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Payment gateway for a website in India: real fees, approval rules and which one to pick (2026)
Razorpay, Cashfree, PayU, PhonePe PG, CCAvenue and Stripe compared on today's published fees, UPI charges, KYC, the website pages you need for approval, and exports.
The short answer: if you need a payment gateway for a website in India, Razorpay, Cashfree, PayU, PhonePe PG and CCAvenue all charge about 2% plus 18% GST on domestic payments, with no setup fee. The headline rate barely separates them. What does is approval, settlement speed, international payments and the small print on offers.
Approval is where most people get stuck. One r/IndiaBusiness poster selling cosmetic perks for a Minecraft server wrote simply: "Razorpay and Cashfree rejected me." A developer on r/developersIndia said "no one is even giving me a payment gateway with Udyam or trade licence." Others in that thread said they were approved without a company. Both outcomes are normal, and the reasons are mostly predictable.
This guide uses fees we checked on each vendor's pricing page on 29 October 2026.
Payment gateway charges in India for a website, compared#
| Gateway | Domestic cards, UPI, netbanking | International cards | Setup and annual fees | Standard settlement |
|---|---|---|---|---|
| Razorpay | 2% (0% for the first 90 days on a current sign-up offer) | Up to 3% | None | T+2 working days |
| Cashfree | 1.95% (0% up to ₹20 lakh for new merchants, offer to 31 March 2027) | On request | None | T+1 or T+2 |
| PayU | 2% on Visa, Mastercard, netbanking, wallets; UPI priced by business type | 3% (also Amex, Diners, EMI) | None | T+2 |
| PhonePe PG | 1.99% standard, shown as free on a limited-period offer | Says same pricing structure | None | Not on pricing page |
| CCAvenue | 2% platform fee, including UPI | 3% (3.5% with multi-currency) | No setup; ₹1,200 + GST a year, waived in year one | Not on pricing page |
| Stripe India | 2% on Indian Visa and Mastercard | 3%, plus 2% if currency conversion | None | Invite-only |
All rates are before 18% GST. Sources: Razorpay, Cashfree, PayU, PhonePe PG, CCAvenue and Stripe pricing pages.
Read offers carefully. Cashfree's free period excludes Amex, Diners and international cards, and its terms say GST is still deducted, calculated at the standard 1.95% rate. So "0%" costs you about 0.35% per payment. Offers also end, so plan your margins on the standard rate.
What 2% really costs#
Say a hypothetical block-print saree brand in Jaipur sells ₹3 lakh a month through its own website. At 2%, the gateway keeps ₹6,000, plus ₹1,080 GST: ₹7,080 a month, or about ₹85,000 a year. A 0.05% difference in rate is worth ₹150 a month at that size. Faster settlement or a higher payment success rate is worth far more.
Is there a free payment gateway in India?#
Not really. Razorpay's own pricing FAQ says "no genuinely free payment gateway exists in India." Every gateway earns from either a transaction fee, an annual charge, or both. "Free" means a time-limited or volume-limited offer.
If you want the cheapest setup for a small site, the realistic options are a sign-up offer (Cashfree, Razorpay or PhonePe PG today) or a gateway with no annual fee. Avoid plans with setup or annual charges until your volume justifies them.
UPI charges: zero MDR is changing#
Since January 2020, UPI and RuPay debit card payments have carried zero merchant discount rate (MDR) by law. That never made UPI free on a gateway. Razorpay states plainly that it charges a 2% "platform or technology fee" on standard UPI even though the bank MDR is zero. Most gateways do something similar.
The rules themselves are now changing. The Finance Ministry's FAQ of 15 September 2026 sets an MDR of 0.4% on person-to-merchant UPI payments above ₹2,000, capped at ₹300 from ₹75,000 upwards. Payments up to ₹2,000 stay free, and merchants cannot pass the charge on to customers. It was due on 15 October 2026, but on 13 October NPCI deferred it to "immediately post Diwali", with the date to be notified.
For a website owner, ask your gateway one question in writing: will the new UPI MDR be added on top of the platform fee, or absorbed into it?
The RBI payment aggregator rules, in plain words#
Razorpay, Cashfree and the others are payment aggregators (PAs). They collect money for you, hold it briefly and settle it to your bank. The RBI's Master Direction on Payment Aggregators of 15 September 2025 sets the rules. What matters to you:
- Your money sits in an escrow account with a scheduled bank, not in the gateway's own account. Settlement timelines must be written into your agreement.
- They must do KYC on you. That includes a background check, and they must keep watching that your transactions match your declared business. Selling something other than what you signed up for is the classic reason for a frozen account.
- Smaller merchants get a lighter route. If your annual turnover is up to ₹40 lakh (or export turnover up to ₹5 lakh), the PA can use a simpler check: verified PAN, a contact point verification and one officially valid ID document.
- Refunds go back to the original payment method.
- Exports run through a PA-CB (cross-border) licence, with a maximum of ₹25 lakh per transaction.
KYC documents and website pages you need before approval#
Have these ready before you apply. Cashfree's document checklist is a good reference.
- Everyone: PAN, bank proof (cancelled cheque or statement), and an ID of the signatory such as Aadhaar or passport.
- Proprietors: GST certificate, or a self-declaration if you are below the GST threshold.
- Companies and LLPs: certificate of incorporation, company PAN, board resolution, and director IDs. Use a current account in the business name.
The most common delay is a name mismatch, such as "Pvt Ltd" on one document and "Private Limited" on another.
Your website gets checked too. Razorpay runs "instant checks" on your website and policy pages during activation, and won't issue live API keys without them.
If you need help with the policy pages, read our guide to a privacy policy for a website in India. A half-built site with "lorem ipsum" text is the fastest way to a rejection.
International payments for exporters and SaaS#
This is where the gateways really differ.
- Razorpay charges up to 3% on international cards and offers a separate export account for bank transfers at 1%, according to its pricing page.
- PayU charges 3% on international transactions. CCAvenue charges 3%, or 3.5% if you show prices in the customer's currency.
- Stripe is still invite-only in India, focused on businesses expanding internationally. Indian card fees are 2%; cards from abroad are 3%, plus 2% for currency conversion.
- Merchant of record services such as Paddle (5% + 50¢ a transaction) sell on your behalf and handle foreign sales tax. They cost more, but suit a small SaaS team selling worldwide.
A common pattern for Indian SaaS is the one an r/developersIndia user suggested: "a dual pg setup of razorpay for india and Lemon Squeezy for international". If you export services, make sure your gateway gives you the documents your bank needs to close export entries. The RBI rules require PA-CBs to provide them.
Which payment gateway is best for your business#
- Small business or first online store: Razorpay or Cashfree. Quick onboarding, no annual fee and ready-made ecommerce plugins. If you are still choosing a platform, see Shopify vs WooCommerce.
- High UPI share, price-sensitive: compare PhonePe PG and Cashfree offers, then check the standard rate after the offer ends.
- Established business wanting many payment options or multi-currency display: CCAvenue or PayU.
- SaaS with Indian and global customers: an Indian gateway for India, plus Stripe (if invited) or a merchant of record for abroad.
- Exporter of services: a PA-CB provider with low-fee bank transfers, rather than card payments.
Budgeting for a full store? Our ecommerce website cost in India guide covers the rest, and website maintenance costs explains the running costs.
Common questions#
Which is the cheapest payment gateway in India?#
On standard published rates, Cashfree (1.95%) and PhonePe PG (1.99%) are a touch below Razorpay, PayU and CCAvenue (2%). Several are running free offers, but check exclusions, GST and the end date.
How do I get a payment gateway for my website in India?#
Finish the website and policy pages first, keep PAN, bank and ID documents ready, then sign up and complete KYC. One r/developersIndia user said Razorpay approved them in under a week without a registered company; complex or high-risk categories take longer.
Can I get a payment gateway without GST registration?#
Usually yes, if you are below the GST threshold. Most gateways accept a self-declaration instead of a GST certificate.
What are payment gateway charges for UPI?#
The bank MDR on UPI is zero for now, but gateways typically charge their normal platform fee, around 2%. After Diwali, a 0.4% MDR applies to merchant UPI payments above ₹2,000.
The short version#
Most Indian gateways charge around 2% plus GST, with no setup fee. Choose on approval, settlement speed, international support and offer terms, not on a 0.05% difference. Put your policy pages live before applying, use matching documents, and ask in writing how the new UPI MDR will be billed.
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