# Best payment gateway with lowest fees India 2026 · 7 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/2026-07-07/p/6
Source: Cite Solutions (cite.solutions)
Published: 2026-07-07
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[← B2B Payments & Business Banking · 7 July 2026](/state-of-ai-india/payment-gateways/reports/2026-07-07)One prompt · three engines

Prompt 06 · 7 July 2026

# Best payment gateway with lowest fees India 2026

Three engines were asked the exact prompt above on 7 July 2026. Below is the verbatim answer each one gave, the brands it named, and the URLs it cited.

ChatGPTgpt-5-5

Answered 7 July 2026

If your priority is \*\*the lowest payment gateway fees in India in 2026\*\*, the answer depends on your monthly transaction volume and whether you value payment success rates over the absolute lowest Transaction Discount Rate (TDR). | Payment Gateway | Typical domestic fee | Best for | Notes | |---|---:|---|---| | Cashfree Payments | \*\*1.6% promotional\*\* (eligible new merchants), otherwise around 1.95% | Startups & SMBs | One of the lowest published offers in 2026\. | | Razorpay | Around \*\*2.0%\*\* | Most businesses | Excellent APIs, strong checkout success rates, no setup fee for standard plans. | | PayU | Custom pricing | High-volume merchants | Often negotiates lower rates for larger businesses. | | PhonePe Payment Gateway | Custom pricing | Businesses with heavy UPI traffic | Strong UPI ecosystem and new merchant tools. | | CCAvenue | Custom (varies by plan) | International payments | Supports many payment options and currencies. | ### Lowest fees by business type - \*\*New startup (under ₹1 crore/month):\*\* Cashfree's 1.6% promotional pricing is currently among the cheapest publicly advertised offers. - \*\*Growing D2C or ecommerce brand:\*\* Razorpay is often worth the slightly higher fee because better payment success rates can increase completed orders enough to outweigh the extra TDR. - \*\*Enterprise (₹5 crore+/month):\*\* Negotiate. Large merchants commonly obtain rates below standard pricing from multiple providers. ### Recommendation - \*\*Cheapest overall:\*\* Cashfree Payments - \*\*Best value:\*\* Razorpay - \*\*Best for enterprise negotiations:\*\* PayU - \*\*Best for UPI-focused businesses:\*\* PhonePe Payment Gateway A difference of \*\*0.2–0.4% in fees\*\* is often less important than payment success rate, settlement speed, refunds, and support. A gateway with a higher authorization success rate can generate more revenue than a slightly cheaper competitor. If you tell me: 1\. your business type (SaaS, ecommerce, services, education, etc.), 2\. expected monthly payment volume, and 3\. whether you need international payments, I can recommend the most cost-effective gateway for your specific use 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 · 7

* [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)
* [7 Cheapest Payment Gateways in India for SaaS Startups ...salarybox.in/blog/7-cheapest-payment-gateways-in-india-for-saas-startups-in-2026](https://salarybox.in/blog/7-cheapest-payment-gateways-in-india-for-saas-startups-in-2026/?utm%5Fsource=chatgpt.com)
* [Payment Gateway Comparison India 2026 | Complete Guidetoucanpay.in/payment-gateway-comparison-india-2026](https://toucanpay.in/payment-gateway-comparison-india-2026/?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 7 July 2026

When hunting for the best payment gateway in India with the lowest fees, looking \*\*only\*\* at the percentage rate (Transaction Discount Rate or TDR) can be a trap. Hidden annual maintenance charges (AMC) and poor checkout success rates can quietly drain more money than a slightly higher fee. As of \*\*2026\*\*, standard UPI transactions remain at \*\*0%\*\* for merchants under RBI guidelines, but standard credit/debit card and net banking fees vary. --- ## The Best Low-Fee Payment Gateways in India ### 1\. Cashfree Payments (Best Overall for Low TDR) Cashfree is incredibly aggressive with its pricing and is widely considered one of the cheapest reliable options for growing businesses. \* \*\*Standard TDR:\*\* \*\*\~1.95%\*\* on domestic credit/debit cards, net banking, and wallets. \* \*\*UPI / RuPay Debit:\*\* \*\*0%\*\* \* \*\*International Cards:\*\* \~2.95% \* \*\*Setup / AMC:\*\* Free setup (though a standard annual contract fee may apply depending on the business tier). \* \*\*Why choose it:\*\* It has excellent automated refund features, high success rates, and is slightly cheaper on standard transactions than Razorpay. ### 2\. Easebuzz (Best for Budget-Conscious / High Volume) If you want to dip below the standard 2% industry benchmark, Easebuzz is a major contender. \* \*\*Standard TDR:\*\* Starts around \*\*1.5% to 1.7%\*\* (dependent on business model/plan). \* \*\*UPI / RuPay Debit:\*\* \*\*0%\*\* \* \*\*Setup / AMC:\*\* ₹0 setup, but check for any minor platform or maintenance fees during onboarding. \* \*\*Why choose it:\*\* Very popular among SaaS, subscription models, and cost-conscious D2C brands due to its lower base transaction fees. ### 3\. Razorpay (Best Value: Highest Success Rate, No AMC) Razorpay is the market leader. While its base rate isn't the absolute lowest on paper, its \*\*Zero AMC\*\* structure and superior success rates often make it the cheapest in \*Total Cost of Ownership\* (TCO). \* \*\*Standard TDR:\*\* \*\*2.0% + GST\*\* \* \*\*UPI / RuPay Debit:\*\* \*\*0%\*\* \* \*\*Setup & AMC:\*\* \*\*₹0\*\* (Completely free, no hidden annual maintenance charges). \* \*\*Why choose it:\*\* If a gateway with a 1.7% fee fails 10% of your checkouts, it costs you more than Razorpay’s 2% fee with a 95% success rate. It's the friendliest platform for developer integration and features. ### 4\. PayU India (Best for Mid-to-Large E-commerce) PayU is a robust, highly stable legacy player that competes directly with Razorpay. \* \*\*Standard TDR:\*\* \*\*2.0% + GST\*\* \* \*\*UPI / RuPay Debit:\*\* \*\*0%\*\* \* \*\*Setup / AMC:\*\* Free setup, AMC varies based on custom enterprise plans. \* \*\*Why choose it:\*\* Exceptional multi-currency support and localized checkout options ("Checkout for Bharat") if you are targeting Tier-2 and Tier-3 cities. --- ## Direct Fee Comparison Table | Payment Gateway | Standard Domestic TDR | Setup Fee | Annual Maintenance (AMC) | Best For | |:--- |:--- |:--- |:--- |:--- | | \*\*Easebuzz\*\* | \*\*1.5% – 1.7%\*\* | Free | Varies by plan | Absolute lowest baseline fees | | \*\*Cashfree\*\* | \*\*1.95%\*\* | Free | Varies (up to ₹4,999/yr for premium) | High-speed refunds & low card rates | | \*\*Razorpay\*\* | \*\*2.0%\*\* | Free | \*\*₹0 (Completely Free)\*\* | High success rates & seamless UI | | \*\*PayU\*\* | \*\*2.0%\*\* | Free | Free (Standard plan) | Localized checkouts & scaling brands | | \*\*Instamojo\*\* | \*\*2.0% + ₹3\*\* | Free | Free (Standard plan) | Micro-merchants & link-based selling | \*Note: All gateway transaction fees are subject to an additional \*\*18% GST\*\* on the fee amount, not the total transaction volume.\* --- ## 💡 Pro-Tips for Getting the Lowest Fee 1\. \*\*Leverage the ₹5 Lakh Threshold:\*\* Almost every major gateway (Razorpay, Cashfree, PayU) offers \*\*custom enterprise pricing\*\* if your business processes more than ₹5,000,000 a month. Don't accept the standard rate card; talk to their sales team to negotiate it down to 1.5%–1.7%. 2\. \*\*Push for UPI:\*\* Because UPI is 0%, steer your customers toward UPI apps via checkout design. If 70% of your volume happens over UPI, your average payment gateway cost drops drastically, regardless of the provider. Are you integrating this into a specific platform like Shopify or WooCommerce, or are you building a custom application?

Brands named

[Razorpay](https://razorpay.com "Visit Razorpay")[Cashfree](https://cashfree.com "Visit Cashfree")[PayU](https://payu.in "Visit PayU")[Instamojo](https://instamojo.com "Visit Instamojo")

Sources cited · 10

* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=When%20evaluating%20payment%20gateway%20pricing,which%20directly%20impact%20realised%20revenue)
* [Top 10+ Best Payment Gateways in India 2026 - Capsicum Mediaworkscapsicummediaworks.com/best-payment-gateways-in-india](https://capsicummediaworks.com/best-payment-gateways-in-india/#:~:text=What%20truly%20sets%20Cashfree%20apart,enjoying%20top-tier%20payment%20infrastructure.)
* [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=Here%20are%20the%20Cashfree%20Payments,Starting%20from%201.50%25%20-%201.90%25)
* [Payment Gateway Charges | Lowest Pricing & UPI Payment Gateway Fees in India | Cashfreecashfree.com/payment-gateway-charges](https://www.cashfree.com/payment-gateway-charges/#:~:text=Virtual%20account%20IMPS%2FNEFT%2FRTGS,10-year%20Anniversary%20offer%20T%26Cs)
* [Shopify Payment Gateway Fees in India: Which Payment Gateway Costs the Least in 2026?wallstreetmojo.com/shopify-payment-gateway-fees-india-2026](https://www.wallstreetmojo.com/shopify-payment-gateway-fees-india-2026/#:~:text=Easebuzz%3A%20Shopify%20Payment%20Gateway%20Review,Limited)
* [Shopify Payment Gateway Fees in India: Which Payment Gateway Costs the Least in 2026?wallstreetmojo.com/shopify-payment-gateway-fees-india-2026](https://www.wallstreetmojo.com/shopify-payment-gateway-fees-india-2026/)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=%E2%80%A2%20High%20payment%20reliability%20built,maintenance%20charges%2C%20or%20hidden%20costs)
* [Best Payment Gateway in India for Digital Payments - PayUpayu.in/payment-gateway](https://payu.in/payment-gateway/#:~:text=Yes%2C%20PayU%20offers%20a%20multi,%2C%20Android%2C%20and%20React%20Native.)
* [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=Here%20are%20the%20Razorpay%20Key,are%20subject%20to%2018%25%20GST.)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=This%20includes%20payment%20processing%20for,2%25%20%2B%20GST%20pricing%20include%3F)

AI ModeGoogle AI Mode

Answered 7 July 2026

Based on projections for 2026, the best payment gateways in India offering the lowest fees focus on a flat-fee structure, particularly for UPI and domestic cards. \*\*Cashfree Payments\*\* and \*\*Razorpay\*\* are leading contenders, with special promotions often bringing rates down to 1.6%–2% for standard domestic transactions. Top Low-Fee Payment Gateways in India 2026 - \*\*:\*\* Often considered the most cost-effective for new merchants due to its 10-year anniversary offer (valid through July 2026), offering a competitive 1.6% flat rate on domestic cards and UPI. - \*\*:\*\* Offers a standard 2% + GST rate, noted for its high success rates, reliability, and no setup/maintenance fees. - \*\*PayKun:\*\* Frequently highlighted for low transaction fees, offering rates as low as 1.75% for domestic credit/debit cards, with no setup or annual maintenance fees. - \*\*Paytm Payment Gateway:\*\* Known for very low charges on UPI and RuPay cards, often offering 0% fees for these methods, plus zero setup fees. Key Fee Factors for 2026 - \*\*Standard Rates:\*\* Most providers charge around 2% + 18% GST on that fee for domestic credit/debit cards, UPI, and wallets. - \*\*UPI Advantage:\*\* UPI and RuPay credit card transactions usually incur lower fees (often 0% to 1.5%) compared to international or premium cards. - \*\*International Payments:\*\* Expect higher fees for international transactions, generally around 3% + GST. - \*\*No Hidden Fees:\*\* Top gateways in 2026 have removed setup fees and annual maintenance charges (AMC) to attract small businesses. \*Note: The 1.6% flat pricing offer from Cashfree is for new merchants who signed up between September 2025 and July 2026, and it applies to select domestic payment methods.\* To help you choose the \*\*absolute best option\*\*, could you tell me: - What is your \*\*estimated monthly transaction volume\*\* (₹)? - Will you be processing \*\*mostly domestic or international\*\* payments? - What is your \*\*primary payment method\*\* (UPI, Credit Card, etc.)? I can then tell you which gateway will save you the most money.

Brands named

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

Sources cited · 3

* [blog / razorpay payment gateway pricing explainedrazorpay.com/blog/razorpay-payment-gateway-pricing-explained](https://razorpay.com/blog/razorpay-payment-gateway-pricing-explained/)
* [Cashfree Paymentscashfree.com/payment-gateway-charges](https://www.cashfree.com/payment-gateway-charges/)
* [Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/)

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