Razorpay vs Cashfree vs Easebuzz for B2B Payments: Invoice Collections, Reconciliation and Vendor Payouts

Finance teams describe this as one problem: get paid on time, pay vendors on time. At all three providers here, collection and payout are separate products with separate eligibility, banking and fees.

This guide compares Razorpay Smart Collect (both documented versions), Cashfree Auto Collect and Easebuzz InstaCollect on collections, and RazorpayX Vendor Payments, Cashfree Payouts and Easebuzz Wire on payouts, using only what each documents publicly, from virtual account mechanics to approvals, limits, credit timing and accounting exports. Figures checked October 2026. Where a provider publishes nothing, this guide says so rather than filling the gap, and B2B pricing is where that happens most.

Quick answer: All three issue virtual accounts that accept NEFT, RTGS and IMPS, and all three add virtual UPI IDs. Razorpay Smart Collect 2.0 and Easebuzz InstaCollect tie collections to a current account with a partner bank, while Cashfree Auto Collect settles to the bank account you already have on an agreed cycle. Vendor payouts are a separate product at each provider, with their own onboarding and approvals. Collection and payout charges are almost entirely unpublished, so treat every rate as quote-based and confirmed in writing at onboarding, not as a list price you can compare.

Why invoice collection and vendor payout are four separate jobs

Buying one of these does not get you the others.

1. Invoice collection: giving a customer an account number or UPI ID to pay a specific invoice by NEFT, RTGS, IMPS or UPI.
2. Payer identification: knowing who paid, from which account, with which UTR, without chasing a remittance advice.
3. Reconciliation: matching receipts to open invoices, handling partial payments, overpayments, unidentified receipts and credit notes, then posting to the ledger.
4. Vendor payout: paying supplier invoices after approval, with TDS deducted, from a funded account.

Collection support never implies payout access. Smart Collect 2.0 and RazorpayX Payouts both need a current or escrow account with a partner bank, and Razorpay states that RazorpayX is not a bank and holds no banking licence. Cashfree’s Auto Collect page says the product does not handle outward payments and points to Cashfree Payouts. Easebuzz Wire is for registered businesses with a current account, and does not support NRE or NRO accounts. These account structures are regulated: see our RBI payment aggregator guidelines checklist.

How do Razorpay, Cashfree and Easebuzz collect invoice payments?

Virtual accounts and collection references

All three use the same mechanism: a pass-through virtual account, linked to a real bank account, unique to a customer or an invoice. Cashfree and Easebuzz both define it that way, and Cashfree adds that money cannot be held in it.

The sharpest distinction sits inside Razorpay, where the Smart Collect product page documents two versions that are not interchangeable. The original payment-gateway variant issues numeric customer identifiers for NEFT, RTGS and IMPS, does not support UPI, and settles on a T+2 working-day basis; Razorpay’s own page calls it “limited features” for “unique use cases”. Smart Collect 2.0 requires a current or escrow account (the docs list Yes Bank, Axis Bank and RBL Bank), issues alphanumeric identifiers and virtual UPI IDs, and settles in real time with a transaction-level breakup in the account. Migration is optional, and the only required API change is handling alphanumeric identifiers. Establish which version your account is on before anyone writes code, because UPI support and settlement speed both depend on it.

Cashfree Auto Collect creates a virtual bank account for IMPS, NEFT and RTGS, or a virtual UPI ID, per customer or invoice, from the dashboard or API, with no stated cap and no KYC per account. The dashboard lets you select several partner banks as a backup if one bank’s server is down, and its account numbers are fully numeric.

Easebuzz InstaCollect creates virtual accounts, custom UPI IDs and static or dynamic QR codes from a dashboard linked to a master admin account. Its Smart Order add-on wraps a dynamic QR and virtual account around one order: once paid, the order is completed and the QR deactivated, while recurring orders accept several payments against one order.

Notifications and matching controls

Razorpay’s virtual_account.credited webhook carries the payment ID, mode, bank_reference (the UTR), the payer’s account number, IFSC and name, plus the running amount_paid and any amount_expected; UPI payments carry an RRN. Cashfree sends AMOUNT_COLLECTED, TRANSFER_REJECTED and AMOUNT_SETTLED webhooks with utr, remitterAccount, remitterIfsc and remitterName. Easebuzz documents webhooks for real-time status, and transactions can be accepted or rejected automatically or from the dashboard. Since these payloads drive ledger postings, the receiving endpoint is a finance control: see our guide to payment API and webhook security.

Matching controls differ more. Razorpay lets you set an expected amount, a close_by time and, with third-party validation (TPV), up to 10 allowed payer accounts; payments from any other account are refunded by the same mode and tagged “Bank Account Validation Failed”. Identifiers unused for 90 days close automatically, and payments to a closed identifier are refunded to source, usually within one business day. Cashfree offers a Remitter Account Lock of up to 10 payer accounts and an Amount Lock with a minimum and a maximum; payments to an inactive account are rejected and listed under Rejected Payments. Easebuzz documents refunds by transaction ID, and refunds payments made to a closed virtual account within one business day.

Set these locks deliberately: they also reject legitimate instalments and payments from a customer’s second account. Neither Cashfree lock applies to UPI IDs, and all three issue them, so our guide to UPI fraud prevention for merchants applies here too.

How does invoice-to-bank reconciliation actually work?

This is an illustrative scenario, not a tested result. A Pune supplier issues three October invoices, each on its own virtual account, plus a credit note; GST is 18%. INV-101 to Alpha Engg is Rs 1,18,000 including Rs 18,000 GST, on VA-ALPHA-101. INV-102 to Beta Tools is Rs 59,000 including Rs 9,000 GST, on VA-BETA-102. INV-103 to Gamma Metals is Rs 2,36,000 including Rs 36,000 GST, on VA-GAMMA-103. Credit note CN-07 takes Rs 11,800 off INV-103. Four receipts arrive, none clean.

The partial payment

An NEFT receipt of Rs 59,000 lands on VA-ALPHA-101 against an invoice of Rs 1,18,000. On Razorpay, amount_paid shows Rs 59,000 against an amount_expected of Rs 1,18,000, so the gap is visible. On Cashfree, an Amount Lock set to the exact invoice total would have rejected it, so teams that accept instalments should set the minimum lower. Finance posts a part-receipt.

The overpayment

An IMPS receipt of Rs 60,000 lands on VA-BETA-102 against an invoice of Rs 59,000. None of the three documents automatic refund of an excess, so it is a finance decision: record the Rs 1,000 as an advance on Beta’s ledger, or refund it. Razorpay and Easebuzz document refund initiation from the dashboard or API; on Cashfree the excess sits in the settled balance.

The credit note deduction

An RTGS receipt of Rs 2,24,200 lands on VA-GAMMA-103, which is INV-103 less CN-07, an exact match. Because the receipt landed on an invoice-specific account the match is unambiguous: apply the credit note, then clear the net Rs 2,24,200.

The unidentified receipt

An NEFT receipt of Rs 25,000 lands in the main current account with the narration “payment”. This is what the virtual account model exists to prevent: no webhook fires and no payer data is attached, so finance works from the bank statement, calls the customer, or parks it in suspense. The fix is not a product setting: print the virtual account on the invoice and the purchase order, not only in an email.

Exports and ERP connections

Razorpay documents RazorpayX accounting integrations with Zoho Books and Tally for account statements, vendor payments and payouts, while Smart Collect itself offers webhooks and reports with payer bank details. Razorpay does not publicly document a direct Smart Collect to Tally or Zoho Books receipt sync, so if collection receipts must reach the ledger automatically, get the mechanism in writing at onboarding.

Cashfree documents Auto Collect payment reports filterable by date, virtual account ID, virtual UPI and UTR, plus rejected payment reports and month-wise settlement invoices. Its Zoho plugin covers Zoho Books, Invoice, Checkout, Billing and Inventory, but is a payment gateway integration, not an Auto Collect one. Its payouts page says payout data syncs directly with Tally.

Easebuzz documents Tally on the payout side: invoices import and paid status syncs back, free of charge. For InstaCollect it does not publicly document any accounting or ERP export, and its pages mention dashboard tracking and webhooks only. That is not the same as the capability being absent, so ask and get it in writing. None of the three names SAP, and every documented Tally or Zoho Books sync sits on the payout side, not collections.

How do vendor payouts work?

Product, onboarding and funding

RazorpayX Vendor Payments is the only one of the three documenting OCR capture, email-forwarded invoices and a vendor portal as intake routes: a PDF read by OCR, manual entry, a dedicated forwarding address where invoices land in draft state, or vendor upload. Payouts debit the RazorpayX balance, including fees and tax, and signup, activation and KYC come first.

Cashfree Payouts funds transfers from a Payout Recharge Account with its own account number and IFSC. Invoices are added singly or in bulk, with a GST category of IGST or CGST and optional GST and TDS amount fields. Cashfree publishes no standard rate card for Payouts.

Easebuzz Vendor Payments and Wire both require a registered business with a current account. Easebuzz can open a digital current account with a partner bank or connect an existing one, and gateway settlements and Wire payouts can share it.

Approvals, limits and credit timing

RazorpayX approval workflows are amount-banded: the template example needs no approval up to Rs 1,000, one step up to Rs 5,000 and two steps above, with AND or OR logic across roles, approved from the dashboard, mobile app or Slack. Payouts pending over three months are auto-cancelled, and the workflow is unavailable in test mode. Published mode limits and credit windows, in RazorpayX payout documentation, are summarised below; UPI payouts are restricted to RBL and Yes Bank current accounts.

Cashfree invoice approval uses alias roles for viewing, initiating and approving, while bulk transfer approval and the maker-checker on bulk bank verification (up to three approvers, 1,000 entries per file) are enabled through your account manager.

Easebuzz Wire sets maker-checker rules by amount and says transfers above Rs 2 lakh may take longer, because banks may restrict them. In Vendor Payments the maker creates the invoice and an admin checks bank and invoice details before approving; bulk files proceed for valid rows even when some fail.

What do collections and payouts cost?

Collections and payouts are priced separately, and most of it is not on a public page. Razorpay’s pricing page lists no Smart Collect, NEFT, RTGS or payout fee; the Smart Collect FAQ says only that 2.0 fees draw from Fee Credits first, then from settlement. Both versions need a quote.

Cashfree publishes the only number here, and it needs care. Its general help pricing page lists a flat fee starting at Rs 20 per transaction for virtual bank accounts collecting by IMPS, NEFT or RTGS through the gateway, plus 18% GST, while the Auto Collect docs refer only to “agreed service charges” deducted at settlement. The two pages disagree on whether that fee governs Auto Collect; ask Cashfree which applies to your account and get it in writing at onboarding.

Easebuzz publishes no InstaCollect or Wire rates: they are emailed after an agreement, and settlements are T+1 working day. Since none of the three publishes complete B2B rates, your contract is the only record of what was agreed.

Which should you choose?

Razorpay suits a business that wants collections and payables on one balance: Smart Collect 2.0 credits the current account in real time, Vendor Payments captures invoices by OCR or email, TDS is categorised and paid monthly with challans, and Tally or Zoho Books receives the entries. The trade-off is dependence on a current or escrow account with a partner bank, and BFSI merchants in broking or mutual funds must enable TPV.

Cashfree suits a team that wants to keep the bank account it already has and layer identification on top: no KYC per virtual account, remitter and amount locks, and a settlement cycle you choose. Its payout side documents strong verification but lighter invoice capture.

Easebuzz suits businesses already on Tally that want invoices imported and paid status written back, and smaller merchants wanting QR and WhatsApp-driven collection through Smart Order. Its documentation is thinner on matching controls and limits, so confirm those in writing.

Whichever you pick, the exposure sits on the edges: unidentified receipts, and loose payout approvals, which is why Cashfree and Easebuzz both document pre-payout bank verification.

What to confirm before you sign

1. Which bank account collections settle to, and whether a new current account is mandatory.
2. For Razorpay, which Smart Collect version your account is on, since UPI and settlement speed depend on it.
3. Fee schedules separately for collections (by mode) and payouts (by mode and amount band), with GST stated.
4. Whether the Cashfree Rs 20 flat fee applies to Auto Collect or only to gateway virtual bank accounts.
5. A sandbox test of a partial payment and an overpayment, with the webhook payload read end to end.
6. The refund path for payments to closed or non-whitelisted accounts.
7. The accounting integration on your ERP version, and whether collection receipts sync or only payouts.
8. Approval roles and limits, before the first vendor file goes up.

FAQs

1. Does Razorpay Smart Collect support UPI?

Only the 2.0 version. Payment-gateway Smart Collect accepts NEFT, RTGS and IMPS but not UPI, while 2.0 adds virtual UPI IDs to the customer identifier. Because 2.0 requires a current or escrow account with Yes Bank, Axis Bank or RBL Bank, UPI collection is tied to that banking relationship.

2. Do I need a RazorpayX current account for Vendor Payments?

Not in those words, but the docs say payouts debit your RazorpayX balance and that signup, activation and KYC come first. The payout table separates RazorpayX Lite from a current account, with UPI payouts limited to RBL and Yes Bank. Ask Razorpay which account type your use case needs.

3. How is TDS handled at each provider?

RazorpayX lets you pick a TDS category per invoice, edit it for the 20% no-PAN case, lower-rate certificates or cumulative thresholds, and pays aggregated TDS monthly with challans. Easebuzz calculates TDS on the gross amount using GST and TDS categories, and Cashfree has an optional TDS amount field but documents no calculation or remittance.

4. Are collection fees published anywhere?

Largely no. Razorpay publishes no Smart Collect rate for either version, Cashfree lists a flat fee from Rs 20 per transaction for gateway virtual bank account collections plus 18% GST while its Auto Collect docs say only agreed service charges, and Easebuzz emails rates after an agreement.