How to accept online payments in India: UPI, cards and gateway fees

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To accept online payments in India, you need UPI above all, plus cards, netbanking and wallets, through a payment gateway that is authorised by the RBI and settles in rupees to your Indian bank account. Fees vary by method, GST is added to gateway fees, and rules on card storage and recurring payments are stricter than in many countries. This guide explains the payment methods, current fees from gateways' own pages, onboarding, settlement, recurring payments and international payments.

How Indians pay online

UPI (Unified Payments Interface) is the most popular digital payment method in India. Customers pay from apps such as Google Pay, PhonePe and Paytm or their bank's app by scanning a QR code, approving a collect request or entering a UPI ID. Debit and credit cards, including RuPay, Visa and Mastercard, remain important for larger and international transactions. Netbanking, wallets, EMI options and pay-later services are also used.

A checkout that offers UPI, cards and netbanking covers the vast majority of customers.

Razorpay and Stripe fees

Razorpay's pricing page lists a standard rate of 2% per transaction for most domestic methods, plus GST on the fee, with no setup or annual fees, and an offer of 0% fees for the first 90 days on terms set by Razorpay. Stripe's India pricing lists 2% for domestic cards, 0.4% capped at ₹200 for domestic debit cards, 3% for international cards, and an extra 2% where currency conversion is needed.

Fees for specific methods, such as American Express, international cards, EMI and corporate cards, can be higher. Compare gateways in our best payment gateways in India ranking and calculate costs with the India payment fee calculator.

UPI and the merchant discount rate

Under government policy, UPI payments and RuPay debit card payments carry a zero merchant discount rate, meaning banks do not charge merchants the usual fee for these transactions. Payment gateways may still charge platform or convenience fees for processing them, depending on their pricing and your plan. Check each gateway's pricing for UPI specifically, since it is likely to be your highest-volume method.

For very small businesses, accepting UPI directly with a merchant QR code from a bank or payment app can be the cheapest option, though it lacks the automatic order matching of a gateway.

Payment aggregators and RBI rules

Online payment gateways in India operate as payment aggregators authorised by the Reserve Bank of India. RBI rules require aggregators to verify merchants (KYC), settle funds within set timelines, and protect customer data. Merchants and aggregators may not store full card numbers; instead, cards are saved as tokens, which is why saved-card experiences rely on tokenisation. When choosing a gateway, confirm it is authorised and check its compliance with current RBI guidelines.

What you need to sign up

• PAN of the business or proprietor.
• Business registration proof, such as a certificate of incorporation, partnership deed, or GST registration for proprietors.
• GSTIN if registered.
• Bank account in the business's name for settlement, with a cancelled cheque or statement.
• Identity and address proof of directors or owners.
• A website or app with product details, pricing, contact information, refund, cancellation, privacy and terms pages.

Gateways review your website for the required policy pages, so have them ready before applying. Some offer quick onboarding for small merchants with limits.

Integrating with your website or app

Gateways offer hosted checkout pages, embedded checkout and APIs, plus plugins for WooCommerce, Shopify and other platforms. Payment links and QR codes work without a website, useful for social selling and invoices. For apps, use the gateway's mobile SDKs for UPI intent flows, which open the customer's UPI app directly. Test on popular UPI apps and low-end phones, since that is where most customers are.

See the e-commerce ranking for store platforms and the cost to start an online store.

Settlement

Gateways settle funds to your bank account on a schedule, commonly a couple of business days after the transaction, with options for faster or instant settlement at an extra fee. RBI rules govern how long aggregators can hold funds. New merchants may have reserves or holds. Check settlement timing in the terms and plan cash flow accordingly.

Recurring payments and subscriptions

Recurring card payments in India require an e-mandate registered with additional factor authentication, under RBI rules. Customers approve the mandate once, and subsequent charges up to a set limit can be processed with a pre-debit notification; charges above the limit need fresh authentication. UPI AutoPay offers similar mandates through UPI. These rules reduce fraud but make recurring billing more complex than in some countries, so choose a gateway with strong support for e-mandates and UPI AutoPay if you run subscriptions.

GST on fees and on sales

Gateway fees attract GST at 18%, which registered businesses can usually claim as input tax credit. Your own sales are subject to GST at the applicable rate, and if your turnover requires e-invoicing, B2B invoices must be registered on the IRP; see GST e-invoicing in India. Use the GST calculator for quick sums, and reconcile gateway settlement reports with sales and GST returns monthly.

Accepting international payments

To accept international cards, you usually need to enable international payments with your gateway, which involves additional checks. Export of services proceeds must be realised in line with foreign exchange rules, and gateways provide documentation such as foreign inward remittance certificates. Freelancers and agencies serving clients abroad often use invoicing with international payment accounts instead. See how to get paid by international clients and how to cut international payment fees.

Refunds, disputes and fraud

Customers can raise disputes and chargebacks on card payments, and UPI disputes go through the banks' complaint systems. Clear refund policies, accurate product descriptions, order confirmations and delivery tracking reduce disputes. Process refunds quickly through the gateway so they reach the customer's original payment method. Use the gateway's fraud tools and watch for unusual patterns, such as many small payments from new accounts.

Example: a D2C brand

A direct-to-consumer snack brand in Bengaluru sells through its own Shopify store. It uses a gateway with UPI intent, cards and netbanking. Most customers pay by UPI, so the brand put UPI first at checkout, which improved completion rates on mobile. Cash on delivery, still popular in India, is offered only on orders above a minimum value to reduce returns. The brand reconciles gateway settlements with orders weekly and files GST returns monthly.

Example: a SaaS startup with Indian and global customers

A SaaS startup in Pune sells to Indian SMEs and to customers abroad. For Indian customers, it uses a gateway with e-mandates and UPI AutoPay for monthly subscriptions, and offers annual plans by bank transfer at a discount. For international customers, it uses a gateway account enabled for international cards, invoicing in dollars. It tracks failed renewals closely, because e-mandate limits and expired cards cause most failures, and sends reminders before each charge.

Choosing a gateway: checklist

1. RBI authorisation and compliance.
2. UPI, cards, netbanking and wallets, with good UPI success rates.
3. Fees by method, including UPI, plus GST.
4. Integration with your store or app.
5. Settlement times and options.
6. Subscription support: e-mandates and UPI AutoPay.
7. International payments if needed.
8. Dashboard, reporting and support quality.

Security

Never store card numbers; use the gateway's tokenisation. Protect dashboards with two-factor authentication, restrict staff access, and keep API keys on your server. Comply with the Digital Personal Data Protection Act for customer data collected at checkout. See how to protect a small business website and two-factor authentication.

Common mistakes

• Applying without refund, privacy and terms pages on your website.
• Not prioritising UPI at checkout.
• Assuming UPI is always free through a gateway.
• Ignoring e-mandate rules for subscriptions.
• Forgetting GST on gateway fees in cost comparisons.
• Not reconciling settlements with GST returns.

Cash on delivery and how to reduce it

Cash on delivery remains common in Indian e-commerce, especially outside large cities and for first-time buyers. It increases trust but brings higher return rates, cash handling and delayed payment. Many businesses reduce it by offering small discounts or free shipping for prepaid orders, limiting COD to orders above or below certain values, confirming COD orders by call or message before dispatch, and offering pay-on-delivery by UPI so the courier collects digitally. Track return-to-origin rates for COD and prepaid orders separately to see the real cost.

QR codes and payment links

UPI QR codes are everywhere in India, and they work for online businesses too: on invoices, in WhatsApp chats and on social media. Dynamic QR codes generated by your gateway for each order include the amount and reference, so payments are matched automatically. Payment links let customers choose UPI, card or netbanking. For businesses issuing invoices above certain turnover thresholds, a dynamic QR code on B2C invoices is required; see GST e-invoicing in India.

Payouts and marketplace payments

Gateways also offer payout products for sending money to vendors, customers, delivery partners or employees by bank transfer or UPI. Marketplaces may need split payments, where one customer payment is divided between sellers and the platform, which requires specific gateway products and compliance. For salaries, use payroll software that handles TDS and provident fund; see payroll in India.

Reconciliation

Settlements arrive as batches minus fees, GST on fees and refunds. Download settlement reports regularly and match them with orders and bank credits. Record fees and the GST on them separately to claim input tax credit. Accounting software that imports gateway reports reduces manual work; see India accounting software.

Measuring payment success

UPI and card success rates vary by bank, app and time of day. Track success rates by payment method and bank in your gateway dashboard, and the share of customers who abandon at payment. If success rates drop for a particular method, contact your gateway; some route transactions through multiple banks to improve success. Small improvements in success rate can add meaningful revenue at volume.

Choosing between direct UPI and a gateway

A shop selling locally with few online orders can start with a merchant UPI QR code and manual matching. Once orders grow, or you need cards, netbanking, subscriptions, refunds through one dashboard, or integration with a store, a gateway becomes worth its fees. Many businesses use both: a gateway for online orders and a merchant QR for in-person sales.

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