# Best payment gateway with lowest fees India 2026 · 15 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/2026-07-15/p/6
Source: Cite Solutions (cite.solutions)
Published: 2026-07-15
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[← B2B Payments & Business Banking · 15 July 2026](/state-of-ai-india/payment-gateways/reports/2026-07-15)One prompt · three engines

Prompt 06 · 15 July 2026

# Best payment gateway with lowest fees India 2026

Three engines were asked the exact prompt above on 15 July 2026. Below is the verbatim answer each one gave, the brands it named, and the URLs it cited.

ChatGPTgpt-5-5

Answered 15 July 2026

If your priority is \*\*the lowest transaction fees\*\* while still getting reliable payment processing in India in 2026, here are the strongest options: | Payment Gateway | Typical Domestic Fee | Best For | Notes | |---|---:|---|---| | \*\*Cashfree Payments\*\* | \*\*1.6% (promotional for eligible new merchants)\*\*; standard around 1.95% | Startups, SMEs | One of the lowest advertised rates currently, subject to eligibility and terms. Enterprise pricing available. | | \*\*Razorpay\*\* | Around \*\*2%\*\* (custom pricing for high volume) | Most businesses | Excellent APIs, high payment success rate, subscriptions, broad payment support. | | \*\*PayU\*\* | Around \*\*2%\*\* (custom pricing) | Medium & large businesses | Strong enterprise features and international support. | | \*\*CCAvenue\*\* | Custom pricing | Businesses needing international currencies | Supports many payment methods and currencies. | ### Lowest fees by business size - \*\*New startup (<₹1 crore/month):\*\* Cashfree's promotional \*\*1.6%\*\* offer is currently among the cheapest publicly advertised options, provided you meet the eligibility conditions. - \*\*Growing business (₹1–10 crore/month):\*\* Negotiate with Razorpay, Cashfree, and PayU. Many gateways offer custom rates between roughly \*\*1.4%–1.8%\*\* depending on volume, industry, and payment mix. - \*\*Enterprise:\*\* Custom contracts almost always beat standard pricing. ### Don't choose on fees alone A gateway charging \*\*2.0%\*\* but approving more transactions can generate more revenue than one charging \*\*1.6%\*\* with lower payment success. Payment success rate, settlement speed, uptime, refund handling, and support often have a bigger financial impact than a 0.2–0.4% fee difference. ### Recommendation - \*\*Lowest advertised fees:\*\* Cashfree Payments - \*\*Best overall value:\*\* Razorpay - \*\*Best for enterprise negotiation:\*\* PayU - \*\*Best for international payments:\*\* CCAvenue If you tell me: - your monthly payment volume (e.g. ₹5 lakh, ₹50 lakh, ₹5 crore), - whether you sell \*\*physical products, SaaS, services, or subscriptions\*\*, and - whether you need \*\*international payments\*\*, I can recommend the most cost-effective gateway for your specific business.

Brands named

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

Sources cited · 6

* [Lowest payment gateway charges in Indiacashfree.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)
* [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)
* [AvenuesAIen.wikipedia.org/wiki/AvenuesAI](https://en.wikipedia.org/wiki/AvenuesAI?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)
* [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)

Geminigemini-3-flash

Answered 15 July 2026

In India's digital payment ecosystem in 2026, comparing payment gateways on "fees" requires looking beyond just the headline percentage transaction rate (TDR). You also have to factor in \*\*Setup Fees\*\*, \*\*Annual Maintenance Charges (AMC)\*\*, and the \*\*Payment Success Rate\*\* (since a cheaper gateway that fails transactions costs you more in lost revenue). An overview of the best payment gateways in India with the lowest fees for 2026 reveals how they compare: --- ### Comparison Table: Top Indian Payment Gateways (2026) | Payment Gateway | Domestic Transaction Fee (TDR)\* | Setup Fee | Annual Maintenance Fee (AMC) | Settlement Cycle | Best For | |:--- |:--- |:--- |:--- |:--- |:--- | | \*\*Cashfree\*\* | \*\*1.95%\*\* (Lowest standard rate) | Free | None (or up to ₹4,999/yr depending on plan) | T+1 or Instant | High-volume sellers & fast payouts | | \*\*Razorpay\*\* | \*\*2.00%\*\* | Free | \*\*Zero\*\* | T+2 Days | Startups, D2C brands, & developers | | \*\*Easebuzz\*\* | \*\*\~1.50% to 2.00%\*\* | Free | Zero | T+1 Days | SaaS & subscription models | | \*\*PayU\*\* | \*\*2.00%\*\* | Free | \*\*Zero\*\* | T+2 Days | Medium-to-large enterprises | | \*\*Paytm (PG)\*\* | \*\*1.99%\*\* (0% on UPI) | Free | \*\*Zero\*\* | T+1 Days | SMEs heavily leveraging UPI | \*\*Note: 18% GST is applicable on all payment gateway transaction fees as per Indian tax laws.\* --- ### Deep Dive into the Top Low-Fee Gateways #### 1\. Cashfree Payments (Overall Lowest Transaction Fees) Cashfree is highly popular because of its aggressive pricing structures. \* \*\*The Fees:\*\* Starts at \*\*1.95%\*\* for domestic cards, Net Banking, and wallets. For UPI, they offer highly competitive rates (and often 0% depending on the specific integration). \* \*\*The Catch:\*\* While transaction rates are low, double-check your sign-up contract, as certain high-volume features can occasionally bundle a small yearly maintenance fee. \* \*\*Best Features:\*\* Excellent for instant refunds and automated payouts. #### 2\. Razorpay (Best "No Hidden Fee" Value) Razorpay is the market leader for a reason: its reliability and API infrastructure are second to none. \* \*\*The Fees:\*\* Flat \*\*2.00%\*\* platform fee on domestic credit/debit cards, net banking, and wallets. UPI is free. \* \*\*The Catch:\*\* There are absolutely \*\*no setup fees\*\* or \*\*AMCs\*\* (Annual Maintenance Charges). \* \*\*Why it's cheap in the long run:\*\* Their payment success rate (typically 90%+ compared to \~80% on cheaper, less stable alternatives) means you lose far fewer sales to system errors, which ultimately saves you more money. #### 3\. Easebuzz (Best Budget Option for Subscriptions) Easebuzz has emerged as a major player in India, offering lower customized rates starting around \*\*1.5%\*\*. \* \*\*The Fees:\*\* Average transaction fee is around 1.5%. \* \*\*Best Features:\*\* Perfect for high-volume, recurring SaaS subscriptions or educational institutions because of its specialized splitting and sub-merchant features. #### 4\. Paytm Payment Gateway (Best for Small Retailers) \* \*\*The Fees:\*\* Standard \*\*1.99%\*\* + GST for credit cards and Net banking. UPI transactions are standardly \*\*0%\*\*. \* \*\*Best Features:\*\* Offers a seamless integration if your customer base relies heavily on the Paytm wallet app. --- ### Important Things to Remember in 2026: 1\. \*\*The UPI Rule:\*\* All major payment gateways offer \*\*0% TDR on UPI transactions\*\* (using RuPay debit cards or standard UPI VPA transfer) because of government mandates. Since UPI makes up over 70% of online transactions in India, your average blended transaction fee across all orders will likely end up \*\*much lower than 2%\*\*. 2\. \*\*GST is Extra:\*\* Don't forget that 18% GST applies to the \*transaction fee itself\*. (e.g., On a ₹1,000 transaction with a 2% gateway fee, the fee is ₹20, plus ₹3.60 GST, totaling ₹23.60). 3\. \*\*Volume Discounts:\*\* If your store processes more than ₹5,00,000 per month, \*\*do not pay the standard rates\*\*. Contact the sales team of Cashfree, Razorpay, or PayU to negotiate custom rates (often dropping below 1.5%).

Brands named

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

Sources cited · 16

* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=Gateway%20with%20lower%20headline%20pricing%20%28%40%201.8%25,over%20time.%20Beyond%20pricing%2C%20realised%20revenue%20matters.)
* [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=All%20fees%20are%20subject%20to%2018%25%20GST.,a%20possible%20discount.%20Razorpay%20Pros%20and%20Cons.)
* [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=Cashfree%20provides%20highly%20scalable%20solutions%20tailored%20for,processing%20costs%20while%20enjoying%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=Cashfree%20Payments%20Key%20Usage%20Fees.%20Here%20are,Cashfree%20Payments'%20Pricing%20for%20the%20complete%20details.)
* [10+ Best Payment Gateway In India for 2026 - Info Stansinfostans.com/best-payment-gateways-india](https://infostans.com/best-payment-gateways-india#:~:text=Transaction%20Fee%3A%20-%202%25%20on%20Indian%20debit%2Fcredit,intervention.%20-%20Real-time%20currency%20conversion%20is%20possible.)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=Start%20accepting%20payments%20at%20just.%202%25%200%25%2A,-%20Netbanking.%20%2B%2067%20Others.%20-%20Wallets.)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=There%20are%20zero%20setup%20fees%20and%20zero,transaction%20volume%2C%20preventing%20liability%20during%20lean%20periods.)
* [Payment Gateway Charges - Simple & Transparent Pricing - Razorpayrazorpay.com/pricing](https://razorpay.com/pricing/#:~:text=Assume%20a%20business%20attempts%20%E2%82%B91%20crore%20in,any%20change%20in%20demand%20or%20marketing%20spend.)
* [Best Payment Gateways in India for Dropshipping (2026) - Qikinkqikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/#:~:text=T%2B2%20to%20T%2B3%20Days.%20Enterprise%20Businesses.%20Zaakpay.,4.40%25%20%2B%20Fixed%20Fee.%20Varies.%20International%20Transactions.)
* [Best Payment Gateways in India for Dropshipping (2026) - Qikinkqikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/#:~:text=Fees%20Structure%20-%20Customised%20pricing%20for%20every,Charges%20an%20average%20transaction%20fee%20of%201.5%25.)
* [Best Payment Gateways in India for Dropshipping (2026) - Qikinkqikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/#:~:text=Fees%20Structure%20-%20Standard%3A%202%25%20for%20cards,Mastercard%20and%20Visa%20cards%20issued%20in%20India.)
* [10+ Best Payment Gateway In India for 2026 - Info Stansinfostans.com/best-payment-gateways-india](https://infostans.com/best-payment-gateways-india#:~:text=Paytm%20is%20the%20well%20known%20payment%20gateway,-%20Net%20banking%3A%20%3A%201.99%25%20%2B%20GST.)
* [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=Providers.%20Highlights.%20Fees.%20A%20widely%20used%20and,2%25%20-%205%25%20plus%20INR%203%20fee.)
* [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=Please%20note%20that%2018%25%20GST%20is%20applicable,please%20refer%20to%20the%20Paytm%20Pricing%20page.)
* [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=Below%20that%2C%20the%20zero-AMC%2C%20higher-success-rate%20payment%20gateway,4%2C999%2Fyear%20line%20item%20at%20their%20first%20invoice.)
* [Best Payment Gateways in India for Dropshipping (2026) - Qikinkqikink.com/blog/best-payment-gateways-india](https://qikink.com/blog/best-payment-gateways-india/#:~:text=3.%20Cashfree%20Payment%20Gateway%20-%20Starts%20at,Custom%20pricing%20designed%20for%20enterprises%20%28contact%20sales%29)

AI ModeGoogle AI Mode

Answered 15 July 2026

Based on 2026 data, the best payment gateways in India offering low fees, especially for UPI, include \*\*Cashfree Payments\*\* (starting \~1.75%), \*\*Paytm\*\* (0%-1.99%), and \*\*Razorpay\*\* (2%). Top Low-Fee Payment Gateways 2026 - \*\*Cashfree Payments\*\*: Considered a top contender for the lowest TDR (Transaction Discount Rate) in India, frequently starting from \*\*1.75%\*\*. - \*\*\*\*: Highly competitive, offering \*\*0% on UPI\*\* and around \*\*1.99% on card transactions\*\*. - \*\*Razorpay\*\*: Widely adopted for startups, it offers a standard \*\*2% + GST\*\* rate and is noted for its high success rates. - \*\*PayU\*\*: A reliable option for SMBs, starting from \*\*2%\*\* with high security and broad payment options. - \*\*Instamojo\*\*: Suitable for micro-businesses and creators, often featuring quick setup and instant settlement options. Key Considerations for 2026 - \*\*UPI Rates\*\*: UPI transactions (P2M) are generally the lowest cost, with some gateways offering low or competitive platform fees. - \*\*Transaction Fees\*\*: Almost all leading gateways have eliminated setup and annual maintenance fees, opting for a pay-as-you-use model (\~1.75%–2% + GST). - \*\*Settlement Speed\*\*: \*\*Cashfree\*\* provides fast settlement cycles (24-48 hours). - \*\*Best for Startups\*\*: \*\*Razorpay\*\* is noted for its user-friendly interface, while \*\*Cashfree\*\* is favored for its competitive rates for higher volumes. For most businesses, the best approach is to compare specific TDRs for your primary payment method (e.g., UPI vs. credit cards) as they vary between providers. To give you the best recommendation, could you tell me: - \*\*What is your estimated monthly transaction volume (GMV)?\*\* - \*\*Do you primarily use UPI, Cards, or Netbanking?\*\* - \*\*Are you a small business, startup, or enterprise?\*\* Knowing this, I can tell you if you should focus on \*\*lowest fees\*\* or \*\*highest success rates\*\*.

Brands named

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

Sources cited · 6

* [blog / top payment gateways in indiashopaccino.com/blog/top-payment-gateways-in-india](https://www.shopaccino.com/blog/top-payment-gateways-in-india)
* [Paytm Payment Gatewaypaytmpayments.com/payment-gateway](https://www.paytmpayments.com/payment-gateway)
* [in / blog / best small business payment gatewaywise.com/in/blog/best-small-business-payment-gateway](https://wise.com/in/blog/best-small-business-payment-gateway)
* [blog / low cost payment gateway in india the complete decision guiderazorpay.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/)
* [blog / comparison between indian payment gatewaysangularminds.com/blog/comparison-between-indian-payment-gateways](https://www.angularminds.com/blog/comparison-between-indian-payment-gateways)
* [blog / 7 cheapest payment gateways in india for saas startups in 2026salarybox.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/)

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