Why does RazorPay charge transaction charges for UPI when it is free in India?
UPI transactions are typically free for direct person-to-person transfers in India.
However, what you're seeing are payment gateway processing fees, not UPI charges themselves.
Since this is a service that RazorPay provides, they charge a certain % of the transaction as fees for their service. This is a standard practice on many sites, including IRCTC - where you pay a certain minimum charge + a certain % which changes depending on whether you want to use a credit card, debit card, UPI, Netbanking or wallet for payment.
Similarly, we allow our students to pay using various payment methods. And RazorPay charges a small fee [transaction charges] for allowing us to give this service to you.
We've carefully selected RazorPay as our payment partner to ensure reliable service while keeping these fees as reasonable as possible.
However, what you're seeing are payment gateway processing fees, not UPI charges themselves.
Since this is a service that RazorPay provides, they charge a certain % of the transaction as fees for their service. This is a standard practice on many sites, including IRCTC - where you pay a certain minimum charge + a certain % which changes depending on whether you want to use a credit card, debit card, UPI, Netbanking or wallet for payment.
Similarly, we allow our students to pay using various payment methods. And RazorPay charges a small fee [transaction charges] for allowing us to give this service to you.
We've carefully selected RazorPay as our payment partner to ensure reliable service while keeping these fees as reasonable as possible.
Updated on: 06/05/2025
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