Razorpay for restaurants means one account that takes UPI, cards, netbanking and wallets on your store page, through payment links in WhatsApp and at the counter through a QR, and pays all of it into your current account on a fixed settlement cycle. Setting it up is mostly paperwork: a few days of KYC, a store page or website for Razorpay to review, and some decisions about which products to turn on. This guide covers the setup steps in order, what Razorpay for restaurants costs per transaction, how and when the money settles, the products worth using from day one, and the usual reasons an application stalls.
What Razorpay gives a restaurant
Razorpay is a payment gateway: it sits between your customer's bank and yours, takes the payment, confirms it, and settles the money to you after deducting its fee. For a food business the useful parts are:
- Checkout inside your online ordering, so a customer on your store page or WhatsApp bot pays by UPI or card and the order is marked paid.
- Payment links for amounts agreed in chat: advances, catering, custom cakes.
- QR codes for the counter and riders, with each payment visible in the dashboard.
- Refunds issued from the dashboard, back to the customer's original method.
- Settlements and reports that show exactly which payments made up each bank credit.
It also runs Route, a split-payment product that ordering platforms and marketplaces use to pay their merchants; if you take orders through a platform, that is the part of Razorpay you are indirectly using, and the Route explainer describes how it works.
Setup, step by step
- Sign up on the Razorpay dashboard with a business email and phone number. You get a test mode immediately; live payments wait for KYC.
- Enter business details. Business type (proprietorship, partnership, LLP or private limited), category (food and beverage, restaurant), the business PAN and the registered address. The category matters; a mismatch between what you select and what your website shows is a common cause of delay.
- Add a current account in the business name. A savings account in your own name will usually be sent back for a proprietorship unless the name matches exactly, and it is a bad idea anyway for reconciliation.
- Upload documents. Typically the business PAN, the owner's PAN and identity proof, a cancelled cheque or bank statement, and a business registration such as a GST certificate, Udyam registration, shop establishment licence or FSSAI licence. The exact list depends on business type and is shown in the dashboard.
- Give a website or store page link. Razorpay's review team checks that the page shows what you sell, how to contact you, and your terms, privacy, refund and delivery policies. A store page from an ordering platform normally carries these; a bare Instagram profile usually does not pass.
- Wait for activation. A few working days is normal when the documents are clean. Use test mode in the meantime to see the checkout and payment link flow.
Once live, turn on the payment methods you want at checkout. UPI first, then cards, then netbanking and wallets. Leave international cards off unless you ship packaged food abroad; they attract higher fees and more disputes.
Fees: what Razorpay charges a restaurant
Razorpay's standard plan has no setup or annual fee and charges a percentage of each successful transaction, plus 18 percent GST on that fee. The published rate for domestic cards, netbanking and wallets is around 2 percent, as listed on its website at the time of writing; check the pricing page, because UPI, RuPay and international cards are priced differently and plans change.
| Fee item | How it is charged | What to check on the pricing page |
|---|---|---|
| Setup and annual fee | None on the standard plan | Whether a custom plan with lower rates has a fixed fee |
| Transaction fee | Percentage of each successful payment | The rate for UPI versus cards versus international |
| GST on fees | 18 percent of the fee | Nothing to choose; budget for it |
| Payment links and QR | Same transaction fee as checkout | Any extra charge for SMS or email delivery of links |
| Instant settlement | Extra percentage on the settled amount | The rate and whether it is per settlement or per transaction |
| Refunds | Refund amount goes back to the customer | Whether the original transaction fee is returned to you |
| Chargebacks | Flat fee per disputed card payment | The amount and the evidence window |
On a ₹500 order at 2 percent plus GST, the fee is about ₹11.80. Across 50 online orders a day that is roughly ₹590 a day, or about ₹17,700 a month, for confirmed payments with no cash handling. The gateway charges comparison puts the same numbers next to PayU, Cashfree and PhonePe.
Settlement: when the money reaches your bank
Razorpay settles captured payments to your bank account on a rolling cycle, typically T+2 working days by default, where T is the day the payment was captured. A payment taken on Friday evening is usually in your account on Tuesday, because Saturday and Sunday are not settlement days at most banks. Some merchants are moved to T+1 after a history of clean transactions; check your settlement schedule in the dashboard rather than assuming.
Each settlement comes with a report listing every payment it includes, the fee and GST deducted, and any refunds netted off. Reconcile this against your own order list once a day. If you need money faster, on-demand or instant settlement moves the balance to your bank within minutes for an extra percentage, which is worth paying occasionally for a supplier payment and expensive as a habit. The settlement cycles post works through what T+2 does to cash flow for a kitchen that buys stock daily.
Day to day: the products a restaurant actually uses
Checkout through your ordering system. This is where most of the volume runs. Your ordering platform or website connects to Razorpay with API keys from the dashboard; after that you rarely open Razorpay for ordinary orders.
Payment links. Create one for an amount, add the customer's phone number, copy it into WhatsApp. The link shows as paid in the dashboard the moment the customer completes it. Set an expiry on every link.
Refunds. Open the payment, click refund, choose full or partial. The money takes several working days to reach the customer's account depending on their bank, so tell them the timeline when you issue it.
Reports. Export payments and settlements by date range for your accountant. The GST on fees is a separate line, and you can claim it as input credit if you are a regular GST filer.
Team access. Add staff to the Razorpay dashboard with restricted roles, so a manager can issue refunds without seeing bank settings.
Why applications stall
Most delays come from five things, all fixable in a day.
- The website or store page is missing a policy page (refund, cancellation, privacy, terms or contact).
- The business category on the form does not match what the page sells.
- The bank account name does not match the business name on the PAN.
- A savings account was given for a registered business.
- A food business with no registration at all. An FSSAI registration is cheap and quick, and the review team expects to see one for a restaurant.
If the dashboard shows "needs clarification", it will say which document or page is the problem. Fix that one thing and resubmit rather than restarting.
What this looks like on Tezzu
Tezzu has Razorpay built into checkout on both the store page and the WhatsApp ordering bot, so customers pay by UPI or card and the order lands in your live dashboard marked paid, with cash on delivery available alongside. Your store page at tezzu.in/store/your-name carries the contact and policy pages that a gateway review expects, which removes the most common reason for a stalled application.
There are two ways to run it. You can take payments through Tezzu's Razorpay setup from day one, with nothing to apply for. Or you can connect your own Razorpay account, in which case settlements come straight from Razorpay to your bank on your own schedule and Tezzu charges zero platform fee on online payments; your only Tezzu cost stays the plan and the flat ₹10 per order. The steps for both are in Razorpay setup in Tezzu, and the trade-offs of using your own account are in Bring Your Own Razorpay. The full range of UPI options, from counter QR to checkout, is in the UPI payments guide.
Take your first online payment this week
Set up your menu and WhatsApp number in about thirty minutes, with Razorpay checkout ready on day one. Connect your own account later if you want zero platform fees.
Start your free 7-day trialFrequently asked questions
What documents do I need to open a Razorpay account for a restaurant?
Typically the business PAN, the owner's PAN and an identity proof, a cancelled cheque or bank statement for a current account in the business name, and one business registration such as a GST certificate, Udyam registration, shop establishment licence or FSSAI licence. You also need a website or store page showing what you sell, how to contact you and your refund and privacy policies. The dashboard lists the exact set for your business type.
How much does Razorpay charge per transaction?
The standard plan charges a percentage of each successful payment, around 2 percent for domestic cards, netbanking and wallets as listed on its website at the time of writing, plus 18 percent GST on the fee. UPI, RuPay and international cards are priced separately, and rates change, so check the pricing page before you budget. There is no setup or annual fee on the standard plan.
How long does Razorpay take to settle payments?
By default, captured payments settle to your bank account in T+2 working days, where T is the day of the payment. Weekends and bank holidays do not count, so Friday's payments usually arrive on Tuesday. Some accounts move to T+1 over time. Instant or on-demand settlement is available for an extra fee when you need the money the same day.
Can I use Razorpay without a website?
You need some page that shows your business, contact details and policies for the activation review; a store page from an ordering platform usually satisfies this. Once activated, you can take payments with no website at all through payment links, QR codes and payment pages, which many home bakers and caterers do entirely over WhatsApp.