Razorpay Subscriptions


Razorpay Subscriptions provides you the platform to set up and manage recurring payments. Recurring payments are payments that:

  • You can charge as per a fixed schedule
  • Do not require any intervention on the customer’s end as it is automated.

Using Razorpay Subscriptions you can automatically charge customers based on a billing cycle that you control. You can easily create and manage recurring payments and get instant alerts on payment activity as well as the status of subscriptions. Razorpay handles all the complexities of managing recurring payments on your behalf.

Note: The Subscriptions platform is based on Razorpay’s existing payment flow. If you are new to Razorpay, we recommend you to understand this flow before you read further.

Getting Started#

With Razorpay Subscriptions, you can bill customers periodically in the following simple steps:

  1. Define a plan that sets what amount should be billed and how often.
  2. Create a subscription for the selected plan with the start and end details.
  3. Create an authentication transaction (auth transaction). The auth transaction is an approval process that grants permission to charge the customer's card on a periodic basis. This is an important and mandatory step while creating a subscription.

The entire flow of creating a subscription is described in the section Creating Subscriptions.

Note: You need not create a customer to create a subscription. When the auth transaction is completed by a customer, we automatically create a new customer with the customer details and associate it with the subscription.

Subscriptions Payment Flow#

The payment flow in subscriptions takes place in the following way:

  1. Merchant creates different plans for their products/services.
  2. Customer selects the plan from the merchant site.
  3. Once the customer selects a plan from the merchant's website, a subscription on Razorpay is created and the subscription_id received in the response, is passed on to the Razorpay Checkout via the checkout options.
  4. On the Checkout form, the customer enters the card details and clicks Pay.
  5. This forms an auth transaction and on a successful payment, a customer is created and linked to the subscription!
  6. Automated charges on the subscription are now made as per the schedule defined by the plan.

How Recurring Payments Work#

Recurring payments do not require any intervention at the customer’s end. It is an automated payment collection system that requires one-time approval from the customer via the auth transaction. Following points summarizes recurring payments:

  • Customer’s approval is sought before recurring payments are collected. This approval process works just like normal payments with the 3D Secure authentication step. This is what we refer to as authentication transaction or simply 'auth transaction'.
  • Once the auth transaction has been successfully completed, the card is charged automatically at the start of every billing cycle.
  • For every recurring payment, an invoice is generated which includes customer and subscription details along with your branding.

Terms Used#

A plan allows you to define what should be billed, for what price and when. For example, you could define a plan for a particular service or a product, that is to be charged ₹1000 monthly or another product/service to be charged ₹12,000 yearly. You can define multiple plans and call it Basic, Intermediate, Pro and so on. Plans can be created via the Razorpay Dashboard as well as through APIs.
A subscription is created from a plan, customized for each customer. Subscription also defines the date at which the subscription should start and how long is the subscription for. You can also create subscriptions with trial period.
Auth Transaction
The auth transaction is a 3D secure authentication step before recurring payments are charged on your customer's card. It is an approval process from the customer who is subscribing to a plan and also a way to validate a card to which a subscription would be charged on a periodic basis. The auth transaction is an RBI mandate for all recurring payments in India.


How do recurring payments on Credit Cards work in India?
Recurring payments are allowed on MasterCard and Visa network credit cards provided the customer authorizes the first transaction through a normal Two-Factor Authentication/3DSecure flow.

How do recurring payments on Debit Cards work in India?
Recurring payments are allowed on Mastercard and Visa network cards issued by ICICI Bank, Kotak Mahindra Bank, Citibank and Canara Bank, provided the customer authorizes the first transaction through a normal Two-Factor Authentication/3DSecure flow.

How does the two-factor authentication (2FA) work with recurring payments?
The first transaction needs to go through the 2FA process. Further charges can be made automatically, without 2FA.

Which payment instruments support recurring payments?
Credit cards on MasterCard and Visa network issued by any bank in India. Debit cards on Mastercard and Visa network issued by ICICI Bank, Kotak Mahindra Bank, Citibank and Canara Bank.

One of my customers received this SMS from bank.
Your trx is debited to xxxx Bank CREDIT Card for Rs. xx.xx. This is not an authenticated trx as per RBI Mandate effective 1 May 12.
Some customers may receive such messages from the bank for subscription transactions. However, no need to worry about it as this communication is for information only. We assure you that all transactions on Razorpay are authorised as per RBI compliance.

How to edit a plan or subscription?
Currently, editing a plan or subscription is not available.