Personal Finance

How to Choose the Best Payment Gateway in India

One of the important part that may trouble you in your online business is choosing a good payment gateway in India. Either you sell a single product through a simple website or hundreds of products through a full fledge ecommerce website, you need a good payment gateway to process the payments for your customers.

You can take a deep breath if your targeted customers are not from India as you can use PayPal which takes only 10 minutes to implement a payment gateway on your website. First 1 minute for signup, next 5 minutes to edit your profile, add your bank details & other info & next 4 minutes to create a ‘Buy Now’ button, get the code & place it on your ‘website in ‘Order Now’ page.

With in 10 minutes, you can start receiving payments through your website if customers pay you from outside India.

But, if your customers are from India, it’s a real pain. Although there are dozens of payment gateway in India but to make it work on your website, it takes more than 10 minutes, no no more than 10 hrs, no no more than 10 days.

Really, its very confusing & time consuming & that is when I decided to write this post. I will try to help you out in my own way so that you can understand how to choose a payment gateway.

How to choose the best payment gateway in India

There are many points other than the cost factor which are useful in choosing a good payment gateway in India. Just read them in details below so that you know how to decide one that fulfils your need.


Unlike PayPal, all payment gateway in India comes at a hefty price. You have to pay 3 types of costs, no matter what payment gateway you choose. First, you have to pay a fixed setup fee, then annual maintenance cost of the software & then the charges of 3% to 7% on every transaction.

Due to competition, many online businesses operates on low margin. How much the payment gateway charge per transaction will decide, how much profit you will make at the end of the month. So initial setup cost & operating cost will make a difference in choosing your payment gateway in India.


Every minute counts in online business. You may lose many customers, if the payment gateway fails even for 1 hour. If there comes any problem in your payment gateway, there must be a dedicated technical person that can help you out to identify & solve the problem. More time they will take to support you, bigger will be your loss.

One of the important thing, you can check here is the physical address of the company in your city & how far is this from your place.

Payment Options

You need to find out which are the largest payment methods people use in India. Whether its netbanking, debit card or credit card. If net banking then which bank & if credit card or debit card then which card etc. If the payment gateway, you want to go with, does not support a particular method then you can decide, how much business you can lose.

Ease of Integration

How easy is to integrate the payment gateway in your website. Right from the initial enquiry to the integration on your website, how comfortable is this to work with a payment gateway. Whether it works with all CMS like WordPress, Drupal, Joomla etc.

Check that if they require anyone in your company to have knowledge of any programming language or if by integrating their gateway, you have to do any major changes in your website.

Ease of Use

One of the thing, I hate is, paying online through credit card on Indian sites. It takes a lot of extra effort to make the payment through Indian payment gateway.

One of the major problem I see is, payment will be debited from your account but you will get the message of unsuccessful payment. You will be scared of making payment again due to failure. IRCTC, Bookmyshow, Utility bill payment sites etc. are some of the best examples. So transaction success rate may play a very important role in your business

Then another major problem comes with 3D secure password. Most of the people do not remember their 3D secure passwords. They have to create a new one to make the transaction successful. Many people lose interest at this stage.

So make your visitors happy by giving them a simple & easy to use payment gateway with higher success rate.

Chargeback Policy

How your payment processing company handles & supports for chargeback. What, if the product is delivered but you received the chargeback. So your payment gateway must provide good support in your favor to fight the chargeback.


Sometime, people decide to buy or not, by seeing your payment gateway. Which is the most trusted payment gateway company? How your customers feel about the payment gateway? What’s their trust level?

Other Features

Apart from these, what are other features, your payment gateway is providing. Some of them are like –

  • if they support all types of mobile payment
  • it provides easy reporting of your account.
  • if it’s highly secured
  • it handles recurring payment automatically
  • it provides multiuser account with different permission level.
  • and many other that your business need.

Here is quick comparison of top 10 payment gateway companies in India based on one time setup fee, transaction charges, AMC & the banks & cards they support.

Company Name One
Time Setup Fee
Transaction Charges Annual Maintenance Cost(AMC) Credit Cards supported Banks & DC Supported Company Link
ccavenue 7500/-
7%, 5% & 1.25% for Credit Card, Netbanking 4% 5 Debit Card 1.25% 1200/-
Visa,Master Card, Amex, Diners, JCB 45 Banks including all Major banks CC Avenue
ebs 12,000/-
Master Card, Visa, Diners Card Axis Bank, HDFC Bank, ICICI Bank, J & K Bank, Citibank EBS
 direcpay 15,000 5% 2400/- Visa, Master Card 34 banks &
51 debit
hdfc payment gateway 50,000 3.5% to 6% 12,000/- Visa, Master Card HDFC
icici payseal 30,000 3% to 4% no Visa, Master Card ICICPaySeal
axis-bank-payment-gateway 6,000/- 6% 2400/- Visa,
Transecute Nil 5% Nil Visa /Master No Transecute
payu 6,000/-
D card – 1.25%
Visa & Master card 2400/- 50 banks PayU
paysignet 3,000/-
Visa, Master, JCB, American Express 15 banks PaySignet


I hope you have got some understanding of how to choose a good payment gateway for your online business. Although many people prefer to go with either CC Avenue or EBS, there are many other good options depending on your own criteria.

Do your own research before you come to a final conclusion as changing a payment gateway is more difficult than taking this first time.

Tip – You can also consider about the cash on delivery option (COD), as this is one of the biggest method people use on internet to purchase something. They feel very secured with this way of payment.

Write your opinion & share your experience so that other people can get the benefits for choosing a payment gateway.

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