Cashfree Fee Calculator.
Calculate exact domestic MDR deductions (1.95%), 18% GST tax, 0% introductory promotional rates (up to ₹20L GMV), international card charges, and net bank settlements.
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Pass Fee to Client (Legal Surcharge Engine) Calculate zero-shortfall compliant markup & legal surcharge limits
• United States: Visa & Mastercard cap credit card surcharges at 3.00% (effective April 2023). Surcharging debit or prepaid cards is strictly illegal under federal operating rules.
• UK & European Union: Surcharging consumer debit and credit cards is prohibited under PSD2. B2B / corporate card surcharges remain permitted.
• Australia: Governed by RBA; surcharging is legally restricted strictly to the merchant's actual cost of card acceptance.
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The 2026 Indian Payment Aggregator Landscape: Why Cashfree Matters
Under Reserve Bank of India (RBI) Payment Aggregator (PA) guidelines, digital payment processors operate under strict escrow account controls, KYC mandates, and fund routing protocols. Cashfree Payments has emerged as one of India's leading licensed Payment Aggregators, processing billions in annual GMV across D2C brands, SaaS platforms, NBFCs, and gig economy marketplaces.
Unlike legacy payment gateways that charged steep annual maintenance charges (AMC) and setup fees, modern infrastructure on Cashfree comes with ₹0 upfront fees, transparent 1.95% domestic MDR, and developer-first REST APIs for instant vendor split payouts and recurring UPI AutoPay e-mandates.
Cashfree vs Razorpay Payment Gateway Fee Comparison
| Feature / Metric | Cashfree Payments | Razorpay |
|---|---|---|
| Standard Domestic MDR | 1.95% + 18% GST | 2.00% + 18% GST |
| Promotional Offer | 0% on first ₹20 Lakhs GMV | Standard pricing |
| RuPay Credit Card on UPI | 2.15% + 18% GST | 2.00% + 18% GST |
| International Cards | 2.99% + 18% GST | 3.00% + 18% GST |
| Setup / AMC Fees | ₹0 Free | ₹0 Free |
| Instant Payouts / Disbursal | Native Payouts API (24x7) | RazorpayX Payouts |
Mathematical Inversion: Invoicing Formula with 18% GST Factor
Because 18% GST applies to the Merchant Discount Rate (MDR) rather than the principal invoice, the total effective fee percentage is calculated by multiplying MDR by 1.18:
Gross Invoice Amount = Desired Net Settlement / (1 - Effective Rate)
Example: If you need to clear exactly ₹1,00,000 net for consulting services: ₹1,00,000 / (1 - 0.02301) = ₹1,00,000 / 0.97699 = ₹1,02,355.20. Invoicing ₹1,02,355.20 leaves you with exactly ₹1,00,000 after Cashfree's MDR and GST deductions.
5 Tactics to Minimize Payment Gateway Costs in India
1. Claim Every Rupee of GST Input Tax Credit (ITC)
Never let the 18% GST become a sunken expense. Ensure your Cashfree merchant profile has your validated GSTIN so monthly invoices reflect in GSTR-2B, enabling full credit offsets against your output GST.
2. Leverage UPI Intent & QR Prioritization
Direct UPI transfers have the lowest interchange costs and near-zero dispute risks. Default your checkout interface to UPI AutoPay and Intent deep-links to reduce payment drop-offs.
3. Capitalize on the ₹20L 0% GMV Promo
If launching a new venture or subsidiary, onboard through Cashfree's 0% GMV promotional program to save up to ₹39,000 in payment processing fees during your initial scaling phase.
4. Negotiate Enterprise Volume Tiering
Once your monthly processing volume surpasses ₹50 Lakhs GMV, reach out to Cashfree's enterprise sales team. Merchants at scale frequently negotiate blended rates down to 1.65% to 1.75% + GST.
Cashfree vs Razorpay: Full 2026 Head-to-Head Comparison
Compare UPI success rates, automated payouts, international FX fees, and merchant dashboard analytics.
Frequently Asked Questions
What are official Cashfree Payment Gateway charges in India for 2026? ↓
Cashfree charges a standard domestic transaction MDR of 1.95% across domestic debit cards, credit cards, net banking, UPI, and digital wallets. A mandatory 18% Goods and Services Tax (GST) applies strictly on the MDR fee portion, creating an effective total deduction rate of 2.301%.
What is the Cashfree 0% payment gateway promotional offer? ↓
For newly registered merchants, Cashfree offers a 0% platform fee on domestic payments for their first ₹20 Lakhs in Gross Merchandise Value (GMV), valid until March 31, 2027. During this promotional window, only statutory GST or third-party bank interchange applies where applicable.
How does 18% GST apply to payment gateway MDR in India? ↓
GST does NOT apply to your gross order value. It applies strictly as an 18% tax on the gateway fee itself. For example, on a ₹10,000 transaction with a 1.95% MDR (₹195.00), the 18% GST is ₹35.10 (₹195 * 0.18), resulting in total deductions of ₹230.10 and a net bank payout of ₹9,769.90.
Can businesses claim the 18% GST paid on Cashfree fees as Input Tax Credit (ITC)? ↓
Yes. If your enterprise possesses a valid GSTIN registered with Cashfree, Cashfree issues a monthly GST tax invoice (B2B). You can claim 100% of this GST as Input Tax Credit (ITC) in your GSTR-3B filings to offset your outward output tax liability.
How does Cashfree compare to Razorpay in pricing and feature sets? ↓
Razorpay charges a standard 2.00% + 18% GST (effective 2.36%), while Cashfree charges 1.95% + 18% GST (effective 2.301%) and offers a ₹20 Lakhs 0% GMV introductory tier. Both provide RBI-authorized Payment Aggregator infrastructure, instant refunds, automated recurring subscriptions (e-mandates), and multi-currency international checkouts.
What are Cashfree's rates for RuPay Credit Cards on UPI and International Cards? ↓
RuPay Credit Cards linked to UPI are charged at 2.15% + 18% GST for transactions over ₹2,000 (under ₹2,000 has zero MDR per NPCI guidelines). International Visa, Mastercard, and American Express cards are processed at 2.99% + 18% GST across 30+ supported foreign currencies.
What is the settlement schedule for Cashfree, and how do Instant Settlements work? ↓
Standard bank settlements clear on a T+1 or T+2 banking day cycle. For businesses needing immediate working capital, Cashfree offers Instant Settlements 24x7x365—including Sundays and bank holidays—depositing funds within 15 seconds for a small nominal add-on fee (typically 0.15% to 0.20%).
How do I calculate what to invoice a client to receive an exact round figure in INR after MDR and GST? ↓
Use the reverse gross-up formula: Invoice Amount = Desired Net Settlement / (1 - (MDR * 1.18)). For example, at standard 1.95% MDR: Effective Rate = 0.0195 * 1.18 = 0.02301. To clear exactly ₹50,000 net, bill: ₹50,000 / (1 - 0.02301) = ₹50,000 / 0.97699 = ₹51,177.60.