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Here’s How Business Owners Can Use Paytm Payment Gateway To Save Almost INR 1 Lakh Every Month

Paytm's payment gateway brings huge savings for business owners across India and relieves them of cumbersome digital transaction charges.

February 28, 2022 / 10:56 AM IST

As the economy picks up after the Omicron wave in the country subsides, merchants and small to medium business owners are seeing increased traction in online sales as delivery restrictions ebb and supplementary items are bought by customers. Generally, more sales equals more revenue and thus, more profits for any business owner. However, there is one element that always brings a little grief to business owners every time a transaction gets processed.

We’re talking about MDR, or Merchant Discount Rate, the fee charged by gateway companies to process the transaction between the user and business owner. By conventional estimates, business owners end up spending almost a lakh rupees per month on MDR. This not-so-insignificant amount can now be saved by simply switching to a new modern-day MDR that charges no transaction fees and allows you as a business owner to take the complete cost of your inventory with savings to the tune of INR 97,700 per month! Let’s find out how.

Understanding MDR –

As we’ve established earlier, MDR refers to the fees that a business incurs while accepting digital payments from its customers. So, if you’re selling an item that costs INR 1,000 and the payment gateway charges 1.8% (standard charges for using credit cards, debit cards and wallets), you only get INR 982 as the business owner with the remaining INR 18 being deducted by the payment gateway.

The most popular payment gateways include debit and credit cards, Netbanking, UPI and Online Wallets. Here’s how they would work with their payment gateway fees.

Payment sourcePaytmRazorpayPayU
Credit card1.99%2%2%
Debit card (Rupay)0%2%2%
Debit card (Others)0.4%-0.9%2%2%
Net Banking1.99%2%2%
Paytm Wallet1.99%Not availableNot available


The two tables below show how much a business would pay as payment gateway charges to Paytm Payment Gateway and other payment gateways. Here is where it gets interesting.

Charges Incurred On Paytm Payment Gateway
Payment modeTransaction percentage splitBusiness volume (crores)Paytm MDRCharges (INR)
Credit card10%0.101.99%19,900
Debit card15%0.150.85%12,750
Now, let’s look at charges incurred without using Paytm Payment Gateway.
Charges incurred on other payment gateways
Payment modeTransaction percentage splitBusiness volume (crores)MDRCharges (Rs)
Credit card10%0.102.00%20,000
Debit card15%0.152.00%30,000