# Best payment gateway with lowest fees India 2026 · 6 Jul
> What ChatGPT, Gemini, and Google AI Mode said about: Best payment gateway with lowest fees India 2026. Brands named, sources cited, sentiment per engine on…

Canonical URL: https://cite.solutions/state-of-ai-india/payment-gateways/reports/2026-07-06/p/6
Source: Cite Solutions (cite.solutions)
Published: 2026-07-06
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[← B2B Payments & Business Banking · 6 July 2026](/state-of-ai-india/payment-gateways/reports/2026-07-06)One prompt · three engines

Prompt 06 · 6 July 2026

# Best payment gateway with lowest fees India 2026

Three engines were asked the exact prompt above on 6 July 2026. Below is the verbatim answer each one gave, the brands it named, and the URLs it cited.

ChatGPTgpt-5-5

Answered 6 July 2026

If your priority is \*\*the lowest transaction fees\*\* while maintaining good reliability in India in 2026, these are the strongest options: | Payment Gateway | Typical Domestic Fee | Best For | Notes | |---|---:|---|---| | Cashfree Payments | \*\*1.6% promotional\*\* (eligible new merchants), otherwise \~1.95% | Startups, SMEs | Frequently offers one of the lowest published rates for new merchants. | | Razorpay | Around \*\*2%\*\* | Most businesses | Excellent checkout success rate, APIs, subscriptions, and integrations. | | PayU | Around \*\*2%\*\* | Medium to large businesses | Good support for cards, UPI, EMI, and recurring payments. | | PhonePe Payment Gateway | Custom pricing | UPI-heavy businesses | Strong UPI ecosystem and growing merchant tools. | | CCAvenue | Around \*\*2–3%\*\* | Businesses needing many payment methods | Supports a large number of payment options and international acceptance. | ### Which one offers the lowest fees? - \*\*Lowest advertised rate:\*\* Cashfree Payments at \*\*1.6%\*\* for eligible new merchants under its promotional pricing (subject to terms and time limits). - \*\*Negotiated pricing:\*\* Once your monthly payment volume reaches several lakhs of rupees or more, many gateways will negotiate rates. Businesses processing ₹5 lakh–₹1 crore+ per month can often obtain rates below the standard pricing. ### My recommendations by use case - \*\*Lowest fees:\*\* Cashfree Payments - \*\*Best overall balance of features and reliability:\*\* Razorpay - \*\*Enterprise or high-volume merchants:\*\* PayU or negotiate with both Razorpay and Cashfree - \*\*UPI-first businesses:\*\* PhonePe Payment Gateway A final point: don't choose solely based on the percentage fee. A gateway with a slightly higher fee but a better payment success rate can result in more completed transactions and higher overall revenue. If you tell me: - your business type (e-commerce, SaaS, education, services, etc.), - expected monthly transaction volume, and - whether you need international payments or subscriptions, I can recommend the most cost-effective gateway for your specific case.

Brands named

[Cashfree](https://cashfree.com "Visit Cashfree")[Razorpay](https://razorpay.com "Visit Razorpay")[PayU](https://payu.in "Visit PayU")[PhonePe Business](https://phonepe.com "Visit PhonePe Business")

Sources cited · 6

* [Payment Gateway Charges | Lowest Pricing & UPI ...cashfree.com/payment-gateway-charges](https://www.cashfree.com/payment-gateway-charges/?utm%5Fsource=chatgpt.com)
* [Low Cost Payment Gateway in Indiarazorpay.com/blog/low-cost-payment-gateway-in-india-the-complete-decision-guide](https://razorpay.com/blog/low-cost-payment-gateway-in-india-the-complete-decision-guide/?utm%5Fsource=chatgpt.com)
* [Best Payment Gateways In India – Comparison & Reviewsprofitbooks.net/best-payment-gateways-india](https://profitbooks.net/best-payment-gateways-india/?utm%5Fsource=chatgpt.com)
* [Top Indian Payment Gateway Providers 2026linkedin.com/posts/ketan-sawant-09950384\_top-10-payment-gateway-providers-in-india-activity-7418579858433204224-rElI](https://www.linkedin.com/posts/ketan-sawant-09950384%5Ftop-10-payment-gateway-providers-in-india-activity-7418579858433204224-rElI?utm%5Fsource=chatgpt.com)
* [PhonePe launches AI-powered SmartPages to help merchants create payment pages quicklytimesofindia.indiatimes.com/technology/tech-news/phonepe-launches-ai-powered-smartpages-to-help-merchants-create-payment-pages-quickly/articleshow/131638694.cms](https://timesofindia.indiatimes.com/technology/tech-news/phonepe-launches-ai-powered-smartpages-to-help-merchants-create-payment-pages-quickly/articleshow/131638694.cms?utm%5Fsource=chatgpt.com)
* [Payment Gateway Pricing Compared: High ROI Options in ...dev.to/techiestark/payment-gateway-pricing-compared-high-roi-options-in-india-in-2026-39h6](https://dev.to/techiestark/payment-gateway-pricing-compared-high-roi-options-in-india-in-2026-39h6/?utm%5Fsource=chatgpt.com)

Geminigemini-3-flash

Answered 6 July 2026

In 2026, finding the "cheapest" payment gateway in India requires looking beyond the headline \*\*TDR (Transaction Discount Rate)\*\*. While a gateway might promise a low percentage, hidden Annual Maintenance Charges (AMC), setup fees, and low transaction success rates can cost you more in the long run. The market splits into two major categories: \*\*The Discounters\*\* (lowest base rates) and \*\*The Performers\*\* (slightly higher rates, but zero fixed costs and higher success rates). The baseline comparison for the best payment gateways in India with the lowest overall fees in 2026 includes: --- ### 1\. PhonePe Payment Gateway (Best for Lowest Fixed Costs) PhonePe has aggressively disrupted the merchant space by leveraging its massive UPI ecosystem. \* \*\*Domestic TDR:\*\* \~1.99% for cards and net banking. \* \*\*UPI & RuPay Debit:\*\* 0% (Standard platform/tech fees may apply depending on volume). \* \*\*Setup Fee / AMC:\*\* \*\*₹0\*\* (No hidden maintenance fees). \* \*\*Best For:\*\* Small to medium businesses that want zero upfront financial commitment and a UPI-first checkout flow. ### 2\. Cashfree Payments (Lowest Headline Rates for New Merchants) Cashfree is heavily favored by D2C brands due to its competitive pricing models and fast payout infrastructure. \* \*\*Domestic TDR:\*\* Starts at \*\*1.95%\*\* (They frequently run limited-time introductory offers as low as 1.6% for the first year). \* \*\*International TDR:\*\* \~2.99% \* \*\*Setup Fee / AMC:\*\* ₹0 setup fee, but watch out for an AMC (up to ₹4,999/year) depending on the specific plan you scale into. \* \*\*Best For:\*\* High-volume D2C brands and e-commerce stores looking for the lowest baseline transaction fee. ### 3\. Razorpay (Best Overall ROI & Hidden Savings) While Razorpay charges a standard "premium" rate, it remains the market leader because it features \*\*zero fixed costs\*\* and the highest transaction success rates in India via automated smart routing. \* \*\*Domestic TDR:\*\* \*\*2.0% + 18% GST\*\* (Applies to cards, net banking, and wallets). \* \*\*International TDR:\*\* 3.0% \* \*\*Setup Fee / AMC:\*\* \*\*₹0\*\* (Strictly pay-as-you-go). \* \*\*Best For:\*\* SaaS, startups, and rapidly scaling businesses. A 5% higher payment success rate on Razorpay usually saves more money than a 0.2% cheaper transaction fee on a budget gateway. ### 4\. Paykun / Easebuzz (Best Value Budget Alternatives) For niche businesses or those wanting alternative fee setups, these platforms offer highly aggressive pricing. \* \*\*Domestic TDR:\*\* Standard rates hover around \*\*1.5% to 1.75%\*\* for domestic transactions. \* \*\*Setup Fee / AMC:\*\* Generally ₹0\. \* \*\*Best For:\*\* Small bootstrapped projects or service providers trying to trim every fraction of a percentage point. --- ### Summary Table | Payment Gateway | Domestic TDR (Base) | Setup Fee | Annual Maintenance (AMC) | Best Feature | |:--- |:--- |:--- |:--- |:--- | | \*\*PhonePe PG\*\* | \~1.99% (UPI is lowest) | Free | Free | Seamless UPI integration | | \*\*Cashfree\*\* | 1.95% | Free | Varies (Up to ₹4,999) | Instant refunds & low base rate | | \*\*Razorpay\*\* | 2.0% | Free | Free | Highest success rates & API tools | | \*\*Paykun\*\* | 1.75% | Free | Free | Flat low transaction fee | ### 💡 The 2026 Practical Advice If your monthly Gross Merchandise Value (GMV) is \*\*under ₹2 Lakhs\*\*, choose a gateway with \*\*₹0 AMC\*\* (like Razorpay or PhonePe). Paying a lower 1.7% fee but getting slapped with a ₹5,000 annual maintenance fee will actually make your effective cost \*higher\* than a flat 2% fee. Once your business crosses \*\*₹5 Lakhs/month in volume\*\*, bypass the standard rate cards entirely and contact the sales team of any of these platforms to negotiate a customized, discounted enterprise rate. What type of platform or website are you integrating this into? If you share your expected monthly sales volume, I can point out which one will be mathematically cheaper for you.

Brands named

[Razorpay](https://razorpay.com "Visit Razorpay")[PhonePe Business](https://phonepe.com "Visit PhonePe Business")[Cashfree](https://cashfree.com "Visit Cashfree")

Sources cited · 8

* [cheapest payment gateway for a Shopify store in India in 2026? Looking to Integrate a new PG ASAP : r/ShopifyeCommerce - Redditreddit.com/r/ShopifyeCommerce/comments/1ug01g1/cheapest\_payment\_gateway\_for\_a\_shopify\_store\_in](https://www.reddit.com/r/ShopifyeCommerce/comments/1ug01g1/cheapest%5Fpayment%5Fgateway%5Ffor%5Fa%5Fshopify%5Fstore%5Fin/#:~:text=way%20to%20think%20about%20Shopify,6d%20ago)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=%E2%82%B97%2C500%20annual%20maintenance%20charge,Beyond%20pricing%2C%20realised%20revenue%20matters.)
* [Best payment gateways for small businesses in India (2026) - Wisewise.com/in/blog/best-small-business-payment-gateway](https://wise.com/in/blog/best-small-business-payment-gateway#:~:text=It%20is%20closely%20integrated%20with,hidden%20charges%2C%20with%20T%26Cs%20applicable.)
* [Payment Gateway Charges | Lowest Pricing & UPI Payment Gateway Fees in India | Cashfreecashfree.com/payment-gateway-charges](https://www.cashfree.com/payment-gateway-charges/#:~:text=charges%20in%20India,2.99%25%20on%20international%20card%20transactions)
* [Best Payment Gateways in India for Dropshipping (2026) - Qikinkqikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/)
* [5 Best Payment Gateways in India in 2026 - Statrysstatrys.com/blog/best-payment-gateways-in-india](https://statrys.com/blog/best-payment-gateways-in-india#:~:text=Cashfree%20Payments%20Key%20Usage%20Fees,UPI%20on%20credit%20cards%3A%202.15%25)
* [Best ROI Payment Gateway in India | Full 2026 PG Pricing Guide - Refrensrefrens.com/grow/best-payment-gateway-roi-india-2026](https://www.refrens.com/grow/best-payment-gateway-roi-india-2026/#:~:text=Razorpay%20has%20positioned%20Optimizer%20as,and%20Zero%20Annual%20Maintenance%20Charges)
* [Payment Gateway Pricing Compared: High ROI Options in India in 2026 - DEV Communitydev.to/techiestark/payment-gateway-pricing-compared-high-roi-options-in-india-in-2026-39h6](https://dev.to/techiestark/payment-gateway-pricing-compared-high-roi-options-in-india-in-2026-39h6/#:~:text=5%20lakh%20per%20month%2C%20custom,seen%20teams%20discover%20an%20Rs.)

AI ModeGoogle AI Mode

Answered 6 July 2026

Based on available data for 2026, the best payment gateways in India with the lowest fees depend on transaction volume and type (UPI vs. Cards), with \*\*Cashfree\*\* and \*\*Razorpay\*\* offering highly competitive pricing. Top Low-Fee Payment Gateways (India 2026) - \*\*:\*\* - \*\*Special Offer:\*\* New merchants signing up by July 31, 2026, can secure a reduced rate of \*\*1.6%\*\* on domestic transactions (cards, UPI, net banking). - \*\*Standard Rate:\*\* Typically 1.95%. - \*\*Highlights:\*\* Known for instant refunds and a vast array of payment methods. - \*\*:\*\* - \*\*Fees:\*\* Standard TDR is generally 2% (plus GST) for Indian credit/debit cards, net banking, and wallets. - \*\*UPI:\*\* Often cheaper or zero-rated for low-value transactions, making it excellent for high-volume, low-value businesses. - \*\*Highlights:\*\* Best for recurring billing (UPI AutoPay/e-NACH) and ease of integration. - \*\*Paytm Payment Gateway:\*\* - \*\*Fees:\*\* Competitive for high-volume merchants, often offering customized pricing for larger enterprises. - \*\*Highlights:\*\* Strong user base for Paytm Wallet and UPI, ensuring high success rates. Key Factors for 2026 1\. \*\*UPI Dominance:\*\* UPI AutoPay is the lowest-cost recurring billing rail for payments under ₹15,000\. 2\. \*\*Special Offers:\*\* Gateways like Cashfree are running special 10th-anniversary pricing (1.6%) for new sign-ups, which is among the lowest in the market. 3\. \*\*TDR vs. Reliability:\*\* The cheapest provider is not always the best; transaction success rates and instant refund capabilities (supported by Cashfree ) are crucial for reducing costs associated with customer churn. \*Note: All fees are generally subject to 18% GST.\* To provide a more precise recommendation, could you tell me: - Your \*\*approximate monthly transaction volume\*\*? - Do you mostly deal with \*\*UPI or credit/debit cards\*\*? - Are you looking for \*\*recurring subscriptions or one-time payments\*\*?

Brands named

[Cashfree](https://cashfree.com "Visit Cashfree")[Razorpay](https://razorpay.com "Visit Razorpay")[Paytm Business](https://paytm.com "Visit Paytm Business")

Sources cited · 2

* [Cashfree Paymentscashfree.com/payment-gateway-charges](https://www.cashfree.com/payment-gateway-charges/)
* [Razorpayrazorpay.com/blog/cheapest-payment-gateway-for-recurring-billing-e-nach-upi-autopay-and-subscription](https://razorpay.com/blog/cheapest-payment-gateway-for-recurring-billing-e-nach-upi-autopay-and-subscription/)

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