Razorpay Charges Explained: Fees, GST and Settlement (2026)

The simplest way to make sense of Razorpay charges is to follow one payment: what your customer pays, what Razorpay keeps, and what lands in your bank. And the amount shown as a successful payment isn’t always money you can spend that same day.

Last updated: 28 October 2026 · 28 Oct 2026. Prices checked on 28 October 2026 on Razorpay’s India pricing page (which itself says “Last updated: May 2026”).

Below, you can check what your payment method costs, whether a welcome offer applies to you, what refunds cost and how long the money takes to arrive. There’s also a free Excel calculator where you can swap our examples for your own rates. It keeps fees, money you’ve refunded and money still waiting to be settled in separate columns, so they don’t get mixed up.

Everything here is about the online Payment Gateway. These percentages don’t apply to RazorpayX payouts, card machines, payroll or Razorpay’s other services. For a broader shortlist, read our payment gateway guide for small businesses. If you are weighing Razorpay against Cashfree, our Cashfree vs Razorpay comparison puts both on the same three-year cost.

Razorpay charges: start with the right payment method

The headline rate is a starting point. Read the fee schedule for the method your customer actually uses. An ordinary bank-account UPI payment and a credit-card payment made through UPI are different categories.

The main pricing FAQ uses broad 2% wording, while other official product pages identify higher-rate methods. Treat the method-specific notes as an important check, not an assumption that everything costs 2%. Ask Razorpay to confirm any category that is unclear in your commercial agreement.

The calculations below assume ordinary paid pricing. They do not automatically apply a temporary offer, negotiated rate, international currency conversion or any separate service charge.

Razorpay charges by payment method (India, checked 25 October 2026)

Every fee below is before GST. Razorpay adds 18% GST on the fee, not on your whole sale. Source: Razorpay pricing, India rate card.

Razorpay’s own pages do not all agree. The main pricing page lists most domestic methods at 2%. Razorpay’s payments-app and e-commerce pages put Amex, Diners, international cards, EMI and corporate cards at 3% (3.54% with GST). Until you see your rate, budget for the higher figure on these methods. Your Razorpay Dashboard shows the rate that actually applies to your account.

Worked example: ₹100 and ₹1,000 payments

How the ₹1,000 line works: 2% of ₹1,000 is ₹20. GST of 18% on ₹20 is ₹3.60. Razorpay deducts ₹23.60 in total, so ₹976.40 reaches your bank before any refunds, chargebacks or other adjustments. At 2% plus GST the effective cost is 2.36% of the payment; at 3% it is 3.54%.

A ₹10,000 payment: fee, GST and money left

Suppose the full amount successfully collected from a customer is ₹10,000, and your applicable rate is 2% before GST. The calculation is:

Razorpay’s GST explanation applies the 18% to its fee, not as another 18% deduction from the whole customer payment. GST on what your business sells is a separate matter. Do not mix the two taxes together.

The combined deduction in this example is 2.36% of the collected amount. For comparison, a 3% fee with the same GST assumption becomes 3.54%; on ₹10,000, that is ₹354, leaving ₹9,646. A 2.15% fee becomes 2.537%, or ₹253.70 on ₹10,000.

Start from the actual payment amount. For example, if a ₹10,000 item plus tax and delivery produces an ₹11,800 customer payment, do not automatically calculate the gateway fee on ₹10,000. Check the chargeable base on the payment record.

These are cash-deduction examples, not profit calculations. Product cost, delivery, your own taxes and other business costs still exist. The calculator does not decide whether you can claim input tax credit.

Razorpay products and prices (checked 28 October 2026)

These are the prices Razorpay shows on its official pages. One thing that trips people up: the 18% GST is charged on Razorpay’s fee, not on your sale. Where you see “Not published”, Razorpay only shares that price if you ask. We took these from Razorpay pricing, instant settlements and payments app.

Does UPI mean there are no Razorpay charges?

Not necessarily. Razorpay’s UPI pricing explanation distinguishes zero bank-level MDR from its platform or technology fee. MDR means merchant discount rate: a payment-acceptance charge. A zero-MDR label does not, by itself, mean the gateway service has no cost.

Ask one simple question: “For this payment route, what will you deduct from ₹1,000 collected?” Ask for the fee and tax separately. That gives you a clearer answer than comparing labels such as free UPI, zero MDR or free integration.

Also check whether you need a website checkout, payment link, reconciliation reports or only a direct bank-payment arrangement. Those are not identical services. Compare the workflow and written charges you actually need, rather than assuming every QR or UPI setup costs the same.

The 90-day offer: check the limits, not just 0%

Razorpay’s published welcome-offer terms cover eligible new merchants completing onboarding and activation on or after 1 July 2026. The platform-fee benefit ends after 90 days or ₹5,00,000 of cumulative eligible transaction value, whichever comes first.

It is for domestic gateway transactions, with exclusions including prepaid cards, corporate credit cards, Amex, Diners and EMI. Existing merchants who transacted before that date are excluded. The terms also allow a ₹199 KYC processing fee plus applicable tax and say statutory levies are not waived.

Other conditions include one redemption per PAN/bank account and fair-use rules: credit-card volume above 90% can trigger withdrawal of the offer. Read the complete conditions and check the credits actually shown in your account. Do not estimate a tax waiver from the 0% headline.

Budget twice: once for the confirmed offer window and once for normal paid operation. A short promotion can reduce launch costs, but it cannot tell you the cost of running the business for a full year.

When does the money reach your bank?

Settlement means Razorpay transfers the available money to your registered bank account. Captured means the payment has moved into the collected stage; it is not merely an attempted or authorised payment.

The official settlement documentation describes domestic standard settlement as T+2 working days, where T is the capture date. The main pricing page, however, refers to “typically T+1 or Instant”. Check your own Dashboard schedule instead of promising one universal timeline.

A working-day cycle is not a simple hour countdown. Bank holidays and the account’s schedule matter. International settlements have their own conditions; a domestic example is not a promise for an overseas payment.

Razorpay’s settlement dashboard guidance covers the breakdown, reports and holds. Use that record when a credit is late or smaller than expected; do not assume the difference is another percentage fee.

Faster settlement can add another cost

Instant settlement is an optional way to move available funds earlier. It is separate from the original payment-processing charge and is subject to account availability and limits. Official Instant Settlements guidance.

The public Instant Settlements page gives a 0.20%–0.30% on-demand range and a 0.15%–0.20% same-day range. Check the amount and applicable tax displayed for your account before confirming; do not automatically add either range to every payment.

For a simple example, assume you choose to settle ₹50,000 early at a quoted 0.25% before GST. The extra fee is ₹125. At 18% GST on that fee, the extra cash cost is ₹147.50. This uses the requested settlement amount as the fee base, not the month’s entire sales.

Paying that amount may be useful when it solves a specific cash shortage. When the normal schedule already works, leave the optional cost out. Do not turn a feature you sometimes use into an unexplained permanent deduction.

To see how Razorpay’s terms sit next to Cashfree, PayU and Easebuzz, compare instant settlement across gateways.

Refunds: returning the sale does not return every fee

Razorpay’s normal-refund documentation says there is no separate processing charge for a normal refund. It also says the original transaction fee and GST charged at capture are not reversed. Those are two different statements.

Return to the ₹10,000 example. After ₹236 in gateway deductions, ₹9,764 remains. If you give the customer a full ₹10,000 normal refund, the ₹236 original deduction is still a cost to your business. The timing of the refund and any balance you need to fund it are separate account questions.

Do not count that ₹236 twice. It was already included in the payment fee. You do not add another ₹236 just because the order is refunded. A report can identify the fee attached to refunded sales, but it must not add that same cost to the total again.

For a ₹4,000 partial refund from the same payment, the simple remaining cash is ₹10,000 − ₹236 − ₹4,000 = ₹5,764, before other adjustments. Do not assume the original fee automatically reduces in proportion to the refund.

An instant refund is a different, paid service. Check its separate fee and whether the refund uses normal or instant speed. The refund FAQ confirms this distinction.

Keep a customer refund separate from a gateway fee refund. One sends back the purchase money; the other would credit a service charge. Enter a fee credit only when it is actually confirmed on your account.

A monthly example with different payment methods

Suppose your business collects ₹2,00,000 in one planning month: ₹1,50,000 at a 2% fee and ₹50,000 at a 3% fee. All amounts are successfully captured, the rates remain unchanged, and GST on fees is 18%. No welcome offer applies in this example.

The effective gateway deduction is 2.655% of the original ₹2,00,000 collected. That is higher than 2.36% because part of the month uses the higher rate.

The ₹10,000 refund reduces cash retained, but it is not another ₹10,000 processing fee. Original fees remain in the ₹5,310 total; there is no extra “retained-fee” line to add.

If you also use the earlier ₹147.50 faster-settlement example, the simplified remaining cash becomes ₹1,84,542.50. This is a planning balance, not a promise about the bank credit for a calendar month. Opening balances, settlement cut-offs, holds and later refunds can move cash between periods.

The workbook calculates by payment group. Small rounding differences can arise when the provider rounds individual transactions. Use actual reports, not rounded planning totals, to close your accounts.

Your website platform may charge separately

A store subscription does not always include every payment cost. Shopify’s third-party transaction-fee guidance says its applicable fee is additional to the processor’s charge. It also says that fee is not returned when an order is refunded.

For illustration, suppose a store platform charges another 2% on the same ₹10,000 fee base. That adds ₹200 before tax on the platform service. It does not replace Razorpay’s processing charge. The platform may bill it separately rather than taking it from the Razorpay settlement.

Our Shopify pricing guide explains the plan side. For hosting, apps, setup and delivery-related budgeting, use the ecommerce website cost guide.

In the calculator, keep separately billed store costs outside the settlement-match sheet. That sheet should explain actual gateway balance movements, not every expense involved in running the shop.

How to check a settlement against your bank account

Start with one settlement or one clearly defined report period. Download the relevant settlement details and match them to the bank credit. Do not compare all orders placed this month with one transfer received today.

Use this control: opening unsettled funds + captured payments + confirmed credits − customer refunds − chargeback debits − fees including tax − closing unsettled funds = expected bank transfers. The opening and closing figures must use the same basis.

If your report’s opening and closing balances already have certain fees removed, do not remove those fees again. The workbook’s Match Settlement sheet requires gross-basis opening and closing funds for its full-period bridge; it is a manual control, not an automatic import of Razorpay’s balance display.

Example: take ₹2,000 of opening unsettled funds, ₹2,00,000 of captured payments, ₹10,000 refunds, ₹5,310 fees including tax, and ₹5,000 still unsettled at the end. With no other adjustments, expected bank transfers are ₹1,81,690. A bank total of ₹1,81,190 leaves a ₹500 shortfall to investigate—not an instruction to invent an expense entry.

Razorpay’s merchant terms provide monthly fee invoices in the Dashboard and require prompt reporting of differences. They state three days for settlement discrepancies and ten days from a fee invoice for an invoice dispute. Check your applicable terms and act promptly. Fee-invoice and reconciliation terms.

Keep the fee invoice, settlement report and customer invoice as different records. Check the business GSTIN and address before the fee invoice is generated. Ask your accountant about tax-credit treatment; the amount withheld from settlement is not automatically the final accounting expense.

Chargebacks and holds are not ordinary fees

A chargeback is a payment dispute raised through the customer’s bank or payment system. It is not the same as a refund you approve. Razorpay’s dispute guidance explains the notification and response process.

A disputed payment amount, an additional service charge and money temporarily held back are three different things. Keep each separately labelled. Request the applicable charges and evidence deadline for your case; do not budget a universal flat charge copied from another merchant.

If a settlement is on hold, read the stated reason and use the official support route. Preserve order details, delivery evidence, refund records and the conversation needed to explain the transaction. Do not mark a held amount as permanently lost just because it has not reached the bank yet.

What users commonly report

These themes summarise public merchant reviews on sites such as Trustpilot, the App Store and Reddit. Complaint-focused sites tend to attract unhappy users, so read them as patterns to plan for rather than a verdict.

• Easy integration: merchants commonly praise how simply Razorpay connects to websites, Shopify stores and apps.
• Wide payment-method choice: UPI, cards, net banking and wallets in one checkout is a frequent positive.
• Smooth routine settlements: established accounts often describe everyday settlements as working well.
• Settlement holds after reviews: the strongest complaint is funds held or accounts restricted after a risk or compliance check, sometimes soon after going live, with vague reasons given.
• Repeated document requests and slow support: merchants report long or repeated verification, template replies and no easy route to a person.
• International payments: some users report difficulty getting international card payments enabled.

Download the Razorpay fee and settlement calculator

Blue cells are for your inputs. Green cells calculate the result. Enter percentages as 2% or 18%, not 2 or 18. Choose whether the rate already includes GST on the One Payment sheet; this avoids adding the same tax twice.

Use the Monthly Plan sheet for pre-tax rates by payment group. A zero amount means that group is deliberately unused; a positive volume needs a valid rate. Optional costs start at an explicit zero assumption. Replace that with a confirmed amount whenever a service applies.

The Refund Check sheet shows the effect on cash, including a negative result when fees remain after a full refund. The Match Settlement sheet compares your expected bank transfers with what you actually received. Neither sheet decides refund rights, tax eligibility, merchant approval or an arrival date.

Save an unchanged master copy. Use a fresh copy for each reporting period and keep the provider’s records alongside it.

Before you start: ask for five clear answers

1. Which rate applies? Confirm each payment method and whether GST is extra.
2. What does the offer cover? Check your eligibility, cap, end date and any onboarding charge.
3. When can you spend the money? Confirm the normal schedule, limits and optional faster-settlement price.
4. What happens after a refund? Separate the purchase amount, original fee and any instant-refund charge.
5. Can you explain the bank credit? Find the settlement breakdown, fee invoice and any adjustments.

Use a permitted test setup to check the checkout and order status before launch. After your first genuine customer payments, compare the payment records with the bank credits and fee invoice. That gives you a small, manageable check before payment volumes grow.

Our recommendation: judge Razorpay by the complete cost and the payment process your business needs. A clear fee schedule, an affordable settlement cycle and records you can match are more useful than choosing from a single headline percentage.