Answered 16 July 2026
Choosing a payment gateway in India with **no setup fee** and **no Annual Maintenance Charges (AMC)** is essential for startups and small businesses to avoid fixed overheads.
In 2026, the standard **Transaction Discount Rate (TDR)** or Merchant Discount Rate (MDR) across major Indian payment gateways generally sits between **1.6% to 2% + 18% GST** on successful domestic transactions.
The best payment gateways in India that offer **₹0 Setup Fees and ₹0 AMC**, along with high transaction success rates, include:
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## 1. Razorpay
Razorpay is widely considered the industry standard in India due to its excellent developer ecosystem, extensive integration options, and extremely high payment success rates.
* **Setup Fee / AMC:** ₹0
* **Domestic Transaction Fee:** **2%** per transaction (+18% GST).
* **International Cards:** **3%** per transaction (+18% GST).
* **Pros:** Seamless API integration; outstanding native tools for subscriptions, UPI AutoPay, and instant refunds.
* **Cons:** The 2% standard platform fee is slightly higher than some discount alternatives.
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## 2. PhonePe Payment Gateway
PhonePe PG has emerged as a major player because of its deep integration with the massive PhonePe consumer app, making UPI payments extremely fast and frictionless.
* **Setup Fee / AMC:** ₹0
* **Domestic Transaction Fee:** Highly competitive. They frequently run **0% platform fee** promotional plans for early-stage startups and small businesses, scaling up to customized plans as transaction volume grows.
* **Pros:** Native UPI flow is incredibly fast; excellent checkout success rate for mobile-first shoppers.
* **Cons:** International payment support and enterprise developer tooling are not as feature-rich as Razorpay's.
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## 3. PayU India
PayU is an enterprise-grade payment gateway that remains a great choice for businesses of all scales, especially those looking to accept international cards and EMIs right from day one.
* **Setup Fee / AMC:** ₹0
* **Domestic Transaction Fee:** Standard **2%** (+18% GST) for cards, net banking, and wallets.
* **Pros:** Incredible infrastructure scalability; robust risk-assessment engines and strong support for EMI options.
* **Cons:** Strict KYC documentation and onboarding verification processes.
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## 4. Paytm Payment Gateway
Despite regulatory transitions, Paytm's direct-to-bank payment infrastructure remains one of the fastest and most reliable for high-traffic checkouts.
* **Setup Fee / AMC:** ₹0
* **Domestic Transaction Fee:** Standard **1.9% to 2%** (+18% GST).
* **Pros:** Fast digital onboarding; excellent built-in reward and coupon systems directly on the checkout screen.
* **Cons:** Limited specialized features for native SaaS/subscription setups.
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## 5. Easebuzz
Easebuzz has quickly climbed the ranks by offering highly competitive rates and targeting specialized use cases (like fee collection for schools or split payments for marketplace startups).
* **Setup Fee / AMC:** ₹0
* **Domestic Transaction Fee:** Average **1.5% to 1.9%** (+18% GST).
* **Pros:** Highly flexible APIs; superb split-payment architecture for marketplace business models.
* **Cons:** Developer documentation is less "plug-and-play" than Razorpay's, requiring more technical effort to integrate.
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## Summary Comparison
| Payment Gateway | Setup Fee | Annual Maintenance (AMC) | Domestic TDR (MDR) | Best For |
|:--- |:--- |:--- |:--- |:--- |
| **Razorpay** | **₹0** | **₹0** | ~2.0% + GST | Standard e-commerce, SaaS, subscriptions, and startups |
| **PhonePe PG** | **₹0** | **₹0** | Very low / Free promotions | Mobile-first checkout, high UPI volume, and cost savings |
| **PayU** | **₹0** | **₹0** | ~2.0% + GST | High-volume enterprises and cross-border payments |
| **Paytm PG** | **₹0** | **₹0** | ~1.9% to 2% + GST | Mobile web & app checkouts with fast settlement |
| **Easebuzz** | **₹0** | **₹0** | ~1.5% to 1.9% + GST | Marketplaces needing vendor split-payouts |
### Important Watch-outs:
1. **The "Cashfree" Trap:** While Cashfree is an exceptional gateway, double-check their latest pricing page. They occasionally advertise a very low introductory TDR (like 1.6%) but enforce an **Annual Maintenance Charge (AMC)** of roughly ₹4,999/year depending on your signup plan, making it less than ideal if you are looking for a strictly ₹0 fixed-cost option.
2. **UPI is Free for Customers, but not always for Merchants:** While direct customer-to-customer UPI transactions are free in India, payment gateways charge a nominal platform fee (usually capped or bundled in your TDR) to route, secure, and settle merchants' UPI checkout payments.