Accepting Online Payments in India: UPI, Cards & COD for New Stores
How Razorpay, Cashfree and similar gateways work for SMB stores — fees, settlement and what to set up first.
- My E Com Team
- 6 min read
Which payment methods Indian customers expect
UPI is now the default for small-ticket purchases, followed by cards and netbanking; Cash on Delivery (COD) still matters for first-time buyers in Tier 2/3 cities. New stores should offer at least UPI + cards, with COD as an option if logistics allow.
Payment gateways popular with SMBs include Razorpay, Cashfree, PayU and CCAvenue. They typically charge around 2% + GST per online transaction with T+2 day settlements — confirm current pricing on the gateway's site before budgeting.
What setup actually involves
You will need a current account, PAN, GST (for most gateways) and KYC documents. Activation usually takes 1–5 working days. Your developer then integrates the gateway in test mode, places trial orders and switches to live.
Our ecommerce builds include one standard gateway integration with test orders completed before launch, plus guidance on refunds and settlement reports.
Reducing failed payments and COD losses
Keep checkout to minimal steps, show UPI first on mobile, send order confirmations on WhatsApp/SMS and confirm COD orders by phone before dispatching. Clear shipping timelines and an easy return policy also cut payment disputes.
Start simple, track which methods customers actually use for 60 days, then optimise — data beats assumptions in payments.
