Getting paid online in India is three separate jobs: choosing a gateway, passing its KYC, and integrating it into whatever you sell. As of 22 September 2026, Razorpay and PayU publish a standard domestic rate of 2% and Cashfree 1.95%, all plus 18% GST and none with a setup fee, so the choice turns on settlement cycle, products and support rather than the headline rate. The gateway controls the paperwork and the approval; the integration — including the server-side webhook that confirms a payment — is the engineering, and that is the part we do.
What does a payment gateway do for your business?
A payment gateway collects the money, routes it through the card networks, UPI or net banking, and settles it into your bank account on a fixed cycle. It also handles refunds, failed-payment retries and chargebacks, and sends a webhook that tells your system a payment really succeeded. That webhook is the part your integration must get right.
Never mark an order paid from the browser alone. A browser can be closed, reloaded or spoofed; the server-side webhook and its signature check are what make the sale real.
What documents will KYC ask for?
The set depends on your business type — individual, proprietorship, partnership, LLP or private limited — and on the products you enable. Every type needs a PAN and a bank account number with IFSC. Registered entities add their incorporation papers and a declaration of every owner above 10%. Prepare these before you start, because a half-finished application stalls.
Razorpay’s list, from its KYC Documents for Business Types page (read 22 September 2026):
- Individual / unregistered business — PAN and mobile number for identity (auto-fetched from CKYC where it works); Aadhaar, passport or another photo ID for address; bank account number and IFSC, with a cancelled-cheque video if bank verification fails.
- Proprietorship — owner’s PAN; a government address proof (Aadhaar, Voter ID or passport); bank account number and IFSC; and two of: MSME/Udyam certificate, GST certificate, Shop & Establishment certificate, Import Export Code, or a postpaid mobile bill.
- Partnership — partnership deed (registration certificate if registered); firm PAN; bank details; the authorised signatory’s PAN, address proof and power of attorney; a UBO declaration naming every partner above 10%.
- LLP — certificate of incorporation or LLPIN and the LLP deed; LLP PAN; bank details; authorised signatory’s PAN, address proof and power of attorney; UBO declaration with ownership percentages.
- Private or public limited company — certificate of incorporation, CIN, MoA and AoA (auto-fetched from CKYC where it works); company PAN; bank details; the authorised signatory’s PAN, address proof and a board resolution or power of attorney; a UBO declaration of every shareholder above 10%.
Trusts, societies, HUFs, Section 8 companies and government bodies have their own lists on the same page. Regulated categories add a licence on top: FSSAI for food, IRDAI for insurance, SEBI for advisory, IATA for travel. Razorpay’s own December 2025 onboarding guide adds one practical point for companies: the website you are activating for should already carry its terms and conditions and privacy policy when you apply.
How long does activation take?
Activation time is set by the gateway’s risk review, not by your integration work. Razorpay’s documentation does not commit to a fixed activation time; its own onboarding guide, published 2 December 2025, says approval typically takes two to seven working days across providers, depending on how complete the documents are. Build against test credentials while the application is under review.
The day activation lands, you swap the test keys for live ones and nothing else changes. A missing document is the usual cause of a delay, which is why the checklist above comes before the integration.
Which gateway should I choose?
Compare on settlement cycle, the products you need and support responsiveness, not the headline rate alone. All three gateways below publish a standard domestic rate close to 2%, charge no setup fee, and add 18% GST on their fee. Rates vary by payment method, and PayU prices UPI by business type and volume, so a fee table is only true on the day it was read.
Published standard pricing for Indian payment gateways, as of 22 September 2026
| Gateway | Standard domestic rate | Settlement cycle | Setup fee / AMC | Source (read 22 Sep 2026) |
|---|---|---|---|---|
| Razorpay | 2% per successful transaction, all domestic instruments; international cards up to 3%; 18% GST on the fee | Docs: T+2 working days standard for domestic payments; the pricing page says “T+1 or instant”. Instant settlement is a paid add-on | ₹0 setup, ₹0 AMC | razorpay.com/pricing · About Settlements |
| PayU | 2% for Visa, Mastercard, net banking, BNPL and wallets; UPI priced by business type and volume; 3% for Amex, Diners, EMI and international; 18% GST | T+2 standard; same-day and priority settlement by business category | None — “no setup, onboarding, or annual fees” | payu.in/pricing |
| Cashfree | 1.95% standard platform fee on domestic cards, UPI, net banking and wallets; 2.99% Visa/Mastercard international; 18% GST | T+2 days standard; instant settlement in 15 minutes as an option | Zero setup fee, no AMC | Payment gateway charges · Settlement guide |
Two things the table cannot show. Razorpay charges its 2% platform fee on UPI and RuPay debit even though its pricing page labels those methods “Zero MDR”, so “zero MDR” on a pricing page does not mean zero cost to you. And on 22 September 2026 Cashfree was running a limited-period offer for new merchants — 0% platform fee on the first ₹20 lakh of gross merchandise value, stated to run to 31 March 2027, with 18% GST still charged on the standard 1.95% — so the table carries the standard rate that applies once an offer ends, because that is the number you will pay for the life of the account.
Links, checkout or subscriptions — which do I need?
Payment links suit service businesses that invoice per job: you send a URL or QR for one amount and nothing is built. Checkout suits anything with a cart or a booking, because the order, the amount and the confirmation live in your system. Subscriptions with a mandate suit recurring billing and are the only correct choice for a monthly plan.
Collecting a recurring fee through repeated links means chasing every customer, every month, forever. A mandate collects it while you sleep and tells you when it fails.
What does Vedatricks do in a payment-gateway setup?
Three things. We send you the partner referral link and stay with you through the account application; we integrate the gateway into your website or software, including the webhook that confirms payment server-side; and we test refunds and failure paths before you go live. Razorpay approves the account; we make it work in your product.
Disclosure. Vedatricks is a Razorpay Partner — we set up and integrate Razorpay for you. Razorpay approves merchant accounts. Vedatricks earns a referral commission from Razorpay and may charge a separate, disclosed integration fee.
What should I disclose to my customers?
Publish refund and cancellation terms, a grievance contact and your legal identity. Under the Consumer Protection (E-Commerce) Rules 2020, an e-commerce entity — which covers a business selling its own goods or services through its website or app — must display its legal name, principal geographic address and grievance officer contact details, acknowledge a complaint within 48 hours and redress it within one month. Build those pages while the KYC is in review.
Those pages cost nothing to write and prevent a launch delay, because the gateway’s own review looks for them too.
Sources
Third-party numbers in this post were read on 22 September 2026 from the provider’s own pages.
- Razorpay pricing — https://razorpay.com/pricing/
- Razorpay docs, About Settlements — https://razorpay.com/docs/payments/settlements/
- Razorpay docs, KYC Documents for Business Types — https://razorpay.com/docs/payments/business-types-kyc-documents/
- Razorpay blog, Documents required for a payment gateway in India (2 December 2025) — https://razorpay.com/blog/documents-required-for-payment-gateway
- PayU pricing — https://payu.in/pricing/
- Cashfree payment gateway charges — https://www.cashfree.com/payment-gateway-charges/
- Cashfree help centre, Pricing FAQs — https://www.cashfree.com/docs/help/account/pricing
- Cashfree settlement and reconciliation guide — https://www.cashfree.com/settlement-and-reconciliation-guide/
- Consumer Protection (E-Commerce) Rules 2020, gazette notification (PDF) — https://thc.nic.in/Central%20Governmental%20Rules/Consumer%20Protection%20(E-Commerce)%20Rules,%202020.pdf
- Consumer Protection (E-Commerce) Rules 2020, Rule 4, text reproduced at consumerprotection.in — https://www.consumerprotection.in/rule-4-duties-of-e-commerce-entities/
- Razorpay Partner Program — https://razorpay.com/partners/
- Razorpay service partners documentation — https://razorpay.com/docs/partners/service-partners/
- Adding sub-merchants as a Razorpay service partner — https://razorpay.com/docs/partners/service-partners/add-submerchants/
- Razorpay partner terms — https://razorpay.com/s/terms/partners/