A client in Pune says she would rather pay by card than scan a QR code. Another asks whether you have a "payment link". You start reading about Razorpay, Cashfree and PayU, and every page seems to say "2%" while your first test payment shows a smaller credit than you expected. Some freelancers sign up for a gateway they do not need, and others skip one and lose the card-paying client.
A payment gateway for freelancers in India is a service that lets your client pay by card, netbanking, wallet or UPI through a hosted checkout, and takes a percentage fee plus 18 percent GST on that fee. The three common names, Razorpay, Cashfree and PayU, all publish a headline rate of about 2 percent on domestic payments, which works out to roughly 2.36 percent once GST is added. This post compares what they charge, what KYC an individual needs, and when plain UPI is enough.
Do you need a payment gateway or is UPI enough?
Most freelancers who bill Indian clients do not need a gateway. UPI to your own VPA or a bank transfer costs you nothing, settles from the client's bank to yours, and needs no sign-up. A gateway earns its fee only when your clients specifically want to pay by card, when you take payments from abroad by card, or when you need a checkout link for something recurring. If your clients already pay you on UPI, putting the VPA and QR on the invoice, as the guide to adding UPI to a freelance invoice explains, covers it.
What Razorpay, Cashfree and PayU charge, side by side
Razorpay and PayU both list 2 percent for domestic cards, netbanking and wallets, and Cashfree lists 1.95 percent as its standard rate. Setup fee is ₹0 at all three. The rate you pay depends on the mode, so the table below is a starting point, not a quote.
Read the live pages yourself: Razorpay's pricing page, Cashfree's charges page and PayU's pricing page. Cashfree lists both 1.95 percent and 2.0 percent, so ask which one applies to the mode your clients will use. Razorpay lists 2.15 percent for corporate cards. Cashfree has also run a time-limited offer for new sign-ups from 21 July 2026 that waives platform fees on up to ₹20 lakh of cumulative payments, then charges 1.95 percent plus taxes. Its banner says the offer runs till 31 March 2027, and it excludes Amex, Diners, EMI, pay later and international payments. Treat it as a promotion, not the base rate.
The GST on gateway fees, worked on ₹10,000
The gateway charges GST at 18 percent on its fee, not on the amount your client pays you. At a 2 percent fee, a ₹10,000 payment carries a ₹200 fee plus ₹36 GST, so you lose ₹236 and receive ₹9,764. PayU lists GST as "applicable extra", so confirm its rate on your invoice. This GST is a cost of using the gateway. Whether you must register for GST yourself depends on your turnover and is a separate question, covered in the guide on when GST registration is required for freelancers.
Why "UPI is free" is not true on a gateway
UPI between your client and your own VPA is free, but UPI through a gateway is not. Razorpay's pricing shows zero MDR on UPI, which is the bank-side charge, yet it still applies its own 2 percent platform fee. So a ₹10,000 UPI payment taken through Razorpay costs the same ₹236 with GST as a card payment would. If a client only wants to pay by UPI, giving them your VPA directly beats routing the same UPI payment through a checkout.
KYC for individuals and sole proprietors
Yes, an individual can open a Razorpay account without a GST certificate. An individual or unregistered business signs up with PAN, address proof and a bank account number with IFSC, and Razorpay checks them through CKYC or DigiLocker. A sole proprietor needs two of five business proofs: Udyam, a GST certificate, a Shop and Establishment certificate, an IEC, or a postpaid mobile bill. The owner's PAN and address proof are needed too. A GST certificate is not mandatory on that list. Razorpay's KYC documents page has the current list. Cashfree and PayU set their own onboarding rules, so ask their support which documents an individual needs before you apply.
Settlement time: what to check before you sign up
Settlement usually takes a few working days, not minutes, so check it before you sign up. PayU's pricing page documents T+2 as standard, with same-day settlement for some categories. For Razorpay and Cashfree, read the settlement terms in your own dashboard before you promise a client a date. Instant settlement, where offered, carries a separate fee. Cashfree lists 0.30 percent excluding GST for it. Ask about the fee for any instant option before you turn it on. A gateway that settles in two working days is no use if you quoted the client "paid today, delivered today".
When a gateway makes sense
A gateway makes sense when card payment is a real requirement, such as a client whose finance team only pays by card, or a customer abroad who wants to pay by card. International cards cost more: PayU lists 3 percent, Razorpay up to 3 percent and Cashfree 2.99 percent, which is about ₹354 on ₹10,000 at 3 percent plus 18 percent GST. For large foreign payments, compare a bank wire or a transfer service too, as the guide to receiving international payments as a freelancer compares. Card payments can also be disputed by the cardholder, and the guide to a chargeback dispute explains how to defend one.
Payment links carry no extra charge for the link itself, but ask whether the standard fee still applies to payments made through one. Whatever you choose, the invoice itself still needs to be right, as the guide to GST invoices for freelancers explains.
Getting paid without a gateway: UPI and bank details on the invoice
For most domestic freelancers, the lowest-cost setup is an invoice with your UPI QR, VPA and bank details printed on it, and a clear due date. Rinto prints your UPI QR code and bank details on every invoice, so the client pays you directly into your own account. Rinto does not process payments and does not detect them, so you mark an invoice paid yourself and always know who owes you what. Rinto's free plan covers 5 invoices a month, and the free invoice template at the free invoice generator needs no sign-up.
Gateway rates change, so read each live pricing page before you sign up.
Frequently Asked Questions
Which payment gateway is best for freelancers in India?
There is no single best one, because the right choice depends on what your clients pay with and how you want to get settled. Razorpay and PayU both list 2 percent on domestic cards, netbanking and wallets, and Cashfree lists 1.95 percent as its standard rate, each plus 18 percent GST on the fee. Setup is ₹0 at all three. Compare the live pricing pages, the documents each asks an individual for, and the settlement terms in your dashboard. If your clients mostly pay on UPI, you may not need any of them.
Can an individual get a Razorpay account without GST?
Yes. Razorpay's KYC page lists a path for an individual or unregistered business that needs PAN, address proof and a bank account number with IFSC, verified through CKYC or DigiLocker. A sole proprietor needs two of five business proofs, which are Udyam, a GST certificate, a Shop and Establishment certificate, an IEC or a postpaid mobile bill, plus the owner's PAN and address proof. GST is not mandatory in that list. Razorpay can change its requirements, so check the current KYC documents page before you apply.
Is there GST on payment gateway charges?
Yes. Razorpay and Cashfree charge 18 percent GST on their platform fees, and PayU says GST is applicable extra without stating the rate on its pricing page. The GST is charged on the fee, not on the amount your client pays. At a 2 percent fee, a ₹10,000 payment costs ₹200 plus ₹36 GST, which is ₹236 in total. This GST is a cost of the gateway and is separate from whether you must register for GST on your own income. Ask a CA how to treat the fee in your books.
What is the Razorpay fee for UPI payments?
Razorpay lists zero MDR on UPI, but it still applies its 2 percent platform fee, plus 18 percent GST on that fee. On a ₹10,000 UPI payment that is ₹200 plus ₹36 GST, so ₹236. This is arithmetic on the published rate. So a UPI payment through a gateway is not free, even though UPI to your own VPA is. If a client is happy to pay on UPI, share your VPA or QR directly. Check Razorpay's live pricing page for the current figure before you decide.
How long does Razorpay or PayU take to settle money?
PayU's pricing page documents T+2 as its standard settlement, with same-day settlement available for some categories. For Razorpay, read the settlement terms in your own dashboard, because the cycle depends on your account. Instant settlement, where offered, usually carries a separate fee, so ask what it is before you switch it on. Plan your invoice due dates around the slower figure, not the faster one. A client who pays on the due date by card still needs a few more working days before the money reaches your account, so build that gap into your cash-flow plan and your payment terms.