Indian Payment Gateways – a big joke?

Thinking of using Indian Payment Gateways for your online service? Don’t go for them, they are a big joke. Here is info about some of the payment gateways.

CCAvenue: They are considered to be the best providers in India. (There is no competition in the market) They provide online order processing via Net Banking as well as by credit card. They charge Rs. 7500 as setup fees, 7% transaction fees for Credit Card Processing and 4% transaction fees for net banking. They also charge Rs. 1200 per year as Annual Software Maintenance Cost. (lol just another way to get yearly fees) They have other plan which costs Rs. 25,000 as setup fees, 5% transaction fees for Credit Card processing and 4% for net banking. The annual fees they charge is Rs. 2400 as Software Maintenance Cost.

But note that, it is not so easy to get account with them if you are running a web development firm. My personal experience was very bad with them. I felt as if I am begging for an account.

I applied for a basic account (Rs. 7500 one). Within 4-5 days I got email saying my account got rejected because I am running a web development firm and it is owned by a single person. This one was one of the worst excuse that anyone could give. But after requesting them couple of times, they approved only net banking facility on my account. I was left without credit card processing which was my primary concern for applying the account.

Few days back I decided to ask them again to activate the credit card processing. I sent them an email and talked to their person in legal department over the phone. They took more than a week to decide and finally today she told me that if I want credit card processing on my account I will have to deposit Rs. 30,000. And they repeated the same reason about having a single ownership web development firm. They also told me that, they are asking for this amount as security deposit for chargebacks.

So in short, they are giving silly reasons despite of me signing their legal documents which says they have right to sue me if I don’t pay them chargeback money.

I am currently using, they are 10 times bigger than CCAvenue and they activated my account within 1 hour after the signup. The only problem I have with them is, payment delay. It takes approximately 20 days to get the payment.

But I think applying for CCAvenue is just waste of money if you are running a proprietorship web development / hosting firm.

Transecute: This is another payment gateway service from India. (I think it is service of Directi) But like CCAvenue, they are also useless. They charge Rs. 30,000 as setup fees and 5% transaction fees. But one good part is, they do not charge any annual fees.

ABCPayments: This service is by IndiaMart, InterMesh. Their rates are almost same compared to CCAvenue. Rs. 7,000 setup fees, Rs. 2,000 per year as annual rent and 7% transaction fees. The same plan is available for Rs. 10,000 one time and no yearly fees. The other plans are Rs. 10,000 and Rs, 16,000 with annual rent as Rs. 4,000 and Rs. 6,000, transaction fees %6 and %5 respectively. They also offer net banking but it is limited to few major banks only. As of October 2009, ABC Payment has shut down their service.

Payseal ICICI: They have not provided any rate related information on their site. As far as I know, they charge Rs. 25,000 as setup fees and 5% as transaction fees. (I have emailed them for exact rates) For integration with this payment gateway, you need Tomcat installed on your server. (Or any application which can run JSP pages)

PayGateIndia: The rates mentioned on their site range from 0 setup fees to Rs. 8,000 setup fees. Their economy package costs Rs. 0 as setup fees but 8% as transaction fees and Rs. 750 per year as annual cost. Their rates are very cheap compared to other payment gateway service providers but I am not sure about credibility of this payment gateway. They seem to be reseller of ICICI Payseal. (I have emailed ICICI to confirm their validity)

Eazy2Pay: Again, like ICICI, these guys too do not have rates mentioned on their site. But after exchanging few emails, I got the details. It starts with Rs. 10,000 setup fees and 5% transaction fees. Fees is one time fees and no annual charges. Their best plan is Rs. 25,000 setup fees and 3.5% transaction fees. They have few big companies in their client list. So it holds some credibility in its bag.

Update – June 30, 2007:

Cashwala or EBS This one is by UTI Bank. Their pricing seems to be pretty high, Rs. 11,000 one time charge, 6% transaction rate and Rs. 6000 every year as Maintenance Charge. Check more plans here

But to cut everything in short, compared to international payment gateways these guys are way too costly. Currently only few players are in market so they are charging whatever they want but once Google comes into play (I think they are currently setting up Checkout service in India, it might take longer time too), their rates are going to reduce a lot.

Currently PayPal and 2checkout are good payment gateway providers and their transaction and setup fees are also very reasonable. But the only thing they lack is, time to deposit the funds in our accounts. It takes approximately 15-20 days.

Update: Rejoice!!!! Paypal has introduced direct funds transfer to your Indian Bank Account.. The best part is, they do not charge any fees for funds more than
Rs. 7,000 (otherwise it is Rs. 50). The whole process takes 5-7 days. Thanks Venkat for the heads up.

I hope Google Checkout starts in India soon.


  1. Arre why did you tell them that you are ‘independent’ with no company backing.

    Do the following, I did this and got 2 accounts with EBS.

    1) Step 1 is you have to create a proprietor firm. For it ALL YOU NEED is a rubber stamp! With your company/your own/desired name.

    2) For e.g. lets assume you decided “123Designs”. Now make a rubber stamp with the name at top and authorized signatory/proprietor at the bottom.

    3) Create your letterhead, whcih shouldn’t be difficult to you since you are a developer.

    4) Now call EBS, ccavenue again and tell them that you have a proprietor firm and are looking for a payment gateway. This time they WILL entertain you since you do not sound “independent”!

    5) Finally open a current account with a bank. I think you must be operating from home, so you will not get a ‘shop act’ certificate. So better to open an account where the bank does not ask for this. (I think Union Bank will open account if you can give a reference).

    Then fill out the forms of EBS/Avenue as per their requirement and you it will all be done in around a month.

    Best of Luck,

  2. i think firm registration is must for these kinda process, might be for current account or for CC Aven, they asked fo Rs.300 stamp paper and Firm Registration, and yes as u said rumber stam and letter head.. dont u think the verfy for FIRM registration, Firm Reg means.. Govt will giv esome number on FIRM… i’m really thankful to u amod, you are responding and sharing ur knowledge with me… 🙂

  3. Firm Registration = Proprietor’s letter on HIS letterhead or Shop Act certificate. THATS ALL. No other paper. Just listen to me and do the steps and complete registration with ccavenue or ebs.

    You are in India boss, there is NO NUMBER or anything for proprietary concerns, other than your ‘firms’ tax receipt (which anyway happens next year now).

    And of course, if you do not even want to invest like 300-500INR in this, then seriously you need to re-consider getting a payment gateway. Because, there are also annual fees with these guys!

    Other than that, once again NO, there’s no “Firm Number” or anything in India for a proprietary firm. Do you think your local raddiwala has a firm number!!?? He still pays tax. (most probably!) All he has is a shop act certificate, thats all.

  4. hmmm so if i follow ur steps, how long will it take to get DONE and Total process will costs…? and one mor question. we are having to marketing site (both different ownership), if both agree to share one account (ccAven or ebs).. is this possible to use single gateway on two websites.. any backdoors 🙂

  5. To get the entire process done, from proprietor’s stamp to opening bank account to registration with gateway should take you under a month (realistically).

    And for sharing one gateway, there’s no backdoor, its simply not possible! Because the payment gateway has a unique id for each of their sites. And i would DEFINITELY not encourage you to hack/crack into their systems to do this because they have some of the best bengaluru programming brains working for them!! 🙂

    And of course, even if you could hack, it would create a series of complications for you, and mind you, its a major cyber crime that you could easily go inside for!


  6. Thanks alot Amod ji, almost cleared all doubts and gave some hope to get that gateway… i will wear my shoes to try again… once again thanks 🙂

  7. Its not paygateindia but paysignet and i am not sure if at all they exist.. except on email.
    For the last year i have been observing their live chat button hardly works.

  8. Hi, thanks for the message. When I was trying for a payment gateway for my site with Paypal, they said that it is not possible for an Indian user to pay an India based site. Pls let me know if anybody have any info regarding this.

  9. Soumik Banerjee 27-Jul-2011 at 10:37 am

    After 48 hours of research and no sleep I realized that you post is the greatest reality about Indian payment gateways.

    Paypal was only solution but recent RBI rules has almost made it dead.

  10. Thanks, After going through all the posts, we realised that 2checkout is the best option. The upfront cost 49$ can be reversed if you have a promo code. Also 5.5% + 0.45 $ and while withdrawing the amount 4-6$ seams to be reasonable. Contact me incase some one wants a promo code.


  11. Dont try to Take Icici payment gateway as they days & days. months & months to activate Live account. Over that their customer, technical people do not support it anyway. Every time, some new marketing guy will take your call and you keep on explaining the story from start and he disappear to promise a help.y

  12. Hi Deep,

    Can you please provide your opinon about CyberSource to use as payment gateway in India?

  13. Payu is the latest entrant and may give a custome quote for existing payment gateway users to lure them.
    downside- 2400 for annual maintenance.

  14. I have 2checkout, paypal and moneybookers. What we need in indian NOW is Netbanking – mainly for which we need services like CCAVENUE, but they are a bit difficult to approve you as Individual business owners like MANY MANY formalities and signing lot of documents.

    Credit Card processing – 2checkout is best.

    PAYPAL – So Sad, Indians cannot pay Indians NOW…. Otherwise who would care for services like CCavenue, EBS etc.

    So only for Netbanking facility we have to beg ccavenue for approval..

  15. I have another update for you all. After going through all Pains of multiple documents, stamp papers, formalities, i got a response that I am Disapproved for credit card processing and approved for only Netbanking, that too ICICI still doubtful and they have to appove me…
    So I decided to cancel these RIDICULOUS services and revert back to my earlier processors – 2checkout and paypal…

  16. software training 21-Feb-2012 at 12:58 pm

    I was searching for better payment gateway and I would like tog sign up with 2checkout. Does it support Debit cards ?

  17. I had tried 2checkout recently. It’s pretty much costly.

    They charge USD 15 to send the wire to India + they keep certain % of the total amount as reserve too. (I think it’s around 5%)

    Paypal is much cheaper and quicker.

  18. Amod , really you said the fact , i am thankful to you , by giving such idea, by the way , transcute , alertpay and entropay , i experienced , and its really bad , Avenue has rude behavior , EBS is good enough , but the godfather is Paypal , but , our india is so best that we can’t use it for domestic transfers, our system (RBI) vs Paypal = Indian’s Bad Luck

  19. It would be great if you could share 2co pricing in INR.. Their website does not have pricing information in terms if INR.

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