All three quote roughly 2% — but annual fees, chargeback costs, and settlement speed change the real math.
Razorpay vs Cashfree vs PayU: What It Actually Costs to Use Each
Razorpay, Cashfree, and PayU all quote around 2% per transaction — but annual maintenance fees and chargeback costs tell a different story. Here's the real comparison.
Razorpay
Cashfree
PayU
On the surface, Razorpay, Cashfree, and PayU all quote something close to 2% per transaction. The real cost of using any of them shows up in the fees that don't make the homepage.
Headline transaction rates
- Razorpay — 2% standard domestic TDR, zero annual maintenance charge, zero setup fee.
- Cashfree — 1.75% domestic rate (breaks down to roughly 1.6% + a 0.25% platform fee before GST), but with a ₹4,999/year annual maintenance charge — about ₹416/month regardless of how much you actually process.
- PayU — 2-2.5%, depending on plan tier and negotiated volume.
Where the real cost differences hide
Chargebacks. A disputed transaction costs ₹100 at Razorpay, ₹150 at Cashfree, and ₹200 at PayU — a meaningful gap for any business with a chargeback rate above the industry baseline.
Annual fees. Cashfree's lower headline rate only wins for merchants processing enough volume that the ₹4,999/year AMC gets absorbed by the 0.25 percentage-point rate advantage over Razorpay. Below that volume threshold, Razorpay's zero-AMC structure is cheaper overall despite the higher quoted rate.
International transactions. The gap widens here: roughly ₹7 + 3.5% at Razorpay versus ₹15 + 2.5% at Cashfree versus ₹15 + 3.9% at PayU — meaning the "cheapest" gateway for domestic transactions isn't necessarily the cheapest for a business with meaningful export or international-card volume.
Settlement speed. All three settle in roughly T+2 by default; Cashfree offers instant settlement at an extra 0.25% for merchants who need same-day cash flow.
How to actually decide
Run your own numbers against your expected monthly volume, average order value, and chargeback rate rather than comparing headline percentages — a gateway that's cheaper on paper can lose to one with zero annual fees once your actual transaction mix is factored in. Promotional pricing (Cashfree, for instance, has run 0% platform-fee promotions up to a GMV threshold) also shifts this calculus temporarily, so check current offers directly before signing.
Sources
Payment Gateway Charges Comparison, xFlowPay, Best Payment Gateway for Small Business in India 2026, InvestingPro.
Frequently asked questions
It depends on your volume. Cashfree's headline 1.75% rate looks cheapest, but its ₹4,999/year maintenance fee means a low-volume merchant can end up paying more overall than with Razorpay's zero-AMC 2% structure — do the math on your expected monthly volume before picking on rate alone.
No. This is independent comparison coverage based on publicly available pricing pages and reporting as of mid-2026. Gateway pricing, especially promotional rates and annual fees, changes frequently — confirm current terms directly with each provider before committing.