When you receive payments from customers on your SmartBiz by Amazon store, Razorpay — the payment infrastructure partner — securely processes these payments. For each successful transaction, Razorpay charges a small transaction fee to cover payment processing, technology and settlement costs. Understanding how these fees work helps you know how much you’ll receive in your account after each order is paid, and what influences the fees (such as payment method or transaction size).
In this article, we will cover the following topics:
1. When will I receive payment for my orders?
You will receive payment for your order in 2-3 working days after the customer has successfully made their payment on your SmartBiz store.
2. What are the transaction fees?
Depending on the mode of payment selected by the customer, the following transaction fees will be applied for an order.
Payment Methods |
Transaction Threshold (GMV)/Type |
Effective Date |
Platform Fees* (per Transaction) |
Debit Cards (except Rupay) |
More than ₹ 2000 |
Current |
2% |
Debit Cards (except Rupay) |
Less than or equal to ₹ 2000 |
Current |
2% |
Rupay Debit Card |
All transactions |
Current |
2% |
UPI* (Updated fees which will be effective from Jan 2026 are added below) |
0 – ₹ 25 L |
Till 31st Dec 2025 |
0.75% |
₹ 25 L – ₹ 5 Cr |
0.30% |
||
More than ₹ 5 Cr |
0.10% |
||
Credit Cards |
Visa / Master / Rupay/ Amex / Diners |
Current |
2% |
Net Banking |
All available banks |
Current |
2% |
Mobile Wallets |
Other than Paytm |
Current |
2% |
EMI/Cardless EMI |
Zest money, Flex money, Bajaj finserv, Walnut 369 |
Current |
2% |
Paylater |
epay later, Get simpl, pay later icici, Lazypay |
Current |
2% |
Settlement cycle (domestic) |
T+2 working days |
||
| *Platform fee: Razorpay levies a platform fee for the payment acceptance infrastructure and related services provided by it. Specifically, the platform fee comprises the following: | |||
| (a) Merchant Discount Rate (MDR): the fee charged in relation to settlement of the transactions, and includes the interchange fee, switching fee and any other fees that may be levied by acquiring banks, card networks, issuing bank or any other participant entity involved in the payment chain for completion of the transaction. Where the limits on MDR are not specified under applicable law, MDR is charged in accordance with market practice and per the charges specified by our banking partners and other participants in the payment processing flow. | |||
|
(b) Technology Fee: Charge levied by Razorpay on the merchant towards: providing a unique, seamless and best in class payment experience for the merchant’s customers. *Setup & AMC cost is non-refundable. (waived off ) *For Rupay Debit Cards and UPI transactions, Platform Fees comprises of zero MDR (in accordance with current regulations) and technology fees only. | |||
Payment Methods |
Transaction Threshold (GMV)/Type |
Effective Date |
Platform Fees* (per Transaction) |
UPI* |
0 – ₹ 25 L |
From Jan 2026 |
1% |
₹ 25 L – ₹ 5 Cr |
From Jan 2026 |
0.30% |
|
More than ₹ 5 Cr |
From Jan 2026 |
0.10% |
FAQs
1. Why am I charged different fees for different payment methods?
Razorpay’s transaction fees vary by payment mode (e.g., UPI, cards, net banking). This is because the cost of processing each type of payment (such as card network charges or technology costs) differs, and the fees reflect those variations.
2. How do Razorpay fees affect the amount I receive?
The platform fee is deducted before settlement. So the amount you see settled to your bank account will be the order payment minus Razorpay’s transaction fee. The exact fee depends on the payment method and any thresholds specified in the fee table.
3. Why are UPI fees different above ₹25 L or ₹5 Cr?
For UPI transactions, Razorpay uses tiered pricing — once your cumulative UPI sales cross ₹25 lakh or ₹5 crore, the platform fee percentage reduces for subsequent UPI transactions. This helps larger sellers reduce costs on high-volume UPI transactions.
4. Are there any other charges (like setup, AMC, or hidden fees)?
According to current terms, Razorpay waives setup and AMC costs, and the fees shown in the fee table are per-transaction platform fees only. There are no additional hidden charges for payment processing itself.
5. Why do I still see fees on UPI if UPI transactions are usually free?
NPCI (the UPI network) doesn’t charge merchants an MDR fee for bank-to-bank UPI transactions, but Razorpay may still apply its technology/platform fee for providing the payment acceptance infrastructure. So even on UPI, a small platform fee appears in your fee table.
6. Will these fees change over time?
Yes — Razorpay can update its fee structure as per market conditions or regulatory changes. If fees change, those will apply to new transactions from the effective date onward. Always refer to this article’s last updated date to ensure you’re seeing the current fee structure.
7. What happens if a transaction is refunded or reversed?
If you refund an order, Razorpay will adjust the fee as per its standard refund policy (e.g., refund of fees may vary by payment method and Razorpay’s terms). Always check your Razorpay dashboard for refund charges and reversals in detail.