Last updated 30 October 2026. Fees, settlement times and documents seen on Razorpay’s and PayU’s official India pages on 28 and 30 October 2026.
Razorpay vs PayU is the question most Indian small businesses ask when they first want to take online payments. Both are large Indian payment gateways, both charge no setup or annual fee, and both publish a 2% standard rate. So the choice comes down to the details that most comparison pages skip: what UPI really costs you, what 18% GST does to the fee, how quickly money reaches your bank, and which documents each one asks for.
Fee maths before you sign
| 2.36%2% standard fee, with GST | up to 3.54%premium cards (3% + GST) | T+2standard settlement, both |
- UPI is the real difference: Razorpay charges a 2% platform fee on UPI; PayU’s UPI rate is “on quote”, so get it in writing.
- Instant settlement on Razorpay costs 0.20%–0.30% (same-day 0.15%–0.20%). On ₹5 lakh, instant adds ₹1,180–₹1,770 with GST.
- Razorpay accounts activated from 1 July 2026 pay 0% on the first ₹5 lakh or 90 days, worth up to ₹11,800 including GST.
- Instant refunds cost ₹7.99–₹14.99 each. Neither publishes its chargeback fee, so ask.
- Taking UPI only at the counter? Razorpay’s UPI QR is 0.99%; your bank’s QR is free.
- If you switch, subscription mandates do not move with you; customers have to re-authorise.
Checked 28 October 2026.
Disclosure: This page has no affiliate links. ScaleSaathi earns nothing if you sign up with Razorpay or PayU. Read our affiliate disclosure and editorial policy.
Our verdict: for most small Indian businesses selling online, Razorpay is the easier starting point. Every standard rate is published, its instant and same-day settlement price is published (0.15% to 0.30%), unregistered sellers can sign up, and new accounts activated from 1 July 2026 get 0% platform fee on the first ₹5 lakh or 90 days. Choose PayU when most of your payments come by UPI and PayU’s written UPI quote is lower than Razorpay’s 2%, or when you sell high volumes and want to negotiate. On cards and netbanking the two publish the same 2%.
Every fee is shown before GST and with 18% GST; rates seen 30 October 2026.
In this comparison
Razorpay vs PayU at a glance
| Razorpay | PayU | |
|---|---|---|
| Standard rate (cards, netbanking, wallets) | 2% (2.36% with GST) | 2% (2.36% with GST) |
| UPI | 2% platform fee on Standard plan (2.36% with GST) | On quote (“varies by business type and volume”) |
| Amex, Diners, EMI, international | 2%–3% (Razorpay pages differ; up to 3.54% with GST) | 3% (3.54% with GST) |
| Setup fee / annual fee | ₹0 / ₹0 | ₹0 / ₹0 (T&C apply) |
| Standard settlement | T+2 working days | T+2 |
| Faster settlement | Published: instant 0.20%–0.30%, same-day 0.15%–0.20% | Priority settlement T+15 min to T+1, on quote |
| Instant refund fee | ₹7.99 to ₹14.99 per refund | Not published |
| Chargeback fee (India) | Not published | Not published |
| Payment methods | UPI, cards, 72+ netbanking banks, wallets, EMI, Pay Later | 150+ methods incl. UPI, cards, netbanking, wallets, EMI, BNPL |
| Welcome offer | 0% platform fee on first ₹5 lakh or 90 days (new accounts from 1 July 2026) | None published |
Pick Razorpay if…
you want every price in writing before you sign, you are a freelancer or not yet GST-registered, or you need money the same day at a known cost.
Pick PayU if…
most of your sales come by UPI and PayU quotes you less than 2% for it, or your volume is high enough to negotiate a custom rate.
Fees by payment method, before and with GST
Gateways take their fee from each successful payment, then add 18% GST on that fee. A 2% fee therefore costs you 2.36% of the sale, and a 3% fee costs 3.54%. On a ₹10,000 payment that is ₹200 + ₹36 GST = ₹236 at 2%, or ₹300 + ₹54 GST = ₹354 at 3%. You can claim this GST as input tax credit if you are GST-registered. Check the maths with our GST calculator.
| Payment method | Razorpay fee | With 18% GST | PayU fee | With 18% GST |
|---|---|---|---|---|
| UPI (incl. RuPay debit) | 2% platform fee | 2.36% | On quote | On quote |
| RuPay credit card on UPI | 2% | 2.36% | On quote | On quote |
| Visa / Mastercard debit and credit | 2% | 2.36% | 2% | 2.36% |
| Netbanking | 2% | 2.36% | 2% | 2.36% |
| Wallets, Pay Later / BNPL | 2% | 2.36% | 2% | 2.36% |
| Corporate / business credit cards | 2.15% (pricing page) or 3% (Payments app page) | 2.54%–3.54% | Not listed separately | — |
| Amex, Diners, EMI | 2% (pricing page) or 3% (Payments app page) | 2.36%–3.54% | 3% | 3.54% |
| International cards | Up to 3% | Up to 3.54% | 3% | 3.54% |
| Setup fee, annual fee | ₹0 | ₹0 | ₹0 | ₹0 |
Note on Razorpay’s premium cards: Razorpay’s India pricing reference (marked “Last updated May 2026”) lists Amex, Diners and EMI at 2% and corporate cards at 2.15%, while its Payments app page says Diners, Amex, international, EMI and corporate credit cards are charged at 3%. Both are official pages. Plan on 3% and confirm the rate on your own account’s rate card. For a full breakdown see our Razorpay charges guide and payment gateway pricing page.
UPI: the one fee that really differs
UPI payments carry zero MDR, but gateways can still charge their own platform fee. Razorpay says this openly: on the Standard plan, UPI and RuPay debit have zero MDR but its 2% platform fee applies. PayU’s pricing page does not give a number. It says UPI pricing “varies by business type and transaction volume”.
That makes UPI the deciding line for many shops, tutors and D2C brands, where most customers pay by UPI. Ask PayU for its UPI rate in writing and compare it with 2%. If you mainly collect UPI in person, a free static QR from your bank or our UPI QR code generator may cost you nothing; Razorpay’s own UPI QR product is 0.99%.
What you pay each month: worked examples
These use only published rates for card, netbanking and wallet payments, where both charge 2%. UPI is left out because PayU does not publish a UPI rate.
| Monthly card/netbanking/wallet sales | Fee at 2% (both) | GST at 18% | Total with GST |
|---|---|---|---|
| ₹1,00,000 | ₹2,000 | ₹360 | ₹2,360 |
| ₹5,00,000 | ₹10,000 | ₹1,800 | ₹11,800 |
| ₹10,00,000 | ₹20,000 | ₹3,600 | ₹23,600 |
If you are a new Razorpay merchant activated on or after 1 July 2026, the welcome offer waives the platform fee on your first ₹5,00,000 of payments or 3 months, whichever comes first. Some methods, such as corporate cards, Amex, Diners and EMI, are excluded. On ₹5 lakh of eligible 2% payments, that saves up to ₹11,800 including GST.
Settlement time and instant settlement cost
| Razorpay | PayU | |
|---|---|---|
| Standard domestic settlement | T+2 working days, in INR (settlement docs); “typically T+1 or Instant” (pricing page) | T+2 (pricing page) |
| Same-day settlement | 0.15%–0.20% + GST | Part of priority settlement, on quote |
| Instant / on-demand | 0.20%–0.30% + GST, within seconds, including holidays; minimum ₹100; daily limit applies; on request | As fast as T+15 minutes up to T+1, 24×7 including holidays; fee depends on cycle and profile |
| International payments | T+7 in the worked example in its settlement docs; a reserve may be held; instant settlement not available | Settled in INR in T+2 |
On ₹5 lakh a month, Razorpay’s instant settlement at 0.20% to 0.30% adds ₹1,000 to ₹1,500 plus GST (₹1,180 to ₹1,770). Only pay for it if waiting two days really hurts your cash flow. Razorpay’s own pages disagree on the default: its pricing page says “typically T+1”, its settlement docs say T+2 working days (both seen 30 October 2026). Plan cash on T+2 and ask which cycle your account is on. PayU’s priority settlements page offers cycles from T+15 minutes to T+1, including weekends, but the fee is on quote, so get it in writing before you compare it with Razorpay’s published 0.20% to 0.30%. More options are in our instant settlement payment gateway guide.
Refunds, payouts and chargebacks
| Razorpay | PayU | |
|---|---|---|
| Normal refund | ₹0 processing fee | No fee listed on the pricing page |
| Instant refund | ₹7.99 (up to ₹1,000), ₹11.99 (₹1,000–₹25,000), ₹14.99 (above ₹25,000) + GST | Refund within about 5 minutes; fee not published |
| Payouts to vendors, staff | RazorpayX plans per quarter + GST: Core ₹2,476, Pro ₹14,866, Pro + API ₹24,778, Vendor Payments ₹34,688 | Pricing depends on volume, on quote |
| Chargeback fee (India) | Not published; dispute process documented | Not published; chargeback section in dashboard |
A chargeback is when a customer’s bank reverses a payment. Neither gateway publishes an India chargeback fee, so ask for it in writing before you sign, along with how long you get to send proof of delivery.
Subscriptions, plans and offers
- Razorpay plans: Standard (published rates above) and custom Enterprise pricing, which Razorpay suggests for volumes above ₹5 lakh a month.
- PayU plans: Standard (2% / 3%) and an Enterprise plan with custom pricing.
- Recurring payments: Razorpay Subscriptions show a limited-time 0.5% (down from 0.9%) on top of the platform fee on every subscription payment (seen 30 October 2026); UPI AutoPay, NACH and e-mandate pricing is on request. PayU offers recurring payments but does not publish their price.
- Extras at Razorpay: Payment Pages and Buttons (no-code) 0.2% plus the gateway fee; Smart Collect 1% or ₹10, whichever is lower; Route (split payments) 0.1% plus fees.
Payment methods, plugins and international
- Methods: both accept UPI, debit and credit cards, netbanking, wallets, EMI and pay-later. PayU says it supports 150+ payment methods.
- Plugins: both have official WooCommerce plugins on WordPress.org (Razorpay, PayU). PayU documents a Shopify integration; check Shopify’s payment settings for Razorpay. Both have APIs for custom sites and apps.
- International: Razorpay accepts cards from 180+ countries in 135 currencies at up to 3% with e-FIRC included, and offers a multi-currency account at 1% with no FX markup. PayU accepts 135+ currencies, including PayPal, Visa, Mastercard and Amex, settles in INR in T+2, and its international page says “nominal charges” apply; its pricing page lists international at 3%.
- Support: Razorpay lists 24/7 email and phone support and a checkout in Hindi, Tamil, Telugu, Gujarati and Marathi. PayU provides support through its dashboard and account managers.
KYC documents checklist
| Document | Razorpay | PayU |
|---|---|---|
| PAN | Your own PAN (individual / proprietor); business PAN plus signatory PAN for companies | Required |
| Address / identity | Aadhaar through CKYC, DigiLocker or video KYC | Address proof such as masked Aadhaar |
| Bank account | Verified with a ₹1 test deposit | Cancelled cheque or 3-month bank statement |
| Business proof | GST certificate or Udyam, plus one of shop establishment, IEC or postpaid bill (registered businesses) | Two government proofs in the business name for proprietors, e.g. GSTIN, Udyam, IEC, FSSAI, ITR, shop establishment |
| Unregistered sellers | Allowed as individuals | Business proofs needed |
| Extras | Industry documents if asked | Industry documents, UBO declaration; names must match |
Keep your GST invoices in order from day one; our GST invoice format guide helps.
PayU Money vs PayU Biz
Older articles still compare Razorpay with “PayUmoney” and “PayUbiz” as two different products. PayU Money was the simpler, self-serve account for small sellers; PayU Biz was the full gateway for larger businesses. Today PayU runs a single merchant dashboard on PayU’s site with a Standard and an Enterprise plan, and the old PayUmoney page no longer loads. PayU’s own Shopify guide still says to pick “PayU Money” in Shopify if you were onboarded on PayU Money, and “PayU India” if you were onboarded on PayUbiz.
Who should pick which
Freelancer or new seller, no GST yet
Razorpay. It allows unregistered individuals, publishes every standard rate and has the 90-day welcome offer.
Mostly UPI sales
Get PayU’s UPI quote. If it is below 2%, PayU is likely cheaper; if not, the two cost about the same.
Need money the same day
Razorpay, because the instant and same-day price is published. Ask PayU for a priority settlement quote to compare.
High monthly volume
Ask both for Enterprise pricing and compare written quotes on UPI, cards and settlement.
Lots of refunds
Razorpay, where normal refunds are free and the instant refund fee is published.
Many Amex, EMI or foreign cards
Either: PayU’s 3% is clear, and Razorpay is 2%–3%. Compare your actual rate cards.
Five things to settle before you sign
Both companies publish the same 2% for most cards, so the contract, not the rate card, is where these two really differ for a small business. These are the questions I would put to each account manager by email.
- Your UPI price. Razorpay charges 2% on UPI on its Standard plan; PayU gives UPI on quote. On ₹5 lakh a month with 70% UPI, every 0.5% off the UPI rate saves ₹1,750 a month before GST. Get PayU’s number first and use it to ask Razorpay for a match.
- The settlement cycle on your account. T+1 or T+2 sounds minor. On ₹5 lakh a month it is about ₹16,000 more of your money sitting with the gateway on any given day.
- Holds and reserves. Either gateway can pause settlements during a KYC or risk review, or keep a reserve on international and high-refund business. Ask how long a hold can last, what triggers it and what releases it. Pre-order, travel, coaching and electronics sellers see this most.
- Chargebacks. Neither publishes an India chargeback fee. Ask the fee and the number of days you get to upload proof of delivery.
- Leaving. Ask whether there is a notice period, whether any reserve is kept after you close, and how long until it is released. You want this answer before you have a dispute, not after.
When to choose neither
If you only collect payments face to face, or a few customers pay you by UPI each week, you may not need a gateway at all. A UPI QR linked straight to your current account usually has no fee. A gateway earns its fee when you need a checkout on a website or app, card payments, automatic payment confirmations, payment links or refunds. Compare other options in our best payment gateway for small business guide. If Cashfree is on your shortlist too, our Cashfree vs Razorpay comparison covers its fees and sign-up offer.
Switching checklist
- Get the new gateway’s rate card in writing, including UPI, premium cards, settlement, refunds and chargebacks.
- Finish KYC and get the account activated before you touch your live site.
- Install the new plugin on a staging copy of your site and make a ₹1 test payment and a refund.
- Keep the old gateway active until all its pending settlements, refunds and chargebacks are closed.
- Move subscriptions carefully: existing card or UPI mandates usually cannot be transferred, so customers may need to re-authorise.
- Update payment links, QR codes, invoices and email templates.
- Download the old gateway’s transaction and GST invoice reports for your accounts.
- Watch the first two weeks of settlements against your bank statement.
Download the fee calculator
Download the Razorpay vs PayU fee calculator (Excel)
Type in your monthly sales and how your customers pay (UPI, normal cards and netbanking, or premium cards). The workbook works out each gateway’s fee before GST, the 18% GST, the total and what reaches your bank, with a table for ₹1 lakh to ₹25 lakh a month. Every rate is editable. Type PayU’s UPI quote in the yellow cell; until you do, it uses Razorpay’s rate as a placeholder and says so.
Frequently asked questions
Which is cheaper, Razorpay or PayU?
For cards, netbanking and wallets they publish the same standard rate: 2% plus 18% GST, which is ₹236 on a ₹10,000 payment. Amex, Diners, EMI and international cards are 3% at PayU (₹354 with GST); Razorpay’s own pages show 2% to 3% for these, so check your rate card. The real difference is UPI: Razorpay’s Standard plan charges its 2% platform fee on UPI, while PayU says UPI pricing varies by business type and volume and gives it on quote. If most of your customers pay by UPI, get PayU’s UPI quote in writing before you decide.
Do Razorpay and PayU charge a setup fee or annual fee?
No. On 28 October 2026 both pricing pages (Razorpay, PayU) say zero setup fee and zero annual maintenance charge on their standard plans. PayU adds “T&C apply”. You only pay a fee on each successful payment, plus 18% GST on that fee.
How fast do Razorpay and PayU settle money to my bank?
Both settle domestic payments on T+2 working days as standard. Razorpay sells faster settlement: on-demand instant settlement at 0.20% to 0.30% and same-day settlement at 0.15% to 0.20%, plus GST, with no setup fee. PayU offers priority settlement from as fast as T+15 minutes up to T+1, but the fee depends on the cycle and your business profile and is not published.
What documents do I need to open a Razorpay or PayU account?
Usually your PAN, your bank account details (a cancelled cheque or bank statement for PayU; Razorpay verifies with a ₹1 test deposit), an address proof, and business proof such as GST registration or Udyam, shop establishment certificate or IEC. PayU asks a sole proprietor for two government business proofs in the business name. Razorpay also lets unregistered individuals sign up. Both may ask for extra documents for some industries.
Is PayU Money the same as PayU Biz?
Not any more as separate products. PayU Money was the simple version for small sellers and PayU Biz was for larger businesses. Today PayU runs one merchant dashboard on PayU’s site with a Standard plan and an Enterprise plan, and old PayUbiz users log in there with the same email. You may still see a “PayU Money” option on Shopify, which is for merchants who were originally onboarded on PayU Money.
Do Razorpay and PayU work with WooCommerce and Shopify?
Yes. Both have official WooCommerce plugins on WordPress.org (Razorpay for WooCommerce and PayU India), and PayU documents a Shopify integration; check Shopify’s payment provider list for Razorpay in your store. Test a live ₹1 payment and a refund after you install either one.
Which settles international payments faster, Razorpay or PayU?
PayU’s international payments page says it settles in INR in T+2. Razorpay’s settlement documentation uses a T+7 cycle in its international example and notes a reserve may be held, and its instant settlement does not cover international payments (seen 30 October 2026). If overseas buyers are a large share of your sales, ask both for your actual international cycle before you choose.
Related guides
- Best payment gateway for small business in India
- Razorpay charges
- Instant settlement payment gateways in India
- Payment gateway pricing
- UPI QR code generator
- GST calculator
- GST invoice format
- All comparisons
Sources and further reading
- Razorpay pricing (India rate reference): platform fee, methods, refunds, payouts, subscriptions
- Razorpay Payments app: premium methods at 3%, support, checkout languages
- Razorpay instant and same-day settlement pricing
- Razorpay settlements: T+2 standard cycle
- Razorpay instant settlement rules
- Razorpay disputes and chargebacks
- Razorpay account setup and KYC documents
- Razorpay 90-day welcome offer terms
- PayU pricing: Standard and Enterprise plans, settlement
- PayU priority settlements
- PayU instant refunds
- PayU payouts
- PayU international payments
- PayU documents checklist for account activation
- PayU merchant overview (PayUbiz users)
- Razorpay for WooCommerce plugin
- PayU India WooCommerce plugin
Fees seen on the official pages above on 28 and 30 October 2026, before GST unless stated. PayU’s UPI rate, priority settlement fee and both companies’ India chargeback fees are not published (on quote).
Product names and logos are trademarks of their respective owners. They are shown only to identify the products compared in this comparison, and their use does not imply endorsement by or affiliation with ScaleSaathi.