Schools and EdTech platforms collect payments for tuition fees, admissions, courses, subscriptions, exams and several other services. A payment gateway helps manage these collections, but understanding its pricing can sometimes feel confusing.
Payment preferences are also changing quickly. According to the Reserve Bank of India, UPI accounted for 84% of India’s retail digital payment volume in 2024–25. UPI transactions also grew by 41.7% in volume and 30.3% in value during the year. This makes the payment-method mix an important pricing consideration for schools and EdTech platforms.
You may come across terms such as transaction charges, GST, settlement fees, refund costs, integration charges and recurring payment fees. Each of these can affect how much you actually pay for collecting online payments.
Do these terms sound confusing? No worries. By the end of this blog, you will have a clear understanding of how payment gateway pricing works and what to check before choosing one for your school or EdTech platform.
What Does Payment Gateway Pricing Mean for Schools and EdTech?
Payment gateway pricing refers to the amount a school or EdTech platform pays to accept online payments through a payment processing solution.
This cost is usually linked to every successful transaction, but it may also include setup fees, subscription charges, settlement fees, refund costs and integration charges. The final amount can also change based on how students or parents pay, such as through UPI, cards, net banking, wallets or EMI.
For example, a school collecting annual fees through UPI may have a different cost structure than an EdTech platform offering monthly course subscriptions.
So, while comparing payment gateways, it is important to look beyond the advertised transaction rate and understand the complete pricing structure.
How Does Payment Gateway Pricing Work?
Payment providers may follow transaction-based, subscription-based or customised pricing models for schools and EdTech platforms. The final cost can include several charges depending on the payment methods, integrations and services required.
Transaction Fee
This is the most common payment gateway charge. It is usually calculated as a percentage of the amount paid by the parent or student.
For example, if a student pays ₹10,000 and the transaction fee is 2%, the payment gateway charge will be ₹200. The rate may change depending on whether the payment is made through UPI, a debit card, a credit card, net banking, a wallet or EMI.
Setup and Integration Charges
Some providers may charge a one-time fee to set up the payment gateway or integrate it with the school’s ERP, website, mobile app or the EdTech platform’s LMS. Others may offer standard integrations at no additional cost but charge for custom development.
Subscription or Maintenance Charges
Apart from transaction-based pricing, a provider may charge a monthly or annual fee for using its platform. This may cover access to the dashboard, reports, payment links, APIs or additional support.
Settlement and Refund Charges
Standard settlements may be included in the regular plan, while faster or instant settlements may carry an additional charge. Refund policies can also vary between payment providers. In some cases, the processing fee charged on the original payment may not be returned when a refund is issued.
GST on Payment Gateway Charges
GST is generally added to the payment gateway’s service or platform fee. It is not calculated on the entire tuition or course fee collected from the student.
Since every provider structures these charges differently, always check what is included in the quoted rate before comparing two payment gateways.
Payment Gateway Charges by Payment Method
The payment method chosen by a parent or student can affect how much the school or EdTech platform pays. Here is a quick look at how pricing generally differs:
| Payment method | How pricing usually works |
|---|
| UPI | MDR does not apply to payments made through prescribed modes such as BHIM-UPI and BHIM-UPI QR. However, schools and EdTech platforms should still check what technology, integration, reporting, and reconciliation services are included in their provider’s commercial plan. |
| Debit and credit cards | Domestic card payments generally carry a percentage-based charge. The rate may vary by card type, network, and transaction volume. |
| Net banking and wallets | These are also commonly charged as a percentage of the transaction value. |
| EMI and Pay Later | These options usually cost more than standard payments because a bank or financing provider is also involved. |
| International cards | Charges are generally higher and may include foreign currency conversion costs. |
| Virtual accounts | Providers may charge a fixed fee for each payment received or offer custom pricing based on volume. |
| Recurring payments | Monthly course or tuition collections may include mandate registration and recurring processing charges. |
Payment gateway charges can vary depending on the payment method, monthly transaction volume, average payment value and services included in the plan. EMI, Pay Later and international payments may also have a different cost structure from regular domestic payments.
Instead of comparing providers only by an advertised transaction rate, schools and EdTech platforms should request a detailed cost breakdown based on their actual collection profile.
Also, zero MDR on UPI does not always mean that the entire payment collection service is free. Schools and EdTech platforms should ask whether the quoted price includes the checkout, integration, reports and reconciliation tools they need.
Schools and EdTech platforms both collect education-related payments, but their collection patterns are quite different. This can affect which payment gateway features they need and how much they eventually pay.
| Schools and educational institutions | EdTech platforms |
|---|
| Collect admission, tuition, transport, hostel, examination and other fees | Collect course fees, subscriptions, booking amounts and certification fees |
| Usually receive large payment volumes during admissions or at the beginning of a term | May receive payments throughout the year |
| Need payments mapped to a student ID and the correct fee category | Need payments linked to a course, batch, learner or counsellor |
| May allow monthly, quarterly or annual fee payments | Often offer subscriptions, instalments, EMI and partial payments |
| Usually integrate payments with a school ERP or student information system | Commonly connect payments with an LMS, CRM, website or mobile app |
| Need parent-friendly receipts and pending-fee records | Need quick course activation, renewal reminders and failed-payment retries |
For schools, features such as student-wise virtual accounts and automatic fee reconciliation can reduce manual work. For EdTech platforms, recurring payments, course-level tracking, EMI and payment status updates may be more important.
Therefore, the right pricing plan depends on the institution’s payment cycle, fee structure, transaction volume and integration requirements.
Read More: Why EdTech payments need more than a payment gateway
How to Calculate the Real Cost of a Payment Gateway
The transaction rate is an important part of payment gateway pricing, but it does not always show the complete cost of collecting payments.
Schools and EdTech platforms can use the following formula:
Total payment collection cost = Transaction charges + GST + fixed fees + integration costs + settlement charges + refund or dispute costs
Let’s understand the calculation with an example.
Suppose a school collects ₹10 lakh through 500 successful online payments in a month. For this example, assume a payment processing fee of 2%. The actual rate may vary depending on the payment method, transaction volume and commercial agreement.
- Illustrative payment processing fee: ₹20,000
- GST at 18% on the platform fee: ₹3,600
- Total direct payment gateway cost: ₹23,600
The school’s cost per successful payment would be:
₹23,600 ÷ 500 = ₹47.20 per payment
Any additional charges for instant settlements, custom integrations or other services would increase this cost. The school should also consider the time its finance team spends matching payments with student records, following up on failed transactions and resolving payment disputes.
This is why two providers offering similar transaction rates may not have the same overall cost. The better comparison is the amount spent on every payment that is successfully collected and reconciled.
How to Choose the Right Payment Gateway Pricing Model
The right pricing model depends on how often you collect payments, the amount collected and the payment methods your students use.
Pay-As-You-Use Pricing
In this model, you pay a percentage on every successful transaction. It may suit smaller schools, coaching centres and growing EdTech platforms because there is usually no large upfront cost. Some providers also offer plans without setup or annual maintenance charges.
Custom Pricing
Schools and EdTech platforms with higher transaction volumes can ask for a customised rate. Providers may decide the pricing based on monthly collection value, industry, payment methods and the services required.
Before selecting a plan, check:
- Your average and peak monthly collections
- The share of UPI, card, EMI and international payments
- Whether you need recurring payments
- ERP, LMS or app integration requirements
- Settlement frequency
- Refund and support requirements
Schools should consider admission and term-fee collection peaks, while EdTech platforms should pay closer attention to subscriptions, payment retries and international transactions.
How EnKash Supports Education Payments
EnKash is an RBI-authorised payment aggregator that also issues prepaid payment instruments (PPI), operates as a Bharat Bill Payment Operating Unit (BBPOU), and runs on PCI DSS-compliant infrastructure. For schools and EdTech platforms, this has a direct bearing on pricing: because EnKash collects, settles and reconciles fee payments on its own regulatory licences rather than routing through an intermediary, commercials are set directly with the institution and aren't marked up by an extra layer in between. It also means collections, settlements, refunds and reconciliation all sit within a single regulated framework, instead of being stitched together across multiple providers.
Every school and EdTech platform has a different payment setup. A school may collect tuition, transport and hostel fees at fixed intervals, while an EdTech platform may offer one-time courses, monthly subscriptions or instalment plans. EnKash allows the payment experience to be customised around these requirements.
Give Students and Parents More Ways to Pay
Payment preferences can vary from one user to another. EnKash supports UPI, debit and credit cards, net banking, digital wallets, EMI and Pay Later through a single integration. Schools can offer convenient fee payment options, while EdTech platforms can make higher-value courses more accessible through instalments and flexible payment plans.
Make reconciliation part of the payment flow
Collecting a payment is only one part of the process. The finance team must also identify who paid, which fee or course the payment belongs to, whether it was settled and if any refund or reversal was initiated.
EnKash provides transaction-level visibility and settlement reconciliation across payments, refunds, reversals and disputes. Its reporting dashboard can help institutions track collections without depending on multiple spreadsheets or manual payment matching.
Connect Payments With Existing Systems
The payment gateway can be integrated with websites, mobile applications and business systems through APIs and SDKs. Depending on the institution’s setup, the payment flow can be tailored to connect with an ERP, LMS, CRM or accounting system. EnKash also supports custom payment flows for requirements that may not fit a standard checkout.
Choose a Plan that Matches Your Collection Profile
A school with seasonal admission collections should not be evaluated in the same way as an EdTech platform processing subscription payments throughout the year. EnKash offers customised plans based on factors such as transaction volume, payment-method mix, integration requirements and settlement needs.
Institutions can request a tailored cost breakdown based on their fee structure, collection volume and preferred payment modes.
Conclusion
Choosing a payment gateway becomes easier once you know what goes into the final cost. It is not only about the transaction rate. Payment methods, settlements, refunds, reconciliation, integrations and support can all affect what you eventually pay and how smoothly collections are managed.
Payment gateway pricing comes down to a handful of variables — method mix, settlement speed, reconciliation and integration. Once you can see all of them, comparing providers becomes straightforward. The FAQs below cover the most common remaining questions."
Frequently Asked Questions
1. How much does a payment gateway charge schools and EdTech platforms?
Payment gateway charges depend on the payment method, monthly transaction volume, average fee amount and services required. Domestic card payments are generally charged as a percentage of the transaction, while EMI, international cards and faster settlements may carry higher charges.
2. Is UPI free for collecting school and course fees?
Under the current framework, standard bank-account UPI payments have zero MDR. However, a payment gateway may still charge for services such as checkout technology, payment links, reconciliation, reports or custom integration. Therefore, schools should confirm what is included in the proposed plan.
3. Who pays the payment gateway charges for school fees?
The school or EdTech platform may absorb the charges as a business expense. Some institutions may add a clearly disclosed convenience fee for certain payment methods, subject to their agreement with the payment provider and applicable rules.
Before passing any charge to parents or students, the institution should check the terms of its payment provider and seek appropriate legal or tax advice.
4. Are payment gateway charges refunded when a student receives a refund?
Not always. A payment gateway may process the refund without an additional fee but may not return the transaction charge and GST deducted from the original payment.
Refund policies differ across providers, so schools and EdTech platforms should check this before selecting a pricing plan.
5. Can schools and EdTech platforms collect fees in instalments?
Yes. Depending on the gateway and the institution’s eligibility, payments may be collected through card EMI, Pay Later, recurring mandates or scheduled payment plans.
EdTech platforms can also use UPI AutoPay for recurring course subscriptions where supported. UPI AutoPay allows customers to approve a mandate for future recurring payments.
6. Do payment gateways charge setup or integration fees?
Some providers offer standard integrations without a separate setup fee, while others may charge for custom APIs, ERP or LMS integration, specialised payment flows and technical support.
Ask whether website integration, mobile SDKs, payment links, webhooks and testing support are included in the quoted plan.
