PayU Swipe Charges Calculator – Including Fixed Platform Fee with GST

Payment gateway charges are not always limited to percentage-based fees. Many gateways, including PayU Swipe, apply a combination of percentage fees, GST, and fixed platform charges.
This Knowledge Base article explains how to extend an existing PayU Swipe calculation formula by adding a fixed platform fee with GST, without disturbing the original logic.

The article is written for IT administrators, developers, accountants, and system integrators who need accurate reconciliation between customer-paid amounts and actual settlement credits.

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Technical Explanation

Existing Charge Structure (Unchanged)

The original PayU Swipe calculation uses:

• Gateway Fee: 1.8913% of the net amount

• GST on Gateway Fee: 18%

Formula:

Gateway Fee = Net Amount × 1.8913%
GST on Gateway Fee = Gateway Fee × 18%

New Charge Introduced

A fixed platform fee is now applied:

• Platform Fee: ₹32.57

• GST @ 18%: ₹5.86

• Total Platform Charges: ₹38.43

This charge is added to the customer payment, not deducted from the merchant’s net amount.

Updated Formula (Final)

Customer Pays =
Net Amount You Want to Receive
+ Gateway Fee (1.8913%)
+ GST on Gateway Fee (18%)
+ Platform Fee (₹32.57)
+ GST on Platform Fee (18%)

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Use Cases

• Reconciling PayU Swipe settlements with bank credits

• Building internal billing or invoicing tools

• Showing transparent payment breakups to customers

• Validating discrepancies between gateway reports and ERP/Tally entries

• Automating payment calculations on websites or admin panels

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Step-by-Step Implementation

Step 1: Accept Net Amount

The merchant enters the amount they want to receive after all deductions.

Step 2: Calculate Gateway Charges

$fee = $net * (1.8913 / 100);
$gst = $fee * (18 / 100);

Step 3: Add Platform Fee and GST

$platform_fee = 32.57;
$platform_gst = $platform_fee * 0.18;
$platform_total = $platform_fee + $platform_gst;

Step 4: Calculate Final Customer Payment

$gross = $net + $fee + $gst + $platform_total;

Step 5: Apply Rounding

$fee = round($fee, 4);
$gst = round($gst, 4);
$platform_fee = round($platform_fee, 4);
$platform_gst = round($platform_gst, 4);
$platform_total = round($platform_total, 4);
$gross = round($gross, 4);

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Example Calculation

This matches real-world PayU Swipe settlement behavior.

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Common Issues & Fixes

Issue: Platform fee deducted from net amount

Fix: Always add platform charges to the gross customer payment, not subtract from net.

Issue: Mismatch with gateway settlement report

Fix: Ensure GST is calculated separately for:

• Gateway fee

• Platform fee

Issue: Rounding mismatch

Fix: Use consistent rounding (preferably 4 decimal places) across all components.

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Security Considerations

• Validate all user inputs to prevent negative or zero values

• Avoid exposing internal fee logic in client-side JavaScript

• Perform calculations server-side to prevent tampering

• Log calculated values for audit and reconciliation

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Best Practices

• Keep fixed fees configurable (constants or config files)

• Maintain a clear fee breakup for transparency

• Separate business logic from UI code

• Regularly verify gateway fee percentages against official documentation

• Use consistent precision across financial calculations

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Conclusion

By adding a fixed platform fee with GST as a separate component, you can extend existing PayU Swipe calculations without altering the original formula. This approach ensures:

• Accurate settlement reconciliation

• Clear customer payment transparency

• Easy future maintenance and upgrades

This implementation is production-safe, auditable, and aligned with real payment gateway behavior.

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