The gateway takes a cut of every sale
A payment gateway is what actually moves money from your buyer to you. Razorpay, Cashfree, and PayU are three of India's biggest, and they're more alike than different. But the small differences - fees, payout speed, and supported methods - add up over thousands of orders. Here's how to choose between them.
Fees: read past the headline rate
Each gateway advertises a per-transaction rate, often around 2% for standard methods. But the real cost depends on the method - UPI, cards, net banking, and international cards can all be priced differently. Ask for the rate on the methods you'll actually use most, not just the headline number.
Payout speed and settlement
How fast the gateway settles money to your bank affects your cash flow. Standard settlement takes one or two days - Razorpay lists T+1 as typical and PayU lists T+2 - and faster settlement usually costs more. If working capital is tight, a quicker, reliable payout cycle can be worth a slightly higher fee. Check the standard cycle before you sign up.
Supported methods and reach
A gateway that handles your buyers' preferred methods smoothly will quietly lift your conversion.
Methods at a glance
| Method or detail | Razorpay, Cashfree, PayU |
|---|---|
| UPI, cards, net banking | All three cover them |
| International card support | Check the details for each |
| EMI options | Check the details for each |
| How clean the UPI flow feels on mobile | Check the details for each |
Onboarding and support
As a small seller, how fast you can get verified and live matters. So does the quality of support when a payment fails at 9pm during a sale. Ask other sellers about onboarding time and support responsiveness before you commit. These differ more than the fee sheets suggest.
What each gateway charges today
| Detail | Razorpay | Cashfree | PayU |
|---|---|---|---|
| Standard domestic rate | 2% per successful transaction | 1.95% platform fee | 2% on domestic cards, net banking and wallets |
| International cards | Up to 3% | 2.99% on Visa and Mastercard | 3% |
| Setup fee | Rs. 0 | Zero | No set-up fee |
| GST on the fee | 18% | 18% | 18% |
| Standard settlement | Typically T+1 or instant | T+1 by 8 pm on its new-seller offer | T+2 |
What the rate gap is worth in rupees
The headline rates sit close together, so do the maths before you switch for a lower one. Say you sell ₹10 lakh a month through the gateway. At 2%, the fee is ₹20,000, and 18% GST on that fee adds ₹3,600. At Cashfree's 1.95%, the fee is ₹19,500, plus ₹3,510 GST. The gap is ₹590 a month. That is real money, but it is small next to the sales you lose when payments fail. A gateway that saves a few more UPI payments on a busy day can pay for that gap many times over. So weigh success rates and support, not just the rate card.
UPI is where the rate cards differ most
Many of your buyers will pay by UPI, so this is the line to read most closely. The three pages say quite different things. Razorpay says standard bank-to-bank UPI has zero MDR, but a 2% platform fee still applies. PayU says merchant UPI pricing varies by business type and volume. Cashfree says its UPI charges are as per the applicable law. So none of them gives you one simple UPI number to compare. Before you sign, ask each one in writing: what will I pay on a ₹500 UPI order? Their answer, not the headline rate, tells you your real cost.
New-seller offers and their fine print
Razorpay and Cashfree were both running launch offers when we checked in September 2026. Razorpay's pricing page showed 0% platform fees for the first 90 days, with an asterisk, so read its terms. Cashfree offers new merchants zero platform fees on their first ₹20 lakh of sales, until 31 March 2027. Its terms leave out Amex, Diners, corporate cards, EMI, pay later and international cards. GST is still charged, worked out on the standard 1.95% rate. And Cashfree can pull the offer if credit cards make up 60% or more of your sales. An offer is a nice start, but pick the gateway you would still want after it ends.
Fees come off before the money lands
None of the three sends you a bill at the end of the month. Razorpay says its fee and the GST on it are taken from each payment at the source. The rest is settled to your bank account. Cashfree also takes GST out of your settlements. So a ₹1,000 order at 2% lands as ₹976.40, not ₹1,000. Match your bank credits to your orders every week. That is how you spot a wrong rate, a missed payout or a refund you forgot. Keep the gateway's settlement report next to your order list, and the numbers will line up.
What faster payouts cost
Each gateway will pay you faster if you ask, and faster costs more. Cashfree lists instant settlements at a 0.30% platform fee, before GST, and says the rate can vary with your risk profile. PayU says priority or same-day settlement may carry a nominal fee based on your business profile. Razorpay offers an instant settlement cycle too. For most small stores, the standard cycle is fine. Pay for speed only when a festive rush or a big stock order leaves you short of cash.
A checklist before you sign up
- Note your top three payment methods and your average order value.
- Ask each gateway for its rate on those methods in writing, UPI included.
- Add 18% GST to every fee before you compare.
- Check the standard settlement cycle and what faster payouts cost.
- Read the terms of any launch offer, and the rate after it ends.
- Test the checkout on a low-cost phone over mobile data.
- Ask two sellers in your category how support handled a failed payment.
The honest truth: they're close
For most small Indian stores, any of the three will do the job well. Don't agonise over it. Pick the one with clear pricing on your top methods, a payout speed you can live with, and support you trust. You can switch later if it doesn't fit - this isn't a forever decision.
How The Storemate fits
On a paid plan, The Storemate connects to your own Razorpay account, so if Razorpay fits your needs, it's ready to plug in - UPI, cards, and COD live, with the gateway fee going straight through your own account. Bring your keys and start selling.