Go to Settings, then Online Payments, and select your preferred gateway. For Razorpay, you enter your Razorpay Key ID and Key Secret from your Razorpay dashboard. For PayU, you enter your Merchant Key and Salt. Once connected, Zoho Books adds a Pay Now button to all invoices sent to customers and to the customer portal. Customers can choose from UPI, credit card, debit card, net banking, or wallet depending on what the gateway supports.
When a customer pays via the gateway, Zoho Books receives a webhook confirmation and automatically records the payment against the invoice. The amount is deposited to your linked bank account (after the gateway deducts its processing fee, typically 1.5% to 2% for Indian UPI transactions and 2% to 2.5% for card payments). You need to account for this fee separately, either by reconciling the net amount received against each invoice or by posting a monthly expense entry for total gateway fees.
For recurring invoices, Zoho Books supports auto-charge through payment gateways that allow mandate-based debits (e-NACH in India via Razorpay). Once a customer authorises a mandate, Zoho Books can automatically charge their account when a recurring invoice is generated, eliminating the need for the customer to actively pay each period. This is particularly useful for SaaS companies and subscription service providers.
An online payment gateway in Zoho Books is a third-party payment processor integrated with your account that allows customers to pay invoices digitally using UPI, credit cards, debit cards, net banking, or wallets.
Zoho Books supports Razorpay, PayU, Paytm, CCAvenue, and Stripe for Indian businesses, along with global gateways like PayPal. Razorpay is most commonly used due to its UPI, QR code, and autopay mandate support.
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