When choosing a payment gateway, one must consider multiple aspects such as the image and reputation of the payment gateway, the payment gateway transaction success rate, the payment method options, etc. However, the primary aspect that any merchant would take into consideration is the payment gateway charges. He would try to get a low-cost payment gateway providing the best services.
The pricing of the payment gateway is one of the most important factors to take into account before selecting one for your business. When you are comparing the multiple payment gateways, the fees and other charges play an important role, most importantly, the MDR.
Transaction Discount Rate (TDR)
The payment gateway charges the per-transaction fees, also known as the transaction discount rate (TDR) or the merchant discount rate (MDR). After the deduction of the TDR, the remaining amount is settled in the merchant’s bank account. Apart from these, there are other payment gateway charges levied too. Thus, the merchant needs to calculate the overall fees and charges when looking for a low-cost payment gateway.
These charges could vary as per the type of payment method and international or domestic transactions. The rate is not that large but it would matter when considered in cumulative form.
There are other payment gateway charges too such as set up fees, maintenance charges, integration fees, etc, that they might charge. For different payment gateway companies, the fees and charges would vary.
Free Payment Gateway is a Myth
Any payment gateway charges would at least include a Transaction Discount Rate (TDR). They might not have any maintenance fees or set up charges but there would always be a TDR.
The payment gateway charges or the fees are levied to deliver the payment processing services. They need to charge these to cover their own cost. Thus, any payment gateway at least charges a basic amount. This is the TDR. Generally, a percentage amount is charged on each transaction. As mentioned earlier, it can be charged differently as per the payment method, the area of the transaction (domestic or international), and also the risk level of the business.
The question is, what are the types of costs that the payment gateway companies are trying to cover?
Some of these charges are the Interchange fee, merchant account fees, security charges, etc.
A card issuing company ((VISA, Mastercard, etc) levies the charges on the receiving bank for the credit card payments, known as the Interchange rate. It is the cost for the transaction handling and to cover the risk.
When the merchant wants to accept the card payments, they need to have a merchant account. As per the transaction volume and business model, the merchant is charged a fee on top of the interchange rate.
Other Payment Gateway charges
There are other payment gateway charges levied to facilitate the payment processing. These are:
- Set up fees – Charges for setting up the merchant account.
- Integration fees – The payment gateway charges this when it renders the services for integration.
- Maintenance fees – To maintain the technology, upgrades, and functioning of the system a charge is levied periodically known as the Annual maintenance fee.
Low-Cost Payment Gateway in India Charging Zero Setup Fees
PayKun payment gateway charges the lowest fees in India. It has the lowest TDR and also there are no other fees except for that. Meaning to say that the setup fees, maintenance charges, and integration fees are zero. It is the best Low-cost payment gateway in India charging zero setup fees.
Not only that, it provides the best services too and has the optimum features such as:
- Best security with PCI DSS compliance
- Robust APIs
- Ready integration kits for easy integration
- Supports all major platforms for website and mobile app integration
- 120+ payment method alternatives
- Merchant Dashboard Tool
- Lowest Pricing @ 1.75% Transaction Discount Rate (TDR)
- Best customer support via email, chat, and call
- Assigned account manager as one point of contact
- Domestic and international services
- Fast onboarding and settlements
The payment gateway charges may vary from payment gateway to payment gateway. You may inquire and compare different service providers and choose the one which is the best for your business. As described above, PayKun provides the best services at the lowest rates. They also offer customized pricing plans as per your business model and transaction volume. Enquire now!