Razorpay Payment Gateway pricing is structured as a usage-based model. There are no setup charges and no annual maintenance charges (AMC) for standard accounts. Merchants pay a platform fee only when a transaction is successful. GST at 18% is applied to the platform fee.

This article explains domestic pricing, international charges, subscription fees, billing rules, and common questions clearly and factually.

 Razorpay Payment Gateway – Domestic Fees

Base Platform Fee – Standard Plan

• 2% of the successful transaction value for most domestic payment methods
  
• 18% GST applies to the platform fee
  
• No setup fee
  
• No Annual Maintenance Charge (AMC)

The platform fee covers:

• Payment processing
  
• Fraud detection and prevention
  
• Transaction routing and optimisation
  
• Dashboard reporting and reconciliation
  
• Settlement management

Domestic Payment Methods & Pricing Table

Note: Credit Card on UPI may include additional MDR components beyond Razorpay’s platform fee.

Notes on EMI and Cardless EMI

• EMI includes both credit card and debit card EMI options.
  
• Cardless EMI includes financing products and UPI AutoPay EMI offerings.
  
• Cardless EMI transactions are generally charged at 3% + GST.
  

GST Impact

All Razorpay payment gateway platform fees attract 18% GST on the fee amount.

Example:

• 2% platform fee becomes 2.36% total cost
  
• 3% platform fee becomes 3.54% total cost

GST is calculated only on the platform fee, not on the full transaction value.

Razorpay International Payments – Pricing

Razorpay allows businesses to accept payments from customers outside India through the Razorpay International Payment Gateway and MoneySaver Export Account.

International Credit & Debit Cards

• 3% of transaction value + GST
  
• Optional chargeback protection: Additional 1% (approx. total 4%)
• Supports cards issued by international banks (Visa, Mastercard, Amex, Diners Club)

International Bank Transfers

• 1% of transaction value + GST
  
• Product: MoneySaver Export Account
  
• Zero forex markup for merchants
  
• Supports ACH, SEPA, SWIFT via virtual accounts

International Payment Methods (Wallets & Local Methods)

• 3.5% per transaction + GST
  
• Includes supported international wallets and alternative payment methods

Additional Notes on International Transactions

• Foreign exchange conversion and partner bank fees may apply.
  
• Settlement timeline: Typically, T+7 business days.
  
• Domestic settlements generally occur faster.

Razorpay Subscriptions – Pricing and Supported Methods

Razorpay Subscriptions is built on top of the Payment Gateway to automate recurring billing.

Subscription Pricing Model

• 0.99% (approx. 1%) subscription fee per transaction
  
• Plus, the underlying payment method fee

For example:
If a recurring credit card payment is charged at 2%, the total would be:
2% (gateway fee) + 0.99% (subscription fee) + GST on applicable components.

Supported Recurring Methods

• UPI AutoPay
  
• NACH (Paper/e-NACH) – Pricing on request
  
• E-Mandate – Pricing on request
  
• Credit & Debit Cards (Recurring)

Clear Fee Summary

*Credit Card on UPI may include additional MDR components beyond Razorpay’s platform fee.

Key Billing Rules

Zero Upfront and Ongoing Fees

• No setup fee
  
• No annual maintenance charge
  
• No mandatory minimums
  
• Charges apply only to successful transactions
  

GST Application

• 18% GST applies only to Razorpay’s platform fee
  
• GST is not applied to the full transaction value
  

Settlement Timelines

• Domestic payments: Typically, T+2 business days
  
• International payments: Typically, T+7 business days
  
• Instant settlement options may be available at an additional cost

Conclusion

Razorpay follows a usage-based pricing model. Merchants pay a platform fee only when a transaction succeeds. There are no setup charges or annual maintenance charges under the standard plan.

Most domestic payment methods are priced at 2% + GST. EMI, premium cards, and certain alternative methods are priced at 3% + GST. International cards are priced at 3% + GST, while international bank transfers are priced at 1% + GST.

All fees are transactional and clearly defined. There are no hidden subscription charges for standard gateway usage.

Frequently Asked Questions (FAQs)

1. What is the ROI of using Razorpay Payment Gateway?

ROI (Return on Investment) from using Razorpay is measured by improvements in:

• Higher successful transaction rates
  
• Fewer payment failures
  
• Faster settlements
  
• Lower operational workload
  
• Multiple payment methods through a single integration

Even a 0.5-1% increase in success rate can materially impact revenue. For example, if a business processes ₹50 lakh per month, a 1% improvement can generate ₹50,000 in additional monthly revenue, while the gateway fee percentage remains unchanged.

Razorpay supports this through smart routing, real-time tracking, automated reconciliation, and fraud monitoring. ROI is not just about transaction cost; it is about revenue captured versus revenue lost due to failures.

2. Why does Razorpay charge 2% when UPI has Zero MDR?

UPI has Zero MDR as mandated for banks.

However, Razorpay is not a bank; it provides the technology infrastructure that enables businesses to collect UPI payments at scale. The 2% fee covers payment processing systems, routing, APIs, reporting, fraud monitoring, and settlement management.

Zero MDR does not mean zero cost. The fee charged by Razorpay is a platform service fee, not MDR.

3. Why do some gateways advertise “free UPI”?

Some platforms advertise “free UPI,” but costs may be recovered through settlement delays, bundled subscription plans, monthly minimums, or added service fees.

Businesses should verify whether the fee is truly 0%, whether there are minimum commitments, and whether settlements or add-on charges apply.

With Razorpay, pricing is transparent, and a flat percentage is charged only on successful transactions.

4. Why do EMI and international payments cost more?

EMI and international payments involve additional banking partners, cross-border processing, stricter compliance checks, currency conversion (for international transactions), and issuer/network-level charges.

These added layers increase the overall processing cost compared to standard domestic payments, which is why the fee is higher.

5. Is there any free payment gateway that I can choose for my business?

No genuinely free payment gateway exists in India. All gateways charge either:

• Transaction fees (TDR/MDR)
• Annual maintenance charges (AMC)
• Setup and activation fees
• Or a combination of these

Gateways advertising “free” or “0% fees” typically:

• Apply only to specific payment modes (e.g., UPI only)
• Have high fixed monthly/annual charges
• Limit transaction volumes before fees apply
• Add hidden costs later

6. What additional charges do other gateways typically have that Razorpay doesn’t?

Many legacy or budget gateways include:

• Setup Fees: (₹5,000 – ₹20,000 upfront)
• AMCs: (Annual charges regardless of usage)
• Minimum Monthly Fees: (Penalties if you don’t transact enough)
• Integration Audit Fees: (Charges for checking your website code)

Razorpay charges none of these.

7. For small businesses processing around ₹1 lakh per month, how should pricing be evaluated?

Even at lower volumes, Razorpay’s total cost remains competitive because there are no annual maintenance or setup charges. What appears cheaper on headline pricing can become costly once fixed fees are added.

Hypothetical Example: ₹1 lakh in monthly payment volume

Annual comparison:

• Razorpay @ 2% + ₹0 AMC: ₹2,000/month × 12 = ₹24,000/year
• Gateway at 1.6% + ₹4,999 AMC: (₹1,600/month × 12) + ₹4,999 = ₹24,199/year
• Gateway at 1.6% + ₹9,999 AMC: (₹1,600/month × 12) + ₹9,999 = ₹29,199/year

Even at small volumes, fixed annual fees can eliminate any apparent savings from a lower transaction rate.

Razorpay is designed to deliver industry-leading payment success rates, helping small businesses realise more revenue by reducing failed transactions. When every payment matters, higher reliability directly impacts cash flow and customer experience.

A gateway can look cheaper upfront and still cost more in practice.

8. Is there a transaction fee for standard UPI payments on Razorpay Payment Gateway?

No, there is Zero MDR (Merchant Discount Rate) on standard bank-to-bank UPI transactions. This means when a customer pays you directly from their bank account using any UPI app (Google Pay, PhonePe, Paytm, etc.), merchants are not charged a transaction fee by the bank. However, a standard platform or technology fee of 2% will be applied, which is for the dashboard, reporting tools, and the secure infrastructure provided by the Payment Gateway.

9. Are the payment gateway charges deducted on a per-transaction basis?

Yes. The transaction fee and applicable GST are automatically deducted from the customer’s payment at the source. The remaining amount is settled directly to your registered bank account according to your settlement cycle (typically T+1 or Instant).

10. Are there any hidden charges with Razorpay Payment Gateway?

No, we believe in complete transparency. There are no hidden fees for standard usage.

• Setup: ₹0
• Maintenance: ₹0
• Integration Support: ₹0

Optional value-added services, such as Instant Settlements, have clearly defined pricing that applies only when enabled.