Razorpay vs Cashfree for D2C Brands in India: Fees, Security and Refunds Compared (2026)

For a direct-to-consumer (D2C) brand, the payment gateway shapes checkout, cash-on-delivery (COD) returns, cash flow and what a refund or chargeback really costs. This guide compares Razorpay vs Cashfree for D2C one-off purchases, using each provider’s published pricing, offer terms and documentation. Rates checked October 2026. Pricing is kept to a practical summary; a separate article covers fee schedules in depth.

Quick answer: Cashfree has the lower published fee (1.95% against Razorpay’s 2%) and a larger new-merchant offer (Rs 20 lakh of GMV against Rs 5 lakh). Razorpay is the stronger pick for D2C brands that want published refund and dispute rules, COD controls in Magic Checkout, high-value instant settlements and 24×7 support. Decide on order mix, COD share and how much your finance team needs in writing.

How we compared Razorpay vs Cashfree for D2C

We looked at total cost for a realistic payment mix, checkout and COD tools, fraud and dispute handling, settlements, and refund fees. Where a feature was not described on a provider’s public pages, we say it is not publicly documented rather than assuming it does not exist.

Side-by-side comparison table

Razorpay vs Cashfree charges: a practical summary

Razorpay’s pricing page lists a 2% + GST platform fee with zero setup fees and zero annual maintenance charges. UPI and RuPay debit cards carry zero MDR, but the page states that the 2% platform fee still applies for the dashboard, reporting tools and infrastructure. Razorpay’s own pricing explainer lists 3% for EMI, corporate cards, Amex, Diners and international cards, and 18% GST on the platform fee.

Cashfree’s payment gateway charges page shows a 1.95% platform fee across UPI, Visa, Mastercard, RuPay, Maestro, netbanking and wallets, with Amex and Diners listed in the same group. Credit card EMI is 2.2%, HDFC debit card EMI is 1.5%, cardless EMI is +1.90% and Pay Later is 2.20%. International Visa and Mastercard cards are 2.99%, and international Amex is 2.95%. Its FAQ says UPI charges are “as per the applicable law”.

New-merchant offers and their limits

Razorpay’s 90-day offer terms apply to merchants activated on or after 1 July 2026. The waiver covers domestic transactions for 90 days or Rs 5,00,000 of cumulative volume, whichever comes first. Prepaid cards, corporate credit cards, Amex, Diners and all EMI methods are excluded. GST is not waived, a KYC processing fee of Rs 199 plus taxes may apply, and the offer can be withdrawn if credit cards exceed 90% of volume.

Cashfree’s festive offer applies to new merchants who sign up on or after 21 July 2026 at 12:00 PM IST, up to Rs 20,00,000 of GMV, with the campaign running till 31 March 2027. Amex, Diners, corporate credit cards, EMI, prepaid cards, Pay Later, subscriptions and international payments are excluded. GST is still charged at 18%, deducted from settlements and computed on the standard 1.95% rate, even on waived transactions. After the cap, 1.95% plus taxes applies.

Total-cost example (steady state, after both offers end)

Assumptions: monthly GMV of Rs 10 lakh; Rs 6 lakh via UPI, Rs 3 lakh via domestic debit cards, credit cards, netbanking and wallets, and Rs 1 lakh via credit card EMI; no international orders; GST at 18%; no instant settlements; standard published rates, no negotiated pricing.

On these assumptions, Cashfree costs about Rs 1,475 less a month. Settling everything instantly would add about Rs 3,000 plus GST a month on either gateway, since both list 0.30% for instant settlement.

Checkout, payment methods and Shopify or WooCommerce integration

Both gateways accept UPI, cards, netbanking, wallets, EMI and Pay Later; Razorpay also lists Credit Card on UPI. Both offer official Shopify and WooCommerce plugins. Razorpay notes that Magic Checkout works with those plugins, and Cashfree offers Shopify-specific checkout and COD apps.

Razorpay Magic Checkout vs Cashfree One Click Checkout for COD and RTO

For COD-heavy brands, this matters more than a 0.05% fee gap.

Razorpay Magic Checkout documents a 1-click flow, COD block or allow settings, manual COD review, prepaid conversion offers over WhatsApp, delivery status uploads and RTO analytics. Its risk report flags users with signals such as a poorly formed address, few prepaid orders, or a high RTO rate for the user or pincode across many stores.

Cashfree One Click Checkout documents OTP login with address prefill, COD convenience fees, COD restrictions by pincode, product or phone number, and RTO Intelligence that hides COD for high-risk customers. It also documents partial COD, where you collect a flat amount or percentage upfront. If partial COD is central to your RTO plan, Cashfree documents it clearly; partial COD is not described in the Magic Checkout pages we reviewed.

Neither provider publishes checkout pricing on the pages we reviewed, so ask both for a written quote.

Fraud controls: Razorpay risk tools vs Cashfree RiskShield

Razorpay says its fraud detection process flags suspicious charges for review and monitors payment and refund patterns. Chargeback Shield, its machine learning product that takes on liability for fraud chargebacks, covers international payments only and is priced through sales. Self-serve domestic fraud rules are not publicly documented in the Razorpay pages we reviewed.

Cashfree RiskShield documents conditional and velocity rules across more than 30 parameters, including amount, location, payment method, email, phone, IP, UPI VPA and card BIN. Each rule can block or flag transactions. Pricing is not published. A brand that wants its own team to write fraud rules may find RiskShield the better fit. For broader tactics, see our guide to reducing chargeback fraud in ecommerce.

Settlements, instant settlements and reconciliation

Razorpay’s documentation lists T+2 working days as the standard cycle. Instant Settlements run 24×7, from Rs 100 up to Rs 5 crore per settlement, once activated through support, at 0.30% per settlement plus GST (Rs 354 per Rs 1 lakh settled), with the fee shown before you confirm. Dashboard reports link each payment to its settlement ID.

Cashfree also defaults to T+2, and the festive offer gives T+1 by 8:00 PM IST. Instant settlements arrive within 15 minutes, with a Rs 50,000 limit active by default. Its reports show the service charge and GST per transaction, which helps fee reconciliation.

Both sit within RBI’s payment aggregator guidelines, which set merchant settlement timelines.

Do payment gateways keep the fee when you refund?

This is the question finance teams most often get wrong. Razorpay’s refund FAQs state that regular refunds are free, but fees and taxes charged on the captured payment are not reversed. Normal refunds take 5 to 7 business days. Instant Refunds carry a separate fee, and the original platform fee is still not refunded.

Cashfree documents a six-month refund window and says around 90% of refunds are processed instantly. UPI refunds take up to 5 working days and card refunds up to 7. Whether the original platform fee is kept on a refund is not publicly documented in the Cashfree pages we reviewed, so confirm it in your merchant agreement.

RBI’s guidelines require refunds to go to the original payment method unless the customer agrees otherwise. To limit abuse, read our article on refund fraud and policy abuse.

Disputes and chargebacks

Razorpay publishes response windows of T+3 business days for chargebacks, T+2 for pre-arbitration and T+1 for arbitration. The amount is deducted when the dispute opens. Card network fees apply at later stages, for example USD 600 for Visa arbitration and Rs 3,000 for RuPay arbitration, regardless of outcome.

Cashfree documents response windows of 3 days for disputes, retrievals and chargebacks, 1 day for fraud alerts, 2 days for pre-arbitration and 1 day for arbitration. You can accept or contest from the dashboard, and webhooks fire when a dispute is created, updated or closed. New evidence cannot be uploaded at arbitration. If you automate dispute alerts, follow our payment API and webhook security guide.

Support

Razorpay’s pricing page lists 24×7 support. Cashfree’s premium tier, which carries an annual maintenance charge, adds a dedicated account manager and a 30-minute assured response time. GST-registered merchants on its festive offer also get an account manager.

Razorpay vs Cashfree for D2C: which should you choose?

Choose Razorpay if your D2C operation needs:

• Written refund and dispute rules your finance team can model, including the fact that fees are not reversed on refunds.
• COD review, COD intelligence and RTO analytics inside Magic Checkout on Shopify or WooCommerce.
• Large instant settlements, up to Rs 5 crore per settlement, available 24×7.
• 24×7 support without a separate paid tier.

Cashfree may fit better if you are a new merchant expecting more than Rs 5 lakh of early GMV, sell heavily on credit card EMI, want partial COD, or want to write your own fraud rules in RiskShield. On published rates, Cashfree is cheaper, so a price-led brand with low COD share has a sound case for it.

FAQs

1. Is GST charged during the 0% offers?

Yes. Razorpay’s offer terms say GST and statutory levies on platform fees are not waived. Cashfree’s terms go further: GST at 18% is deducted from settlements even on waived transactions and is computed on the standard 1.95% rate. Budget for this when you calculate your first months of costs on either gateway.

2. Does Razorpay refund the gateway fee when I refund a customer?

No. Razorpay’s refund FAQs state that regular refunds are free, but fees and taxes charged on the captured payment are not reversed. Instant Refunds carry an extra fee, and the original platform fee is still kept. Cashfree’s treatment is not publicly documented in the pages we reviewed, so check your agreement.

3. Which gateway is better for COD-heavy stores?

Both have documented COD tools. Razorpay Magic Checkout offers COD blocking, manual review, COD intelligence and RTO analytics. Cashfree One Click Checkout offers RTO Intelligence, COD fees, restrictions by pincode or product, and partial COD. Test both on your own order data, since RTO patterns differ by category and region.

4. How fast do Razorpay and Cashfree settle funds?

Both default to T+2 working days. Cashfree’s festive offer gives T+1 settlement by 8:00 PM IST during the campaign. Both offer instant settlements at a listed 0.30% plus GST. Razorpay allows up to Rs 5 crore per settlement, and Cashfree credits funds within 15 minutes.