Razorpay vs Cashfree Pricing in India (2026): Transaction Fees, GST and Total Cost Compared
This guide compares Razorpay vs Cashfree pricing using each provider’s published fee schedule and current new-merchant offer, separates standard rates from promotions, and works through monthly costs at three volumes. Rates checked October 2026. Both providers change pricing often, so treat every figure as a starting point for your own quote.
Quick answer: On published standard rates, Cashfree charges 1.95% + GST on most domestic methods and Razorpay charges 2% + GST, so Cashfree is about Rs 59 cheaper per Rs 1 lakh. Cashfree’s new-merchant offer covers Rs 20 lakh but still deducts GST on a notional 1.95% fee; Razorpay’s covers Rs 5 lakh or 90 days. Your method mix and negotiated rates decide the final cost.
Razorpay vs Cashfree pricing: standard rates by payment method
List prices before GST. Razorpay’s method-wise figures come from Razorpay’s pricing explainer, as Razorpay’s pricing page shows a single headline rate. Cashfree’s figures come from the Cashfree payment gateway charges page.
| Payment method | Razorpay standard platform fee | Cashfree standard platform fee |
|---|---|---|
| UPI | 2% | 1.95% |
| Domestic debit and credit cards (Visa, Mastercard, Maestro) | 2% | 1.95% |
| RuPay debit cards | 2% | 1.95% (RuPay listed with other cards) |
| RuPay credit card on UPI | 2.15% | Not published; Cashfree asks merchants to raise a support ticket |
| Netbanking | 2% | 1.95% (listed as bank transfer) |
| Wallets | 2% | 1.95% (PhonePe, Airtel Payments, JioMoney, Amazon Pay listed) |
| Amex and Diners Club (domestic) | 3% | 1.95% (listed with other payment modes) |
| Corporate or business cards | 3% | Not publicly listed |
| Credit card EMI | 3% (EMI line in Razorpay’s fee summary) | 2.2% |
| Debit card EMI | 1% | 1.5% (HDFC Bank) |
| Cardless EMI | 3% | Listed as “+1.90%” (base not stated) |
| Pay Later | 3% | 2.20% |
| International cards | 3% (optional chargeback protection adds 1%) | 2.99% (Visa, Mastercard); 2.95% (Amex) |
| International bank transfers | 1% | Global collections priced on request |
Razorpay’s explainer also has a summary table showing Pay Later at 2%, so confirm EMI and Pay Later rates in writing. Both providers offer custom pricing: Razorpay invites businesses accepting over Rs 5 lakh a month to contact its team, and Cashfree quotes custom rates for enterprises and for very high or very low order values. Cashfree’s offer does not apply to accounts using custom pricing on any method.
Is UPI free? UPI MDR versus gateway platform fees
Since January 2020, the merchant discount rate (MDR) on RuPay debit cards and BHIM-UPI has been zero, through amendments to section 10A of the Payment and Settlement Systems Act, 2007 and section 269SU of the Income-tax Act, 1961, as the Cabinet decision on UPI incentives published by the Prime Minister’s Office records.
A gateway platform fee is a separate charge for the gateway’s own services. Razorpay’s explainer states that its 2% on UPI is a platform fee, not MDR. Cashfree lists UPI at 1.95% and defines its platform fee as covering hosted checkout, plugins, SDKs, dashboard and reports. Razorpay’s pricing page FAQ describes standard UPI and RuPay debit payments as zero MDR, so confirm in writing whether your plan charges a platform fee on UPI.
How do the Razorpay and Cashfree 0% offers compare?
Both offers are for new merchants. Older articles still quote a Cashfree 1.6% promotion, which is not the current offer.
| Term | Razorpay | Cashfree |
|---|---|---|
| Who qualifies | Merchants who complete KYC and are activated on or after 1 July 2026 | New merchants who sign up on or after 21 July 2026, 12:00 PM IST |
| GMV cap | Rs 5,00,000 cumulative | Rs 20,00,000 cumulative |
| Duration | 90 days from activation or until the cap is used, whichever is earlier | Until the cap is used or the campaign ends (31 March 2027), whichever is earlier |
| Excluded methods | Prepaid cards, corporate credit cards, Amex, Diners Club, all EMI-based methods; domestic transactions only | Amex, Diners Club, corporate credit cards, all EMI-based methods, prepaid cards, Pay Later, e-mandate subscriptions, international transactions, any method with standard MDR of 3% or more |
| GST | GST on platform fees not waived | GST at 18% deducted from settlements, calculated on the standard 1.95% even when the fee is waived |
| Onboarding charge | KYC processing fee of Rs 199 plus taxes may be charged | Zero setup fees |
| Fair-usage limit | Offer can be withdrawn if credit cards are more than 90% of volume | Offer can be withdrawn if credit cards are 60% or more of GMV |
| After expiry | Standard Razorpay platform fees apply automatically | Standard 1.95% + applicable taxes apply automatically |
Both allow one redemption per PAN or bank account and let unused amounts lapse. Cashfree also excludes merchants referred by partners or resellers and some merchant categories, including schools. At Razorpay, if a single payment exceeds the remaining credit, fees apply to the whole payment. See the Razorpay 90-day offer terms and Cashfree’s pricing page.
How does GST apply to payment gateway charges?
GST at 18% applies to the gateway’s fee, not to the payment amount. A 2% fee becomes 2.36% of the payment, and 1.95% becomes 2.301%. Both are deducted before settlement. GST-registered businesses can usually claim input tax credit on it; check with your accountant.
Cashfree states that during its offer, GST is still deducted on a notional 1.95% fee, or 0.351% of covered volume. Razorpay’s terms say GST on platform fees is not waived but do not state a notional base, so ask Razorpay whether any GST is deducted while the fee is zero.
Setup fees, AMC, instant settlement and refund charges
- Setup and annual maintenance: Razorpay states zero setup fees and zero annual maintenance charges. Cashfree states zero setup fees and offers premium services (dedicated account manager, priority support) for an annual maintenance charge whose amount is not published.
- Instant settlement: Razorpay’s on-demand settlement costs 0.30% per settlement plus GST, or Rs 354 per Rs 1 lakh settled. Cashfree lists 0.30% before GST, varying by settlement type and risk assessment.
- Refunds: Razorpay’s refund documentation says normal refunds carry no processing fee, but the transaction fee and GST on the original payment are not reversed. Instant refunds carry a separate fee. Cashfree’s documentation shows refund charges inside the dashboard; its rule on reversing the original fee is not publicly documented, so ask. High-return merchants should also read our guide to refund fraud and policy abuse.
What is included and what costs extra?
Razorpay says its standard fee covers routing, retries, reporting, reconciliation and settlement management. Cashfree includes Payment Links, Payment Forms and softPOS at no added cost.
Razorpay add-ons include Subscriptions (0.5% per subscription payment on top of the method fee, a limited-time rate down from 0.9%), instant settlement, instant refunds and chargeback protection on international cards. Cashfree’s priced add-ons include subscriptions (Rs 7.5 + Rs 7.5 for most mandate types), Easy Split (0.20%), instant settlement (0.30%) and virtual account payments (Rs 20). If you plan to run both gateways, see our article on multi-gateway trade-offs, which covers the operational side.
Monthly cost examples at Rs 1 lakh, Rs 5 lakh and Rs 20 lakh
Assumptions used for every scenario:
- Payment mix: 60% UPI, 25% domestic consumer cards (Visa, Mastercard, RuPay; no Amex, corporate, prepaid or EMI), 10% netbanking, 5% wallets.
- Standard rates: Razorpay 2% and Cashfree 1.95% on all four methods, including UPI (the conservative reading of both schedules), plus 18% GST.
- No refunds, chargebacks, instant settlements, add-ons or custom pricing.
- Activation on 1 October 2026, constant monthly volume, with Razorpay’s 90 days treated as three calendar months.
- Razorpay: no GST on waived fees (unconfirmed) and the Rs 199 KYC fee (Rs 234.82 with GST) left out.
Steady-state monthly cost, itemised by method (Rs):
| Line item | Rs 1 lakh: Razorpay | Rs 1 lakh: Cashfree | Rs 5 lakh: Razorpay | Rs 5 lakh: Cashfree | Rs 20 lakh: Razorpay | Rs 20 lakh: Cashfree |
|---|---|---|---|---|---|---|
| UPI (60%) | 1,200 | 1,170 | 6,000 | 5,850 | 24,000 | 23,400 |
| Cards (25%) | 500 | 487.50 | 2,500 | 2,437.50 | 10,000 | 9,750 |
| Netbanking (10%) | 200 | 195 | 1,000 | 975 | 4,000 | 3,900 |
| Wallets (5%) | 100 | 97.50 | 500 | 487.50 | 2,000 | 1,950 |
| Platform fee | 2,000 | 1,950 | 10,000 | 9,750 | 40,000 | 39,000 |
| GST at 18% | 360 | 351 | 1,800 | 1,755 | 7,200 | 7,020 |
| Total per month | 2,360 | 2,301 | 11,800 | 11,505 | 47,200 | 46,020 |
Promotional period, October 2026 to March 2027 (Rs):
| Monthly volume | Razorpay month 1 | Cashfree month 1 | Razorpay six-month total | Cashfree six-month total |
|---|---|---|---|---|
| Rs 1 lakh | 0 | 351 | 7,080 | 2,106 |
| Rs 5 lakh | 0 | 1,755 | 59,000 | 30,030 |
| Rs 20 lakh | 35,400 | 7,020 | 2,71,400 | 2,37,120 |
At Rs 5 lakh, Razorpay’s cap is used in month one while Cashfree’s lasts four months. At Rs 20 lakh, Razorpay waives only the first Rs 5 lakh. After the offers, the gap is Rs 59 per Rs 1 lakh in Cashfree’s favour.
Razorpay vs Cashfree pricing: which should you choose?
For a UPI-led domestic mix, Cashfree costs less at list price, during and after the offer. It is also cheaper on published rates for domestic Amex, Diners Club, credit card EMI and Pay Later, so price-led businesses with that mix should shortlist Cashfree.
We recommend Razorpay when these criteria outweigh a 0.05 percentage point gap:
- Credit-card-heavy sales: Razorpay’s fair-usage limit is more than 90% credit cards, against 60% or more at Cashfree.
- Debit card EMI: 1% at Razorpay against 1.5% at Cashfree.
- Export receipts: Razorpay publishes a 1% rate for international bank transfers, while Cashfree prices global collections on request.
- Documented charges: Razorpay publishes its refund-fee rule and a method-wise schedule, which helps finance teams forecast.
- Volumes above Rs 5 lakh a month: Razorpay offers custom pricing here, so the list gap may disappear.
For international sales, chargebacks also affect cost, as our guide to chargeback fraud explains.
What to confirm in your merchant agreement
Ask either provider to state in writing: the platform fee on UPI and RuPay debit cards, EMI, Pay Later and corporate card rates, GST on waived offer fees, refund and chargeback fees, instant settlement rates for your risk tier, any annual maintenance charge, and whether your category qualifies for the offer. Unpublished charges belong in the merchant agreement, not a sales email.
FAQs
1. Do Razorpay and Cashfree charge for UPI payments?
MDR on UPI and RuPay debit cards has been zero by law since January 2020. Gateways can still charge a platform fee for their services. Razorpay’s explainer lists 2% on UPI as a platform fee, and Cashfree lists UPI at 1.95%. Razorpay’s pricing page FAQ describes standard UPI as zero MDR, so confirm the UPI line in your agreement.
2. Is GST charged during the 0% offers?
Cashfree’s terms say GST at 18% is deducted from settlements during its offer, calculated on the standard 1.95% fee, which equals 0.351% of covered volume. Razorpay’s terms say GST on platform fees is not waived but do not mention a notional fee base. Ask Razorpay to confirm whether any GST is deducted while your fee is zero.
3. What happens when the offer ends?
Both switch automatically to standard pricing. Razorpay’s offer ends after 90 days from activation or Rs 5 lakh of volume, whichever comes first. Cashfree’s ends when Rs 20 lakh is used or the campaign closes on 31 March 2027. Unused amounts lapse with both providers and cannot be carried forward or exchanged for cash.
4. Are transaction fees returned when I refund a customer?
At Razorpay, normal refunds carry no processing fee, but the fee and GST charged on the original payment are not reversed. Instant refunds have a separate fee. Cashfree shows refund charges in its dashboard when you start a refund, but its rule on the original fee is not publicly documented, so ask before you sign.
5. Do Razorpay or Cashfree charge setup or annual fees?
Razorpay states zero setup fees and zero annual maintenance charges, though its new-merchant offer terms mention a possible Rs 199 plus tax KYC processing fee. Cashfree states zero setup fees. It offers premium services, such as a dedicated account manager and priority support, for an annual maintenance charge that is not published on its pricing page.