How it works
The usual flow has three steps. Your server creates an order through the Orders API, with the amount in paise; the website or app opens Razorpay Checkout with that order id; after the customer pays, Checkout returns a payment id and a signature, which your server checks with its secret key before marking the order paid. Webhooks such as payment.captured confirm the result even if the customer closes the page.
Beyond the gateway there are Payment Links and Payment Pages (no code needed), Subscriptions, Smart Collect virtual accounts, Route for splitting money between vendors, Instant Settlements, and RazorpayX for business banking and payouts. SDKs cover the web, Android, iOS, Flutter and React Native, and plugins exist for Shopify and WooCommerce. Money normally settles two working days after capture (T+2).
Test mode works as soon as you sign up, with test keys and test cards. Live payments need KYC (PAN, bank account and business details) and a website or app that shows terms, privacy, refund and contact pages, which Razorpay reviews before activating the account.
Razorpay pros and cons
Pros
- One integration covers UPI, cards, netbanking, wallets, EMI and Pay Later
- No setup fee or annual fee on the standard plan
- Clear docs, test mode from day one, and SDKs for most platforms
- Payment links, subscriptions and split payments built in
Cons
- About 2% plus GST on most payments, UPI included, which adds up at volume
- Amex, corporate cards, EMI and international cards cost about 3%
- Live payments wait on KYC and a review of your website
When to use Razorpay
Pick it when
- You sell to customers in India and want UPI and cards in one checkout
- You need subscriptions, payment links or split payouts without another vendor
- A small team wants something quick to integrate and well documented
Skip it when
- Most buyers are abroad and expect PayPal or their own local payment methods
- A small shop only needs a UPI QR code from its bank, which avoids the gateway fee
Razorpay pricing
Per transaction
About 2% plus 18% GST per payment for UPI, domestic cards, netbanking and wallets; about 3% plus GST for Amex, corporate cards, EMI and international cards. No setup or annual fee.
Razorpay pricing page (opens in a new tab)Approximate, checked September 2026.What the other tools cost
Razorpay vs the alternatives
Related terms
More in Payments
Gateways