See exactly what a payment gateway keeps and what lands in your account. Enter the amount and payment method to get the MDR fee, 18% GST on it, and your net settlement.
When a customer pays you online, the payment gateway keeps a small cut called the Merchant Discount Rate (MDR), and the government charges 18% GST on that fee. This tool takes the amount and payment method, applies the fee rate, adds GST, and shows the net amount that actually settles into your bank account. Change the rate to match your own gateway plan, because MDR is negotiable and varies by provider and volume.
UPI and RuPay debit cards currently carry zero MDR for person-to-merchant payments by regulation. Debit cards are usually around 0.4% to 0.9%, credit cards and wallets around 2%, net banking around 1.5%, and international cards around 3%. Aggregators like Razorpay, PayU, Cashfree, and Paytm often advertise a flat 2% on their standard plans and negotiate lower rates at higher volumes. GST of 18% applies on the fee itself, not on your sale value.
A customer pays ₹2,000 by credit card on a gateway charging 2%. The fee is ₹40, GST on the fee is ₹7.20, so ₹47.20 is deducted and ₹1,952.80 settles to your account. The effective cost of accepting that payment is about 2.36%. Switch the same sale to UPI and you keep the full ₹2,000.
For normal person-to-merchant (P2M) UPI payments there is currently zero MDR, so you receive the full amount. Some gateways may still bundle UPI into a flat plan, so check your specific agreement. Interchange can apply on certain wallet (PPI) transactions above Rs 2,000 and is borne by the wallet issuer, not you.
Yes. Payment gateways charge 18% GST on their fee (the MDR), not on your sale value. If your fee is Rs 40, GST adds Rs 7.20. If you are GST registered you can usually claim this as input tax credit.
No. Razorpay, PayU, Cashfree, Paytm and others publish different headline rates and negotiate lower MDR as your volume grows. The rate also differs by method, with credit cards and international cards costing more than debit or net banking. Always confirm your plan's exact rates.
By default the merchant absorbs the MDR, so it reduces your settlement. Some businesses add a convenience fee to pass part of the cost to the customer, but rules on surcharging vary, so check what your gateway and card networks allow.
Commmerce POS and checkout accept UPI, cards, wallets, and net banking, and reconcile settlements automatically so your books always match.
See Billing & Checkout
