The Best Online Payment Gateways With Zero Setup Fees

If you are planning to start an online store for selling or drop shipping different types of physical & digital products, then you’ll need an online payment gateway to receive money from your customers.

Before a few years, setting a payment gateway and integrating it with a website was quite a difficult task. You might need a lot of documentation for the tedious business verification process, huge setup & maintenance fees, and most importantly technical brain to make it work or seeking the help of an expert developer.

But now, this all has changed and you can set up an online payment gateway very easily using the DIY approach with a little technical knowledge.

You already know there are a number of online payment gateways and millions of people are using these services in their day-to-day’s life to shop online products.

Payment gateways are useful for merchants too. Once setup & legal formalities are completed, the merchants/sellers can receive the payments directly into their bank accounts and all transactions are listed at the single place. It also becomes easy to track the payments and no extra paperwork required.

It doesn’t matter whether you are a small seller or an e-commerce business giant or even the end-user buying the product or service. The online payment systems serve their purpose very well.

It is also helpful to bloggers, web designers, and online marketers to receive their payment without any hassle.

The digital marketing industry is growing continuously day by day.

Today, most of the countries support digital money and it can be easily converted to the currency of specific country through these online gateways so that people prefer this system over traditional cash and cheques.

Earlier, most of the sellers as well as shoppers wary of online payment processing services due to potential hassles like frauds & theft, etc. But it has become the need of businesses transactions to send and receive the payments within a few clicks.

We all know payments can be received by cheques, cash, and direct bank transfers, etc. but online payment gateway services are useful due to some notable features including the fast transactions, support for multiple currencies, security concerns, real-time tracking and much more.

Every system has its pros and cons.  Among all of the payment services, the online payment gateway is the best choice, especially for businesses.

Selection of the Best Online Payment Gateways

When you will search the term best online payment gateways on Google, you’ll see a ton of results in SERP for your query and different opinions from the industry experts/influencers and real users.

The major payments gateway services include CCavenue, Paytm, EBS, RazorPay, CitrusPay, Instamojo and some of the biggest payment processing companies like PayPal & Payoneer, etc. working globally in more than 200 countries.

Each of these online payment processing services has its own business strategy but you need to consider 10 important things mentioned below while selecting an online payment gateway for your eCommerce business.

  1. Market reputation & review from real customers
  2. Required documentation for onboarding
  3. Time to set up everything before you actually start receiving payments
  4. Payment gateway fees (charges including the setup fee, TDR, annual maintenance fee, etc.)
  5. Available payment options (Credit/Debit Cards, Netbanking, UPI, mobile wallets, etc.)
  6. UI of the payment gateway dashboard and overall user experience as a merchant/seller/business including the speed of the transaction.
  7. Availability for domestic & international payments
  8. After Sales Service & Prompt Customer Support
  9. Development features including APIs, Mobile SDKs, and different codes/key support for external integration, etc.
  10. Extra features including buyer’s protection/seller’s protection, enhanced security, hosted eCommerce store (Instamojo), etc.

For my agency website where I sell web design & digital marketing service, I was searching for the best online payment gateways to receive funds from my clients.

And, I found a few payment gateways with zero setup fees and have a reliable online payment processing operation.

I have listed a few online payment gateways here which are easy to set up and do not charge any setup fees or annual maintenance fees.

In terms of safety of transaction, commission rates, and the overall features, the following online payment gateway services definitely secure a place on our list.

The Best Online Payment Gateway Solutions


Paypal is one of the best online payment gateways for your business as well as personal transactions. It is a very secure solution to send or receive money.

PayPal was founded in December 1998 and now it is one of the largest online payment gateways. It has a good reputation in the market for online money transfer and it is a good alternative to the traditional paper currency like banknotes and cheques.

In terms of features, it provides a superior solution for money transfer in a very secure way. Though some cases of scams have happened, still it is one of the most trusted on the international level.

The transactions charges are flat 4.4%+ fixed fee and can reduce up to 2.9%+ fixed fee for the larger volume.

It does not charge a single penny as a fee while the purchase. The annual account maintenance charges, setup fee, and monthly charges are also waived off.

You have to pay, only when you receive payments and, it directly transferred to your bank account linked to it (It may take some time to transfer funds to your account).

Online payment gateway service: Paypal

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: up to 4.4% fixed fee

One of the best payment gateway service

How Does PayPal Work?

When you sign up for PayPal, it gives the option to link your local bank, mobile number, and debit/credit card. However, the primary Email ID of your account is used for receiving funds.

It can store funds in your PayPal account itself but not supported in all countries like India due to Government regulations.

You have to share your PayPal email ID (or merchant ID for more secure transactions) to send & receive payments. Even you can shop with PayPal money. It gives another option to sell kinds of stuff on eBay for lesser transaction rates.

PayPal also supports a wide range of currencies which makes it easy to use in a worldwide situation.

If you don’t have the PayPal account, then register one for free.


Payoneer is also an international payment gateway established in 2005.

Currently, it provides online money transfer and refillable debit card service in more than 200 countries and 150 currencies.  The transaction rates are less than the PayPal and variable according to the currency you use.

It does not charge you anything when you purchase or send money through Payoneer. The fee structure has made by keeping everything in mind and suitable for everyone.

If you try to compare PayPal and Payoneer, you won’t find much difference, though transaction rates of Payoneer are lesser than that of PayPal.

Online payment gateway service: Payoneer

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: up to 3% + Bank charges if any

Payoneer's online payment gateways

How Does Payoneer Work?

Payoneer a cross-border payment gateway beneficial for receiving funds especially from the US and EU. When you sign up for a Payoneer, it will link to your local bank account.

However, if you want to receive payments from international clients, Payoneer will give you a bank account for ACH in the US and SEPA in the EU.

It helps to do your business locally as well as internationally with the same efficiency. The benefit of this service is that you won’t lose in currency conversion when receiving payments from these countries.

Apart from transaction fees, it charges 2-2.75% to withdraw funds in your local account. All details are shared on your dashboard.

Another advantage of choosing Payoneer is that the association with the Mastercard and you can get Payoneer Prepaid Mastercard for easier and convenient fund withdrawal or buy a product or service on a global level. You can get the Mastercard currency converter tool to check your transaction fees.

It provides the cap of 5 lac for the single transaction and withdrawal for the single business day. However, the cap grows up to 25 lac for a calendar month. The payments exceeded that limit will be rejected.

If you are receiving money from overseas clients, Payoneer will give the edge over the PayPal, especially when you are receiving from the US or EU.

You can earn $25 for the Sign up for Payoneer. And, the interesting thing is that it’s free.


In this list, the PayUMoney also a game-changer when we talk about online payment gateways for India. PayUMoney provides a faster and secure transfer (128-bit SSL encryption and PCI DSS level 1) of funds.

It also provides the HTML code for the ‘PAY’ button to receive money on your own portals like website or blog. The most I like about them is their instant support feature.

It has a community of more than 2.5 lac active sellers and happy with their service. It charges a flat 2% only for all transaction that is very less as compared to other payment gateway solutions. Apart from that, it adds 1% extra only on AMEX cards. It does not charge any setup fee or annual maintenance fee. So it is growing at very rapid rates.

The mobile-friendly versions and login free check out with the support of more than 125 banks and cards make it harder to beat.

Faster account activation and even faster settlement make it amazing. It also features free billing software for your phone and let you create bills and collect payments.

Online payment gateway service: PayUMoney

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: flat 2%

Card Swipe Machine

card swipe machine

PayUMoney provides the card swipe machine for its sellers with minimum documents (PAN and a canceled cheque). You can link it to an existing bank account also.

The wireless card swipe machine can access any type of debit/ credit card and anywhere in India and gives full access to your transactions. Being eco-friendly it does not use paper and sends the receipt to the buyer’s mobile number. Smart huh?

It costs only Rs. 8500 that is very less price and no monthly or yearly premium. TDR also set up 2% less. You are a smart seller and I’m sure that you won’t miss this deal.

Even if you haven’t taken the decision, it’s time to roll on. Sign up here for PayUMoney now!


When we think about the mobile payment solution no one misses out the word Paytm. It is one of the leading mobile payment solutions with the e-wallet feature.

Easy to set up and simple to use even by a rookie. Paytm has integrated with most of the brands as the online payment gateway.

It also provides money transfer solution with the zero setup fee and annual maintenance. The transaction rates are also set up to 1.99% (+ service tax).

Even Paytm has come with the deal with the zero fees for the first 3 months (or gross transaction of 2 lacs, whichever is earlier).

It is a very popular payment gateway and millions of people using it for buying the kinds of stuff. I think if you like Paytm, you won’t miss this deal. Sign up here for the free Paytm Business account.

Online payment gateway service: Paytm

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: up to 1.99% (+ service tax)


It is also one of the trusted online payment gateways with no monthly charges or setup fees. The transaction rates may differ up to 5% according to country and currency used.

It provides cross-border payments also with very less fee of 1.5% for that. It features flexible payment methods with debit/credit cards and PayPal also. Moreover, it let you receive payments by bank transfer, international wire transfer, and even on Payoneer Mastercard too.

It is one of the options for the online payment gateway and really amazing. Easy to start and see your business growing rapidly. If you want to check it out, Sign up here for the free 2Checkout seller account.

Online payment gateway service: 2Checkout

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: up to 5%


Razorpay is excellent eCommerce payment solutions in India that allow merchants to send and receive payments with its product suite.

You can accept the payment through various modes including the credit/debit card, UPI, net banking, and popular wallets including JioMoney, Mobikwik, FreeCharge, etc.

It also offers automated recurring payment for different subscription services and Razorpay’s Smart Collect feature allows users to easily collect payments via direct bank transfers methods (NEFT/RTGS/IMPS) as well as automate the tedious reconciliation process.

For the people who don’t have a website, Razorpay has developed the payment links. You can share these links via SMS, emails, social media, and chatbot, etc. to get paid immediately.

Invoicing is another great feature in Razorpay. It will help you to build trust with your clients when you share detailed expenses over the invoices to get paid faster by letting them pay online from the invoice itself.

For setup and annual maintenance of your online payment gateway account, it does not charge a single penny. You only need to pay the transaction fees.

The standard plan of Razorpay takes just 2% per transactions for the domestic/Indian card payments, Netbanking, UPI and mobile wallets, etc.  and 3% per transaction for dinner/Amex cards, EMI and international cards, etc. while GST is also applicable on transaction fees.

For enterprise levels, you can ask for custom pricing and Razorpay will definitely help to match your business needs.

Online payment gateway service: Razorpay

Setup Fee: Zero

Annual Maintenance Fee: Zero

Transaction Fee: up to 3% + GST


Initially, I had a very bad experience with Instamojo service for the KYC documents verification process.

They simply told me that my business is not compliant with their service and closed my account without leaving any option behind.

I used to advise my peers if someone wants to join them, he should clear the doubt about the KYC verification and business integration process before signing up to the Instamojo.

But Nowadays, Instamojo has improved its online payment gateway service and you can expect a nice performance as one of the leading eCommerce payment solutions.

It offers the simple and easy to follow user interface and the lots of features like social pay, store for physical as well as digital goods (You can store your digital files on their server).

It charges 2%+Rs. 3 for each transaction while 5%+Rs. 3 for the hosted digital goods. It has also waived off other fees and charges regarding setup, annual maintenance etc. You can go for it if you want.

If you want to know more about it, click here to read a complete Instamojo review.

Online payment gateway service: Instamojo

Setup Fee: zero

Annual Maintenance Fee: Zero

Transaction Fee: 2%+Rs. 3 for each transaction while 5%+Rs. 3 for the hosted digital goods

If you haven’t used Instamojo before, you can now create a new account and start accepting the payments from your customers.

Plus, when you complete the KYC/business verification process and receive the first valid payment on Instamojo, you will be rewarded with ₹500 as the signup bonus. [Use reference code ANKIT_MAINf564 when asked].

Sign up For Instamojo

Instamojo referral link & referral code

Wrap up

I have found these online payment gateways, the best suited for any e-commerce business from the beginner to the established brands too.

The companies listed above have tied up with many big companies like Amazon, Flipkart, Snapdeal, DishTV, MakeMyTrip, Jabong, eBay and e-commerce platforms like Shopify, Magneto, and WooCommerce, etc.

Make sure to read their terms and conditions and Privacy Policy again, before moving ahead.

If you like this article don’t forget to share with your peers. In case, you have any feedback or want to add another payment gateway service, feel free to connect with the comment box below.


1 thought on “The Best Online Payment Gateways With Zero Setup Fees”

  1. Hi Ankit, Nice Post .

    The Payment Service providers listed above are a great option in case if it is for a low risk industry. Almost all the above mentioned providers are not comfortable with High Risk Businesses . I would suggest you to recommend some High Risk Merchant Account providers as well.

    Also it will be great if you introduce Check21 Solution to the merchants as it can be very helpful if the buyers are located in the United States.

    The Risk is calculated by the Payment service Provider by keeping many things in mind

    The % of Returns
    The % of Charge-backs
    The Financial Stability of the Merchant
    The Delivery Time Frame of the Product and Services
    The Geo Location difference between the buyer and the seller.

    Best Wishes and Happy blogging . I will be glag to contribute to this page .


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