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Debit card charges for merchants in India

Of the 9 payment gateways that publish a rate for debit card payments, Airpay leaves you the most from a ₹10,000 payment: ₹9,887.90 (up to ₹2,000: 0.45% · above ₹2,000: 0.95% + 18% GST). Instamojo leaves you the least: ₹9,760.46 (2% + ₹3 + 18% GST).

Published rates, last checked 26 Oct 2026. Ranked only by what you receive.

Payment gateway fees for debit card payments, ranked by what you receive
AppFeeYou receive on ₹1,000You receive on ₹10,000You receive on ₹1 lakhArrivesStatus
AirpayLeaves you the mostup to ₹2,000: 0.45% · above ₹2,000: 0.95% + 18% GST₹994.69₹9,887.90₹98,879.00In 1 working day (T+1)Unverified
Cashfree Payments1.95% + 18% GSTAn offer may apply to new sign-ups₹976.99₹9,769.90₹97,699.00In 1–2 working days (T+1 to T+2)Verified
Paytm Payment Gateway1.99% + 18% GST₹976.52₹9,765.18₹97,651.80In 1 working day (T+1)Verified
PhonePe Payment Gatewayfrom 1.99% + 18% GST₹976.52₹9,765.18₹97,651.80In 1 working day (T+1)Unverified
CCAvenue2% + 18% GST₹976.40₹9,764.00₹97,640.00Not publishedVerified
PayU2% + 18% GST₹976.40₹9,764.00₹97,640.00In 2 working days (T+2)Verified
Razorpay2% + 18% GSTAn offer may apply to new sign-ups₹976.40₹9,764.00₹97,640.00In 2 working days (T+2)Verified
Zoho Paymentsup to ₹2,000: 2% (no GST) · above ₹2,000: 2% + 18% GST₹980.00₹9,764.00₹97,640.00In 2 working days (T+2)Verified
Instamojo2% + ₹3 + 18% GST₹972.86₹9,760.46₹97,636.46In 3 working days (T+3)Verified

Work it out for your own amount

Pick any app and amount. The calculator starts on the option that leaves you the most.

App

Payment method

₹

You receive

₹9,887.90, after ₹112.10 in fees

The official rules

  • RBI debit card MDR caps (non-RuPay)

    In force from 1 Jan 2018

    MDR caps by merchant turnover: small merchants (≤ ₹20 lakh previous-FY turnover) ≤ 0.40% (QR ≤ 0.30%), max ₹200 per transaction; others ≤ 0.90% (QR ≤ 0.80%), max ₹1,000. These cap MDR, not a gateway’s total platform fee.

    RBI/2017-18/105 — Rationalisation of MDR for Debit Card…NPCI — FAQs: MDR on Select UPI (P2M) Transactions…

  • Zero MDR on RuPay debit cards

    In force from 1 Jan 2020

    No MDR on RuPay debit card transactions since January 2020. As with UPI, some gateways still publish a platform fee for RuPay debit, or are silent.

    PIB, 19 Mar 2025 — Incentive scheme for low-value…

  • GST exemption: card settlement up to ₹2,000

    In force from 1 Jul 2017

    Services by an acquiring bank in relation to settlement of up to ₹2,000 in a single card transaction are exempt (Sl. 34, Notif. 12/2017). CBIC Circular 245/02/2025 extends this to RBI-regulated payment aggregators for the settlement function only, not payment gateway services. Whether a given gateway’s fee qualifies depends on how it is billed, so the app applies it only where the provider states it (e.g. Zoho, Stripe).

    Notification 12/2017-Central Tax (Rate), Sl. No. 34CBIC Circular 245/02/2025-GST (28 Jan 2025)

  • GST at 18% on payment-processing fees

    In force from 1 Jul 2017

    Residual financial services under Heading 9971 attract 9% CGST + 9% SGST (or 18% IGST). GST is charged on the provider’s fee, never on the transaction amount. Applied by default where a provider does not state the rate.

    Notification 11/2017-CT(Rate), consolidated to…

Questions people ask

Which payment gateway is cheapest for debit card payments?

Of the 9 payment gateways that publish a rate for debit card payments, Airpay leaves you the most from a ₹10,000 payment: ₹9,887.90 (up to ₹2,000: 0.45% · above ₹2,000: 0.95% + 18% GST). Instamojo leaves you the least: ₹9,760.46 (2% + ₹3 + 18% GST). This uses each gateway’s published rate, before any sign-up offer; a rate you negotiate can be lower.

How much do payment gateways charge for debit card payments?

Published fees run from up to ₹2,000: 0.45% · above ₹2,000: 0.95% + 18% GST (Airpay) to 2% + ₹3 + 18% GST (Instamojo). The most common is 2% + 18% GST, published by 3 gateways. On a ₹10,000 debit card payment, that leaves you between ₹9,760.46 and ₹9,887.90.

Is GST charged on debit card payment fees?

Yes. GST at 18% is added to the app’s fee, never to the payment itself, and the amounts on this page already include it. If your business is registered for GST, you may be able to claim it back as input tax credit.

Status: Verified means the rate matches the provider’s official page. Unverified means we found it but couldn’t fully confirm it on an official page, so check it with the provider. Not published means the provider doesn’t publish it. Amounts include GST on the fee only, never on your payment, and use published rates before any sign-up offer. Your contract or dashboard has the final word. Clarifee isn’t paid by any payment company.

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