There are many reasons on which the selection of a payment gateway depends upon. These include its popularity among people, payment success rates and the number of payment sources it supports.

Looking for a payment gateway that suits your pocket? Wondering how each one differs in terms of payment gateway charges? While it might look that the payment gateway charges are not really significant, or the difference among various payment gateways is not much, it stands out when looked through the lens of a bigger business establishment. In their case, a small change in the payment fees can significantly impact their profits.

Above all, it is the charges, including Merchant Discount Rate (MDR) and other associated payment fees, that become key in the decision to go for a specific payment gateway. Read on to know more about payment gateway charges and how to choose the right payment gateway based on the online payment charges applied.

MDR is the charge by a payment service provider for an online payment made via different online payment methods. While this amount is typically paid by the merchants, in many cases, the payment gateway asks for an additional amount from the customer to cover the MDR.

Understanding Payment Gateway Charges

Payment gateway charges are the cost incurred by a business to facilitate online payment via the chosen payment gateway on the website or app. The payment gateway charges are determined as a percentage of an online payment amount and depend upon the type of online payment methods used by the customer.

A payment processing gateways provide you with much more flexibility and reach than the traditional modes of payment PoS (point of sale). It enables your business to better manage all payments with options for instant refunds, real-time bank settlements as well as efficient operations.

Key Factors Impacting The Online Payment Charges

Some of the key factors that impact online payment charges include:

  1. Interchange rates – are charges for credit card payments incurred by issuing companies such as VISA or MasterCard on every online payment you make from your bank. This rate includes the online payment handling costs incurred by the bank and investments done to reduce fraudulent transactions. With the rise in the number of online payments done by credit cards in India, it is important to be aware of the interchange rates and how they are calculated based on the type of card and chosen mode of payment.
  2. Merchant fees – are charged if you want to accept credit card payments on your website or app. It is the payment fees charged for interlinking the credit card network to your merchant account. The merchant account allows you to accept online payments done via credit card. In contrast, the merchant account provider deposits the amounts received through credit card payment on your website or app into your account at regular intervals.  
  3. Payment safety – charges are applied depending upon the level of safety required over each payment and its mode. For instance, payment done physically via a credit card at a store attracts lesser hassle compared to payment by credit card online. Therefore, payment gateway charges are directly dependent on the safety aspect of a transaction and its mode.

Various Components of Payment Gateway Charges

Payment gateway charges or fees include various components required for efficient online payment processing. These include – 

  • Payment gateway setup charges
  • Annual maintenance charges
  • Integration charges
  • Merchant Discount Rate (MDR)

Know The Payment Gateway Charges

It is important to know about all the payment gateway charges involved before you seal a provider, as it has a direct impact on your business revenues. Some of the important parameters to keep in mind include;

  • Type of transactions conducted or expected on your website or app
  • The frequency of various transactions
  • Revenue generated or expected to be generated by the business

Keeping these parameters in mind, you should look at other aspects involved in the online payment gateway, such as the number of payment sources supported, payment safety, success rate, and other additional features provided. 

Remember, one should not make a decision only based on the charges by a payment processing gateways but look at the entire landscape of things offered to take the final call. 

Want to check the PayU Payment Gateway Charges? Click here

“Try PayU Payment Gateway to Grow more. Do more. Be more.”

Some Features of The PayU Payment Gateway Are:

  • Easy Integration with APIs, feather-light SDKs, plugins, and play partnerships.
  • Industry best success rates through strategic partnerships.
  • Offers 150+ payment modes across Credit Cards, Debit Cards, Net Banking, EMIs, BNPL, and UPI.
  • Simple and transparent pricing that suits your business.
  • 24*7 support at each step.
  • Accept international cards in a single integration with our dynamic currency converter to show prices in local currency.
  • Instant Refunds are disbursed within 5 minutes of the refund request.


Why do payment gateway charges have to be paid?

Payment gateway charges or payment fees help the service providers cover various costs such as software maintenance, payment security, and other operational costs.

How to identify the best payment gateway for my online business?

You should start by comparing the features offered by various payment gateways. Look at features that best suit your business needs. Before making your final decision, always look at all aspects of the payment gateway.

Which is the cheapest payment gateway in India?

Trusted by more than 5 lakh+ businesses, the PayU Payment Gateway provides you with the platform to do more with online payments. PayU Payment Gateway is ideal for every sized business with simple and transparent pricing and easy integration. Although pricing remains an important parameter for an online payment gateway, consider various payment gateway features during selection.

How safe and secure is PayU Payment Gateway?

PayU Payment Gateway offers the highest success rates and ensures a seamless and secure checkout experience. Powered by anti-fraud technology that detects and prevents fraudulent transactions, PayU Payment Gateway is PCI-DSS compliant to ensure the safety and security of each online payment done.