Razorpay for D2C brands: fees, settlements, subscriptions and what to know

Razorpay is one of the most common payment gateways for Indian stores. Whichever platform you use, the gateway is where your customer's money is collected and where a slice of it is deducted.

What it does for a store

Razorpay lets customers pay by UPI, cards, netbanking and wallets, and offers extras such as payment links, invoices, subscriptions and international payments. Your platform connects to it with keys, and you receive settlements in your bank account.

What it costs

Razorpay's pricing page lists 2% as the standard rate for domestic payments (checked 7 October 2026), plus GST on the fee. It runs promotions from time to time, for example reduced fees for a first period, and larger merchants negotiate custom rates. International card payments are priced separately, at about 3% according to Razorpay's international payments pages. Always read the current terms.

This fee is on top of your platform's own charges. When you compare platforms, add it to every option so that the comparison is fair (cost guide).

Getting started

1. Create an account and complete KYC: business details, PAN, bank account and often GST details and website information.
2. Add your policy pages, because reviewers check them: terms, privacy, refunds and contact details.
3. Wait for activation, which can take days.
4. Connect your store with live keys and place a small test payment.

Settlements and reconciliation

Funds are settled to your bank account on a schedule that depends on your plan and risk profile. Reconcile weekly: match platform orders, Razorpay payments, refunds and settlements. Keep GST invoices for the fees you pay (GST guide).

Useful features for D2C

• UPI intent: opens the customer's UPI app with the amount filled.
• Payment links: collect payment for a COD order that you want to convert to prepaid, or for a WhatsApp sale.
• Subscriptions: recurring billing with mandates (the RBI rules).
• International payments: cards from abroad in many currencies, settled in rupees (guide).

Protect yourself

• Keep API secrets on the server, never in front-end code.
• Verify the signature on every payment callback and webhook before fulfilling an order.
• Watch for chargebacks and respond within the deadline.

Your customers' card and UPI details are entered on Razorpay's hosted checkout, so they never touch your servers. That reduces your compliance work (PCI DSS).

Common mistakes with gateways

• Going live without testing refunds. Place a small real payment and refund it, so you know how it looks to the customer and in your books.
• Ignoring the settlement schedule when planning supplier payments, which causes cash gaps in busy weeks.
• Leaving test keys in production, which means orders look paid but no money moves.
• Not reading the dispute rules. Chargebacks have deadlines, and missing them means losing the money.

What to do next

Check your actual fee on a recent payout statement, calculate what share of revenue it is, and ask Razorpay whether your volume qualifies for a better rate.