For any Indian business selling online, the payment gateway is the most important piece of plumbing on the website. It decides which payment methods your customers can use, how smooth checkout feels on a phone, how quickly money reaches your bank account and how much you pay on every single order. Get it right and nobody notices. Get it wrong and you will see abandoned carts, “payment debited but order not placed” complaints and hours lost reconciling settlements.
Razorpay, PayU, CCAvenue and Stripe are among the names that come up most often when businesses plan payment gateway integration in India. They overlap a great deal, but they are not interchangeable. Each has different strengths in onboarding, payment methods, international support, developer tooling and pricing structure.
This guide compares the four in practical terms, explains how integration actually works on WordPress, WooCommerce and custom sites, covers the RBI rules every merchant should know, and finishes with a step-by-step integration checklist. Pricing and features change frequently, so treat any figures as indicative and confirm current terms on each provider’s website before you sign up.
Key takeaways
- All four gateways support the core Indian payment methods on standard plans; differences lie in onboarding, tooling, international support and extras.
- Standard domestic pricing commonly sits around 2% per transaction plus GST on the fee, with higher rates for international and some premium cards.
- Razorpay and PayU are popular all-rounders for Indian businesses; CCAvenue is known for very broad payment options and multi-currency; Stripe excels for global and subscription businesses where available.
- Always verify payments on the server (signatures and webhooks), never only in the browser.
- RBI rules on payment aggregators, card tokenisation and recurring mandates affect how you integrate and store customer data.
What does a payment gateway actually do?
When a customer clicks “Pay”, the gateway securely collects their payment details, routes the transaction through banks, card networks or UPI, returns a success or failure response to your website, and later settles the money (minus fees) into your bank account. In India, most popular providers operate as payment aggregators: they onboard merchants, collect payments on their behalf and settle funds, which is why they run KYC checks on your business and your website.
A good gateway also gives you a dashboard for refunds, settlement reports and dispute handling, plus tools such as payment links, subscriptions and invoices that are useful even beyond your website.
Razorpay vs PayU vs CCAvenue vs Stripe: overview
| Feature | Razorpay | PayU | CCAvenue | Stripe |
|---|---|---|---|---|
| Core methods (UPI, cards, net banking, wallets) | Yes | Yes | Yes | Cards and selected local methods; check current India support |
| Onboarding | Online, generally quick for standard businesses | Online, generally quick | Online, with thorough document checks | New Indian accounts have been invite-only since 2024; confirm availability |
| Developer experience | Strong docs, SDKs and APIs | Good docs and SDKs | Functional, more traditional | Widely regarded as best-in-class |
| International / multi-currency | Supported on request | Supported on request | Known for wide multi-currency support | Core strength globally |
| Subscriptions / recurring | Yes | Yes | Yes | Yes (very mature) |
| Payment links and pages | Yes | Yes | Yes | Yes |
| Official WooCommerce plugin | Yes | Yes | Yes | Yes |
| Typically suits | Startups, D2C, SaaS, SMEs | SMEs to large enterprises | Businesses wanting maximum payment choice and international buyers | Global SaaS and businesses selling mainly overseas |
Razorpay
Razorpay is a Bangalore-headquartered provider that has become a default choice for many Indian startups and growing businesses. Its strengths are a clean dashboard, well-documented APIs and a broad product set beyond the basic checkout: payment links, payment pages, subscriptions, invoices, split payments for marketplaces and optional faster settlement. Its WooCommerce and Shopify integrations are mature, and its checkout is optimised for UPI and mobile users.
Consider it if: you want fast onboarding, good developer tooling and room to add features such as subscriptions or marketplace payouts later.
PayU
PayU India is one of the longest-established gateways in the country and serves everyone from small merchants to large enterprises. It supports a wide range of payment methods, including EMI options, and offers plugins for the major e-commerce platforms. Many businesses choose PayU for its reliability at scale and its range of affordability options at checkout.
Consider it if: you sell higher-value products where EMI and affordability options matter, or you want an established provider with enterprise capability.
CCAvenue
CCAvenue is one of India’s oldest online payment brands and is known for offering a very wide choice of payment options, along with multi-currency processing that lets international customers see and pay prices in their own currency. Onboarding can involve more documentation, and its interface feels more traditional than newer competitors, but it remains popular with exporters, travel, education and businesses with overseas customers.
Consider it if: you have a significant international customer base or want the broadest possible list of payment options.
Stripe
Stripe is the global benchmark for developer experience, with excellent documentation, powerful subscription billing and strong support for international cards. However, its India business has changed: onboarding for new Indian businesses was moved to invite-only in 2024. If you already have a Stripe India account, or you sell mainly to overseas customers through an entity outside India, it can be an excellent choice. For most new domestic merchants, confirm availability before building around it.
Consider it if: you run a SaaS or digital product business selling globally and have access to an account.
Tip: Other credible options, such as Cashfree, PhonePe Payment Gateway and Paytm Payment Gateway, are also worth comparing. The right provider is the one that supports your customers’ preferred methods at a fair rate with dependable settlements.
Understanding payment gateway pricing
Most providers publish a standard plan and negotiate custom rates for higher volumes. When comparing, look beyond the headline percentage:
- Transaction discount rate (TDR): the percentage charged on each successful payment. Standard domestic rates commonly sit around 2%, with international cards, American Express, Diners and corporate cards usually priced higher.
- GST on fees: 18% GST is charged on the gateway’s fee, not on your full transaction value.
- Setup and annual fees: many standard plans have none, but some premium plans or add-ons do.
- Settlement cycle: standard settlement is often T+2 working days; faster or instant settlement may cost extra.
- Refund fees: the original transaction fee is often not returned when you refund an order.
- International and currency conversion charges: check both the fee and the exchange rate used.
- Chargeback fees: some providers charge for handling disputes.
When comparing quotes, model your expected monthly volume and payment mix (for example 60% UPI, 30% cards, 10% net banking) against each provider’s rate card. The cheapest headline rate is not always the cheapest overall once refunds, international orders and settlement speed are included.
How payment gateway integration works
There are four common ways to connect a gateway to your website. The right one depends on your platform and how much control you need.
| Integration type | How it works | Effort | Best for |
|---|---|---|---|
| Platform plugin | Install the official plugin (e.g. for WooCommerce), add API keys, configure settings | Low | WordPress/WooCommerce and Shopify stores |
| Standard / hosted checkout | Customer pays on a secure checkout overlay or page provided by the gateway | Low to medium | Custom websites wanting quick, compliant integration |
| Custom API integration | Your server creates orders through the API and handles responses and webhooks | Medium to high | Custom apps, complex flows, marketplaces |
| Payment links / pages | Generate a link or simple page and share it by WhatsApp, SMS or email | None | Service businesses, invoices, businesses without a full website |
For most businesses, a plugin or the gateway’s standard checkout is the right call. Building a fully custom card form that handles raw card data brings PCI DSS compliance obligations that small businesses are rarely set up to meet.
Integrating with WooCommerce
Each of the four gateways offers an official WooCommerce extension, and many are listed on the WooCommerce marketplace or the WordPress plugin directory. The typical process is:
- Install and activate the official plugin (avoid unofficial or “nulled” versions).
- Enter your test API keys from the gateway dashboard.
- Configure the payment title, description, capture settings and order status after payment.
- Add the webhook URL provided by the plugin into your gateway dashboard, with a secret.
- Run test transactions, including failures and refunds.
- Switch to live keys after KYC approval and repeat tests with small real payments.
RBI rules every online merchant should know
India’s payments ecosystem is closely regulated by the Reserve Bank of India. You do not need to be an expert, but you should understand how these rules affect your website:
- Payment aggregator regulation: online payment aggregators are regulated by RBI and must carry out merchant due diligence. Expect KYC checks and website reviews, and choose a provider authorised to operate.
- Card tokenisation: merchants must not store customers’ full card numbers. “Saved cards” work through network tokens managed by the gateway, so never build your own card storage.
- Recurring payments: subscriptions on cards and UPI need an e-mandate registered with the customer’s authentication, and RBI rules govern pre-debit notifications and when additional authentication is needed.
- Refunds and disputes: refunds normally go back to the original payment method, and clear refund policies help you defend chargebacks.
Tip: Have your privacy policy, terms, refund, shipping and cancellation policies, plus your business address and contact details, live on the website before applying. Gateways review your site during onboarding, and missing policies are one of the most common reasons approvals are delayed.
Step-by-step payment gateway integration checklist
- List your requirements: payment methods, COD alongside online payment, subscriptions, international customers, split payments and expected monthly volume.
- Shortlist two or three providers and request their current pricing and settlement terms in writing.
- Prepare KYC documents: business PAN, GST certificate (if registered), incorporation or partnership documents, a cancelled cheque or bank proof for a current account, and the authorised signatory’s ID.
- Get your website ready with policies, contact details, pricing and product or service information.
- Integrate in test mode using the official plugin or SDK.
- Verify every payment on your server using the gateway’s signature verification. Never mark an order paid purely because the browser was redirected to a “success” page.
- Configure webhooks for payment success, failure, refunds and disputes, and protect them with a secret.
- Check capture settings. Some gateways separate authorisation from capture; if capture is not automatic, uncaptured payments may be refunded after a set period.
- Test real scenarios: success, failure, user closing the window mid-payment, slow network, duplicate clicks and partial and full refunds.
- Go live with live keys and confirm with small real transactions on each method.
- Reconcile the first settlements against orders and invoices to make sure fees, GST and amounts match.
- Secure the dashboard with two-factor authentication and separate user roles for finance, support and developers.
Common integration problems and how to fix them
| Problem | Likely cause | Fix |
|---|---|---|
| “Money debited but order not placed” | Customer closed browser before redirect; no webhook | Configure webhooks so orders update server-side |
| Orders stuck as “pending payment” | Webhook URL wrong, blocked by firewall or caching | Check webhook logs; exclude the endpoint from caching and security rules |
| Payments auto-refunded | Payments authorised but never captured | Enable automatic capture or capture via API |
| UPI payments fail on mobile | Outdated plugin or checkout script conflict | Update the plugin; test on real devices with UPI apps |
| Duplicate orders | Customers double-clicking or retrying | Disable the pay button after click; use idempotent order creation |
| Settlement amounts do not match | Fees, GST, refunds and chargebacks deducted | Use settlement reports and reconcile line by line |
Which payment gateway should you choose?
As a rule of thumb:
- Most Indian SMEs and D2C brands: Razorpay or PayU will cover your needs with fast onboarding and strong WooCommerce support. Compare negotiated rates and settlement terms.
- Businesses with many international customers: consider CCAvenue for multi-currency display, or Stripe if you have access and sell globally.
- Subscription and SaaS businesses: Razorpay Subscriptions or Stripe Billing are both strong; check how each handles RBI e-mandate rules.
- High-value products: prioritise EMI and affordability options at checkout.
It is also perfectly reasonable to integrate two gateways, for example one primary and one backup, or one for domestic and another for international payments. Just make sure the checkout stays simple for customers.
Before launch, run through our e-commerce launch checklist, and keep your store patched and protected with the steps in our WordPress security guide. If you also want to send order updates by SMS or WhatsApp, see our comparison of SMS gateways and the WhatsApp Business API.
How Ciphercup can help
Payment gateway integration has been one of Ciphercup’s specialities since we started in 2014. From our Bangalore and Kochi offices, we help businesses choose a gateway, prepare their website for KYC, integrate and test payments on WooCommerce or custom platforms, and set up webhooks, GST invoicing and reconciliation properly. Our WooCommerce store package, starting from ₹59,999, includes payment gateway set-up as standard.
Explore our e-commerce services and web development services, compare packages on our pricing page, or talk to us about the right payment set-up for your business.
Frequently asked questions
Requirements vary by provider and business type, but most ask for the business PAN, GST certificate if registered, incorporation or partnership documents, proof of a current bank account such as a cancelled cheque, and identity proof for the authorised signatory. Sole proprietors may submit alternative business proof. Your website must also show policies, pricing and contact details before approval.
Yes. Most gateways offer payment links and simple hosted payment pages that you can share over WhatsApp, SMS or email, which suits consultants, tutors, caterers and other service businesses. KYC is still required. As your volumes grow, a proper website with an integrated checkout usually improves trust, automates order handling and reduces manual follow-up.
On standard plans, settlements typically reach your bank account within two to three working days of a successful transaction, often described as T+2. Some providers offer faster or same-day settlement for an additional fee. Bank holidays, risk reviews and the payment method can affect timing, so check the settlement schedule in your agreement and dashboard.
No. RBI rules prohibit merchants from storing customers' full card numbers. If you want returning customers to pay quickly, use the saved-card feature provided by your gateway, which relies on card network tokens rather than real card numbers. Building your own card storage would also expose you to serious PCI DSS compliance obligations and security risk.
Yes. Many stores run a primary gateway with a backup in case of downtime, or use one provider for domestic payments and another for international customers. WooCommerce supports multiple payment methods at checkout. Keep the customer experience simple by showing only the options that genuinely help, and reconcile settlements from each provider separately.
