Razorpay Payment Gateway: Charges, Activation and Setup

Razorpay charges in 2026

Rates as listed on Razorpay’s public pricing page on 12 October 2026. GST of 18% applies to the fee. Businesses with high volumes can ask Razorpay for custom pricing.

What you actually receive: an example

On a ₹2,000 order paid by UPI: Razorpay’s fee is ₹40 (2%), GST on the fee is ₹7.20, so ₹1,952.80 is settled to your bank. On ₹1 lakh of monthly sales, total fees are about ₹2,360.

Documents needed to activate Razorpay

• PAN of the business (and of the owner for proprietorships)
• Business proof — GST certificate, Udyam, shop licence or incorporation documents, depending on business type
• Bank account in the business name (current account recommended) and a cancelled cheque or statement
• Address proof and ID of the authorised signatory
• A live website or app with your products or services, prices and contact details
• Policy pages: privacy, terms, refunds and cancellations, shipping or delivery

Missing policy pages and unclear business descriptions are the most common reasons for activation delays.

Integrating Razorpay on your website

How integration works on the most common platforms.

• Time: 1–3 days after activation

You'll need: Razorpay account · API keys (test and live) · Website admin access

1. Generate API keys

   In the Razorpay dashboard, create test keys first. Keep the secret key on the server only — never in front-end code or public repositories.

2. Choose the integration

   WooCommerce: official plugin. Shopify: Razorpay app as an additional payment method. Custom websites: create an order on your server, open Razorpay Checkout, and verify the payment signature on your server.

3. Add webhooks

   Configure webhooks for payment captured, failed and refunded events so orders update reliably even if the customer’s browser closes.

4. Test every path

   Simulate successful payments, failures, cancellations and refunds with test cards and test UPI.

5. Go live

   Swap to live keys, place a small real order, and confirm the settlement reaches your bank.

Useful Razorpay products beyond checkout

• Payment links — send a link on WhatsApp or SMS for phone orders and invoices.
• Payment pages — simple hosted pages for events, donations or fixed-price services.
• Subscriptions — recurring billing for memberships and SaaS.
• QR codes — dynamic or static QR for counters and deliveries.
• Instant settlements — faster access to funds at an extra cost.

Razorpay vs other gateways

Razorpay is popular for its developer tools, documentation and range of products. PhonePe, Cashfree, PayU and CCAvenue are strong alternatives with similar standard pricing. Choose on approval speed, payment success rate, settlement time, support and the integrations your platform offers. See the full payment gateway charges comparison.

Security checklist for Razorpay integrations

• Verify payment signatures on the server before marking orders paid.
• Never trust the amount sent from the browser — create orders server-side.
• Store API secrets in environment variables, not code.
• Protect webhooks with the webhook secret and check event IDs to avoid duplicates.
• Log payment events so support can trace any customer complaint.

We see AI-built and hurried integrations skip these steps — leaving stores open to fake “paid” orders. Our team in Gachibowli, Hyderabad reviews and fixes such integrations.

Refunds, chargebacks and disputes

Refunds can be issued from the Razorpay dashboard or through the API, fully or partially. On the standard plan there is no refund processing fee, but the original transaction fee is generally not returned. Chargebacks happen when a customer disputes a card payment with their bank; you will be asked to submit proof such as the invoice, delivery confirmation and communication. Keeping clear policies, delivery tracking and order records makes disputes much easier to win.

Common Razorpay problems we fix

• Orders stuck as “pending” because webhooks were never configured.
• Duplicate orders when both the redirect and the webhook create an order.
• Test keys left in production, so payments never actually reach the account.
• Activation on hold because policy pages or business details are missing.
• Wrong amounts when prices are taken from the browser instead of the server.

Frequently asked questions

What people ask AI about this

Questions people type into ChatGPT, Gemini and Google — answered directly.