How Payment Gateway Charges Impact Indian Coaching Institutes
When educational institutes, neighborhood coaching centers, and independent private tutors accept online fee payments through traditional aggregators (such as Razorpay, Cashfree, Paytm PG, or Instamojo), they are charged a Merchant Discount Rate (MDR) averaging 2.0% per transaction.
However, under Indian tax regulations, an additional 18% Goods and Services Tax (GST) is levied strictly on top of the gateway fee. This raises the true effective fee deduction to 2.36% on every rupee of tuition paid by parents.
The Real Cost Breakdown: A 60-Student Coaching Center
- Monthly Fee Volume: 60 students × ₹2,500 = ₹1,50,000 / month
- Base 2% Gateway Fee: ₹3,000 / month
- 18% GST on Gateway Fee: ₹540 / month
- Total Monthly Loss: ₹3,540 / month
- Total Annual Loss: ₹42,480 / year
Over a 3-year period, this single coaching institute loses ₹1,27,440 purely in payment processing cuts — capital that could otherwise fund classroom ACs, digital smartboards, or faculty bonuses.
Why Direct NPCI UPI Intent is 100% Free for Tutors
Under Government of India and Reserve Bank of India (RBI) mandates, peer-to-peer and merchant UPI intent transactions carry 0% MDRin India. By leveraging native UPI deep links (`upi://pay`), FeeAlert connects parents directly to the educator's verified UPI ID (Google Pay, PhonePe, Paytm, BHIM) without routing funds through an intermediary payment aggregator.
This enables three massive operational advantages:
100% of student fee reaches your bank account with zero cuts.
No T+2 delay. Money lands in your account the moment parent enters UPI PIN.
Works with your existing personal savings or current UPI ID.
Ready to Stop Losing 2.36% on Every Tuition Fee?
Join over 1,200+ coaching institutes, tuition academies, and independent educators across India collecting fees with 0% gateway commission, automated WhatsApp reminders, and instant digital receipts.