{"id":26027,"date":"2026-02-13T16:26:28","date_gmt":"2026-02-13T10:56:28","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=26027"},"modified":"2026-02-13T16:26:28","modified_gmt":"2026-02-13T10:56:28","slug":"razorpay-payment-gateway-pricing-explained","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/razorpay-payment-gateway-pricing-explained\/","title":{"rendered":"Razorpay Payment Gateway Pricing and Fees Explained"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article explains domestic pricing, international charges, subscription fees, billing rules, and common questions clearly and factually.<\/span><\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 15px; margin: 20px 0; border-radius: 5px;\">\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 8px 0; display: inline-block;\">Key Takeaways<\/h2>\n<ul style=\"display: inline-block; margin: 0 0 0 10px; padding-left: 18px; vertical-align: top;\">\n<li><strong>No setup fee or AMC:<\/strong> Razorpay charges only on successful transactions under its standard plan.<\/li>\n<li><strong>Domestic payment pricing:<\/strong> Most domestic payments are priced at 2% + 18% GST, including Credit Cards, Debit Cards, UPI, Netbanking, and Wallets.<\/li>\n<li><strong>Premium payment methods:<\/strong> EMI, Corporate Cards, Amex\/Diners, Pay Later, and certain premium methods are typically 3% + GST.<\/li>\n<li><strong>International payments:<\/strong> International cards are 3% + GST, while international bank transfers are 1% + GST.<\/li>\n<li><strong>GST applicability:<\/strong> GST applies only to the platform fee, not the full transaction amount.<\/li>\n<li><strong>Settlement timelines:<\/strong> Domestic payments usually settle in T+2 business days; international payments typically settle in T+7 business days.<\/li>\n<\/ul>\n<\/div>\n<h2><b>\u00a0Razorpay Payment Gateway &#8211; Domestic Fees<\/b><\/h2>\n<h3><b>Base Platform Fee \u2013 Standard Plan<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2%<\/b><span style=\"font-weight: 400;\"> of the successful transaction value for most domestic payment methods<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>18% GST<\/b><span style=\"font-weight: 400;\"> applies to the platform fee<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No setup fee<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No Annual Maintenance Charge (AMC)<\/b><\/li>\n<\/ul>\n<p><b>The platform fee covers:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment processing<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fraud detection and prevention<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transaction routing and optimisation<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dashboard reporting and reconciliation<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Settlement management<\/span><\/li>\n<\/ul>\n<h3><b>Domestic Payment Methods &amp; Pricing Table<\/b><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Payment Method<\/b><\/td>\n<td><b>Razorpay Platform Fee<\/b><\/td>\n<td><b>Critical Details &amp; Corrections<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Debit Cards (Standard)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Visa, Mastercard, Maestro. (Transaction value &gt; \u20b92000).<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Credit Cards (Standard)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Visa, Mastercard, Maestro.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">UPI (Standard)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Important: While the Govt charges 0% MDR, Razorpay charges a 2% Platform Fee for using their gateway technology (reconciliation, success rate optimization).<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">RuPay Debit Cards<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The government mandated Zero MDR for RuPay Debit cards specifically.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Netbanking<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Covers 58+ banks.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Debit Card EMI<\/span><\/td>\n<td><span style=\"font-weight: 400;\">1.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lower than standard Credit Card EMI.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cardless EMI<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Partners like ZestMoney and EarlySalary.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Credit Card on UPI (RuPay)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.15%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Slightly higher than standard UPI. Applies when a customer uses a RuPay Credit Card via a UPI app (e.g., PhonePe, GPay).<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Corporate \/ Business Cards<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Correction: Business credit cards are charged higher than consumer cards.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pay Later<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8220;Buy Now Pay Later&#8221; services like ePayLater, ICICI PayLater, etc.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Amex \/ Diners Club<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Correction: These premium international networks are charged at 3%, not 2%.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Wallets (Mobile Wallets)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2.00%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Covers major wallets such as JioMoney, MobiKwik, FreeCharge, Ola Money, etc.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b><br \/>\n<\/b><b>Note: Credit Card on UPI may include additional MDR components beyond Razorpay\u2019s platform fee.<\/b><\/p>\n<h3><b>Notes on EMI and Cardless EMI<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EMI includes both credit card and debit card EMI options.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cardless EMI includes financing products and UPI AutoPay EMI offerings.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cardless EMI transactions are generally charged at 3% + GST.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h3><b>GST Impact<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">All <a href=\"https:\/\/razorpay.com\/payment-gateway\/\">Razorpay payment gateway<\/a> platform fees attract <\/span><b>18% GST<\/b><span style=\"font-weight: 400;\"> on the fee amount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">2% platform fee becomes <\/span><b>2.36% total cost<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">3% platform fee becomes <\/span><b>3.54% total cost<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">GST is calculated only on the platform fee, not on the full transaction value.<\/span><\/p>\n<h2><b>Razorpay International Payments &#8211; Pricing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Razorpay allows businesses to accept payments from customers outside India through the <a href=\"https:\/\/razorpay.com\/accept-international-payments\/\">Razorpay International Payment Gateway<\/a> and <a href=\"https:\/\/razorpay.com\/accept-international-payments\/bank-transfers\/\">MoneySaver Export Account<\/a>.<\/span><\/p>\n<h3><b>International Credit &amp; Debit Cards<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>3%<\/b><span style=\"font-weight: 400;\"> of transaction value + GST<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Optional chargeback protection: <\/span><b>Additional 1%<\/b><span style=\"font-weight: 400;\"> (approx. total 4%)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Supports cards issued by international banks (Visa, Mastercard, Amex, Diners Club)<\/span><\/li>\n<\/ul>\n<h3><b>International Bank Transfers<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1%<\/b><span style=\"font-weight: 400;\"> of transaction value + GST<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product: MoneySaver Export Account<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Zero forex markup for merchants<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supports ACH, SEPA, SWIFT via virtual accounts<\/span><\/li>\n<\/ul>\n<h3><b>International Payment Methods (Wallets &amp; Local Methods)<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>3.5%<\/b><span style=\"font-weight: 400;\"> per transaction + GST<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Includes supported international wallets and alternative payment methods<\/span><\/li>\n<\/ul>\n<h3><b>Additional Notes on International Transactions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Foreign exchange conversion and partner bank fees may apply.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Settlement timeline: Typically, <\/span><b>T+7 business days<\/b><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic settlements generally occur faster.<\/span><\/li>\n<\/ul>\n<h2><b>Razorpay Subscriptions &#8211; Pricing and Supported Methods<\/b><\/h2>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/subscriptions\/\">Razorpay Subscriptions<\/a> is built on top of the Payment Gateway to automate recurring billing.<\/span><\/p>\n<h3><b>Subscription Pricing Model<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>0.99% (approx. 1%) subscription fee per transaction<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plus, the underlying payment method fee<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> If a recurring credit card payment is charged at 2%, the total would be:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> 2% (gateway fee) + 0.99% (subscription fee) + GST on applicable components.<\/span><\/p>\n<h3><b>Supported Recurring Methods<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/razorpay.com\/upi-autopay\/\"><span style=\"font-weight: 400;\">UPI AutoPay<\/span><\/a><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NACH (Paper\/e-NACH) &#8211; Pricing on request<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">E-Mandate &#8211; Pricing on request<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit &amp; Debit Cards (Recurring)<\/span><\/li>\n<\/ul>\n<h2><b>Clear Fee Summary<\/b><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Category<\/b><\/td>\n<td><b>Fee (Razorpay Payment Gateway Platform Only)<\/b><\/td>\n<td><b>GST<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Domestic Cards (Credit &amp; Debit)<\/span><\/td>\n<td><b>2%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">UPI (standard)<\/span><\/td>\n<td><b>2%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Netbanking<\/span><\/td>\n<td><b>2%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Wallets<\/span><\/td>\n<td><b>2%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pay Later<\/span><\/td>\n<td><b>2%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Credit Card on UPI<\/span><\/td>\n<td><b>2.15*<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">EMI \/ Cardless EMI<\/span><\/td>\n<td><b>3%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">International Cards<\/span><\/td>\n<td><b>3%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">International Bank Transfer<\/span><\/td>\n<td><b>1%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">International Payment Methods (wallets, local methods)<\/span><\/td>\n<td><b>3.5%<\/b><\/td>\n<td><span style=\"font-weight: 400;\">+18% GST<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*<b>Credit Card on UPI may include additional MDR components beyond Razorpay\u2019s platform fee.<\/b><\/p>\n<h2><b>Key Billing Rules<\/b><\/h2>\n<h3><b>Zero Upfront and Ongoing Fees<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No setup fee<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No annual maintenance charge<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No mandatory minimums<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Charges apply only to successful transactions<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h3><b>GST Application<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">18% GST applies only to Razorpay\u2019s platform fee<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GST is not applied to the full transaction value<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h3><b>Settlement Timelines<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic payments: Typically, <\/span><b>T+2 business days<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">International payments: Typically, <\/span><b>T+7 business days<\/b><b><br \/>\n<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Instant settlement options may be available at an additional cost<\/span><\/li>\n<\/ul>\n<h1><b>Conclusion<\/b><\/h1>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most domestic payment methods are priced at <\/span><b>2% + GST<\/b><span style=\"font-weight: 400;\">. EMI, premium cards, and certain alternative methods are priced at <\/span><b>3% + GST<\/b><span style=\"font-weight: 400;\">. International cards are priced at <\/span><b>3% + GST<\/b><span style=\"font-weight: 400;\">, while international bank transfers are priced at <\/span><b>1% + GST<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All fees are transactional and clearly defined. There are no hidden subscription charges for standard gateway usage.<\/span><\/p>\n<div style=\"background: #f5faff; border-radius: 14px; padding: 28px 24px; text-align: center; margin: 0; box-shadow: 0 8px 20px rgba(26,115,232,0.08);\">\n<h2 style=\"color: #1a73e8; font-size: 24px; font-weight: bold; margin: 0 0 10px 0;\"><strong>Ready to streamline your payments?<\/strong><\/h2>\n<p style=\"color: #444; font-size: 16px; max-width: 720px; margin: 0 auto 16px auto; line-height: 1.6;\">Scale your business with a gateway that supports 100+ payment methods, including UPI, Credit Cards, and Netbanking. Transition to a reliable infrastructure designed to improve transaction success rates and automate your daily reconciliation.<\/p>\n<p><a style=\"display: inline-block; background: #1a73e8; color: #ffffff; padding: 14px 26px; font-size: 16px; font-weight: bold; border-radius: 10px; text-decoration: none;\" href=\"https:\/\/razorpay.com\/payment-gateway\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=paymentgateway\">Get Started with Razorpay<br \/>\n<\/a><\/p>\n<\/div>\n<h2><b>Frequently Asked Questions (FAQs)<\/b><\/h2>\n<h3><b>1. What is the ROI of using Razorpay Payment Gateway?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">ROI (Return on Investment) from using <\/span><b>Razorpay<\/b><span style=\"font-weight: 400;\"> is measured by improvements in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher successful transaction rates<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fewer payment failures<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Faster settlements<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower operational workload<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiple payment methods through a single integration<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even a <\/span><b>0.5-1% increase in success rate<\/b><span style=\"font-weight: 400;\"> can materially impact revenue. For example, if a business processes \u20b950 lakh per month, a 1% improvement can generate \u20b950,000 in additional monthly revenue, while the gateway fee percentage remains unchanged.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Razorpay supports this through smart routing, real-time tracking, automated reconciliation, and fraud monitoring. ROI is not just about transaction cost; it is about <\/span><b>revenue captured versus revenue lost due to failures.<\/b><\/p>\n<h3><b>2. Why does Razorpay charge 2% when UPI has Zero MDR?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">UPI has <\/span><b>Zero MDR<\/b><span style=\"font-weight: 400;\"> as mandated for banks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, <\/span><b>Razorpay<\/b><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Zero MDR does not mean zero cost. The fee charged by Razorpay is a <\/span><b>platform service fee<\/b><span style=\"font-weight: 400;\">, not MDR.<\/span><\/p>\n<h3><b>3. Why do some gateways advertise \u201cfree UPI\u201d?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Some platforms advertise \u201cfree UPI,\u201d but costs may be recovered through settlement delays, bundled subscription plans, monthly minimums, or added service fees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses should verify whether the fee is truly 0%, whether there are minimum commitments, and whether settlements or add-on charges apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With <\/span><b>Razorpay<\/b><span style=\"font-weight: 400;\">, pricing is transparent, and a flat percentage is charged only on successful transactions.<\/span><\/p>\n<h3><b>4. Why do EMI and international payments cost more?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">EMI and international payments involve additional banking partners, cross-border processing, stricter compliance checks, currency conversion (for international transactions), and issuer\/network-level charges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These added layers increase the overall processing cost compared to standard domestic payments, which is why the fee is higher.<\/span><\/p>\n<h3><b>5. Is there any free payment gateway that I can choose for my business?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No genuinely free payment gateway exists in India. All gateways charge either:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Transaction fees (TDR\/MDR)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Annual maintenance charges (AMC)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Setup and activation fees<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Or a combination of these<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Gateways advertising &#8220;free&#8221; or &#8220;0% fees&#8221; typically:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Apply only to specific payment modes (e.g., UPI only)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Have high fixed monthly\/annual charges<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Limit transaction volumes before fees apply<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Add hidden costs later<\/span><\/li>\n<\/ul>\n<h3><b>6. What additional charges do other gateways typically have that Razorpay doesn&#8217;t?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many legacy or budget gateways include:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Setup Fees: (\u20b95,000 &#8211; \u20b920,000 upfront)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> AMCs: (Annual charges regardless of usage)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Minimum Monthly Fees: (Penalties if you don&#8217;t transact enough)<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Integration Audit Fees: (Charges for checking your website code)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Razorpay charges none of these.<\/span><\/p>\n<h3><b>7. For small businesses processing around \u20b91 lakh per month, how should pricing be evaluated?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Even at lower volumes, Razorpay&#8217;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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hypothetical Example: \u20b91 lakh in monthly payment volume<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Annual comparison:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Razorpay @ 2% + \u20b90 AMC: \u20b92,000\/month \u00d7 12 = \u20b924,000\/year<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Gateway at 1.6% + \u20b94,999 AMC: (\u20b91,600\/month \u00d7 12) + \u20b94,999 = \u20b924,199\/year<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Gateway at 1.6% + \u20b99,999 AMC: (\u20b91,600\/month \u00d7 12) + \u20b99,999 = \u20b929,199\/year<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even at small volumes, fixed annual fees can eliminate any apparent savings from a lower transaction rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A gateway can look cheaper upfront and still cost more in practice.<\/span><\/p>\n<h3><b>8. Is there a transaction fee for standard UPI payments on Razorpay Payment Gateway?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3><b>9. Are the payment gateway charges deducted on a per-transaction basis?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. The transaction fee and applicable GST are automatically deducted from the customer&#8217;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).<\/span><\/p>\n<h3><b>10. Are there any hidden charges with Razorpay Payment Gateway?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No, we believe in complete transparency. There are no hidden fees for standard usage.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Setup: \u20b90<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Maintenance: \u20b90<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Integration Support: \u20b90<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Optional value-added services, such as Instant Settlements, have clearly defined pricing that applies only when enabled.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the ROI of using Razorpay Payment Gateway?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"ROI (Return on Investment) from using Razorpay is measured through higher successful transaction rates, fewer payment failures, faster settlements, lower operational workload, and multiple payment methods through a single integration. Even a 0.5\u20131% increase in success rate can materially impact revenue. For example, if a business processes \u20b950 lakh per month, a 1% improvement can generate \u20b950,000 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.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Why does Razorpay charge 2% when UPI has Zero MDR?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"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.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Why do some gateways advertise 'free UPI'?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"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.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Why do EMI and international payments cost more?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"EMI and international payments involve additional banking partners, cross-border processing, stricter compliance checks, currency conversion for international transactions, and issuer or network-level charges. These added layers increase the overall processing cost compared to standard domestic payments, which is why the fee is higher.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is there any free payment gateway that I can choose for my business?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No genuinely free payment gateway exists in India. All gateways charge either transaction fees (TDR or 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, have high fixed monthly or annual charges, limit transaction volumes before fees apply, or add hidden costs later.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What additional charges do other gateways typically have that Razorpay doesn't?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Many legacy or budget gateways include setup fees ranging from \u20b95,000 to \u20b920,000 upfront, annual maintenance charges regardless of usage, minimum monthly fees if transaction volumes are low, and integration audit fees for checking website code. Razorpay charges none of these.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"For small businesses processing around \u20b91 lakh per month, how should pricing be evaluated?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Even at lower volumes, Razorpay's total cost remains competitive because there are no annual maintenance or setup charges. For example, at \u20b91 lakh monthly volume, Razorpay at 2% with no AMC equals \u20b924,000 annually. A gateway at 1.6% plus \u20b94,999 AMC equals \u20b924,199 annually, while 1.6% plus \u20b99,999 AMC equals \u20b929,199 annually. Fixed annual fees can eliminate apparent savings from lower transaction rates. Higher payment success rates also directly impact revenue, cash flow, and customer experience.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is there a transaction fee for standard UPI payments on Razorpay Payment Gateway?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"There is Zero MDR on standard bank-to-bank UPI transactions, meaning banks do not charge merchants a transaction fee. However, a standard 2% platform or technology fee applies for the dashboard, reporting tools, and secure infrastructure provided by the payment gateway.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are the payment gateway charges deducted on a per-transaction basis?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes. The transaction fee and applicable GST are automatically deducted from the customer's payment at the source. The remaining amount is settled to your registered bank account according to your settlement cycle, typically T+1 or Instant.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are there any hidden charges with Razorpay Payment Gateway?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. Razorpay follows a transparent pricing model with no hidden fees for standard usage. Setup is \u20b90, maintenance is \u20b90, and integration support is \u20b90. Optional value-added services such as Instant Settlements have clearly defined pricing that applies only when enabled.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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,<\/p>\n","protected":false},"author":174,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[1134,1133,197],"class_list":{"0":"post-26027","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-payments","7":"tag-fees","8":"tag-pricing","9":"tag-razorpay-payment-gateway"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=26027"}],"version-history":[{"count":4,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26027\/revisions"}],"predecessor-version":[{"id":26031,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/26027\/revisions\/26031"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=26027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=26027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=26027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}