr-may-apply-to-large-merchants-later-126080801212_1.html\" rel=\"nofollow noopener\" target=\"_blank\">passed an enabling law that could allow MDR for large merchants later<\/a>, though no framework is live.<\/p>\n<h3>Does my RBI Merchant Category Code (MCC) affect gateway pricing?<\/h3>\n<p>Yes, directly. MCC codes influence what MDR rate applies for certain card transactions, with some categories carrying lower regulated rates. MCC also affects risk categorisation by acquiring banks. If your MCC is incorrectly assigned, you may be paying a higher rate than required.<\/p>\n<h3>How does payment gateway pricing work for NGOs accepting donations in India?<\/h3>\n<p>NGOs accepting UPI donations pay the standard platform fee of around 2% unless they negotiate a custom rate. FCRA-registered NGOs need an aggregator supporting compliant foreign contribution routing. Volume-based pricing is available for NGOs processing above Rs 5 lakh monthly, with rates becoming increasingly negotiable at higher volumes.<\/p>\n<h3>What is the real cost of a payment gateway for a small healthcare clinic in India?<\/h3>\n<p>For an OPD clinic with mostly UPI and occasional card payments, the blended effective rate is typically 2.0-2.4% plus 18% GST. On Rs 2 lakh monthly collections, that is roughly Rs 4,700-5,700\/month including GST. The bigger cost driver is reconciliation overhead.<\/p>\n<h3>How should I compare payment gateway pricing for my SaaS startup billing Indian and international customers?<\/h3>\n<p>Calculate your blended rate separately for domestic and international revenue. Domestic runs at around 2% plus GST; international at 3-3.5% plus GST plus forex markup. Strong subscription retry logic reduces involuntary churn, which is a higher cost than the MDR difference.<\/p>\n<h3>What payment gateway charges should an e-commerce D2C brand expect during festive sale periods?<\/h3>\n<p>Your standard platform rate applies, as pricing does not change for seasonal spikes. However, higher festive volume moves you into a tier that qualifies for custom pricing. The more important question is uptime and success rate: a failure during a flash sale costs the full order value.<br \/>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the difference between MDR, TDR, and platform fee in Indian payment gateways?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"MDR (Merchant Discount Rate) is the fee paid to acquiring banks and card networks, regulated by the RBI for certain modes. TDR (Transaction Discount Rate) is the all-in rate an aggregator charges, bundling MDR and their margin. A platform fee covers gateway infrastructure and is used to charge merchants on zero-MDR UPI transactions. They are three layers of the same cost stack.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is UPI really free for Indian merchants in 2026?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Bank-level UPI MDR is zero for merchant transactions. However, aggregators typically charge a platform fee of around 2% for infrastructure and services. Parliament has also passed the Taxation and Other Laws (Amendment) Bill, 2026, an enabling law that could allow MDR for large merchants later, though no MDR framework is live as of the publication date. UPI is effectively free at the bank level, not necessarily at the aggregator level.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Does my RBI Merchant Category Code (MCC) affect gateway pricing?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes, directly. MCC codes influence what MDR rate applies for certain card network transactions, with some categories carrying lower regulated rates on debit cards. MCC also affects risk categorisation by acquiring banks and eligibility for specific RBI payment schemes. If your MCC is incorrectly assigned, you may be paying a higher rate than required.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How does payment gateway pricing work for NGOs accepting donations in India?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"NGOs accepting UPI donations pay the standard platform fee of around 2% unless they negotiate a custom institutional rate. FCRA-registered NGOs receiving international donations need an aggregator supporting RBI-compliant foreign contribution routing. Gateways that auto-generate 80G-compliant receipts save significant operational overhead. Volume-based pricing is available for NGOs processing above Rs 5 lakh monthly, with rates becoming increasingly negotiable at higher volumes.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the real cost of a payment gateway for a small healthcare clinic in India?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"For an OPD clinic with mostly UPI and occasional card payments, the blended effective rate is typically 2.0-2.4% plus 18% GST. On Rs 2 lakh monthly collections, that is roughly Rs 4,700-5,700 per month including GST. The bigger cost driver is the operational overhead of reconciling patient payments to billing records, which automated reconciliation tools can reduce by several hours per week.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How should I compare payment gateway pricing for my SaaS startup billing Indian and international customers?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Calculate your blended rate separately for domestic and international revenue streams. Domestic UPI and card billing runs at around 2% plus GST. International card billing runs at 3-3.5% plus GST plus potential forex markup. Also factor in subscription add-on fees and your expected failed-renewal rate. Strong subscription retry logic reduces involuntary churn, which is almost always a higher cost than the MDR difference between providers.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What payment gateway charges should an e-commerce D2C brand expect during festive sale periods?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Your standard platform rate applies, as gateway pricing does not change for seasonal spikes. However, higher festive volume moves you into a GMV tier that qualifies for custom pricing negotiation. The more important cost question during sales events is uptime and success rate: a payment failure during a flash sale costs you the full order value, not just the MDR. Confirm your gateway's SLA for peak traffic before the sale begins.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two businesses sign up for a 2% payment gateway on the same day. One is a D2C clothing brand, the other an EdTech platform. Three months later, their actual cost per rupee collected differs by roughly 40 basis points. Neither founder can explain why. This is the quiet frustration of Indian payments. Founders discover deductions<\/p>\n","protected":false},"author":180,"featured_media":27775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[906],"tags":[],"class_list":{"0":"post-27771","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payment-gateway"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/27771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/180"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=27771"}],"version-history":[{"count":7,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/27771\/revisions"}],"predecessor-version":[{"id":27885,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/27771\/revisions\/27885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/27775"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=27771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=27771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=27771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}