Zoho Razorpay Integration: Automate Payments and Reconciliation

The Zoho Razorpay integration connects your payment collection with invoicing and CRM. For Indian businesses using Razorpay to accept online payments, this integration auto-reconciles payments in Zoho Books, updates deal stages in Zoho CRM, and eliminates the manual work of matching bank statements to invoices.

Why Integrate Zoho with Razorpay

Indian businesses using Zoho Books for invoicing and Razorpay for payment collection face a daily reconciliation task: match each Razorpay settlement to the corresponding invoice, account for Razorpay fees and GST on fees, and handle partial payments, refunds, and failed transactions. Without integration, this is a manual, error-prone process that consumes 1 to 2 hours daily for a business processing 50+ transactions.

Integration Options

There are three ways to connect Zoho with Razorpay:

Setting Up Zoho Books Payment Links with Razorpay

The simplest integration: connect Razorpay as a payment gateway in Zoho Books. Every invoice you send includes a “Pay Now” button. The customer clicks it, pays via Razorpay (UPI, card, netbanking), and Zoho Books auto-records the payment against that invoice. No manual reconciliation needed.

Configuration steps:

1. Go to Zoho Books > Settings > Online Payments > Razorpay
2. Enter your Razorpay Key ID and Key Secret (from Razorpay Dashboard > Settings > API Keys)
3. Enable payment methods: UPI, credit/debit card, netbanking, wallets
4. Set auto-charge for recurring invoices (if applicable)
5. Send an invoice; the customer sees the Pay Now button with Razorpay checkout

Webhook-Based Integration for Custom Workflows

For businesses that collect payments outside of Zoho Books invoices (subscription payments, e-commerce checkout, custom payment pages), use Razorpay webhooks to push payment events to Zoho.

When a payment is captured in Razorpay, the webhook sends event data (payment ID, amount, email, contact, notes) to a Zoho Creator form or Zoho Flow trigger. The receiving system then:

• Matches the payment to a CRM deal or contact using email or phone
• Creates a payment receipt in Zoho Books against the correct invoice
• Updates the CRM deal stage to “Paid” or “Payment Received”
• Sends a payment confirmation email via Zoho Campaigns or CRM

Handling GST on Razorpay Fees

Razorpay charges a transaction fee (typically 2% for cards, Rs. 3-10 for UPI) plus 18% GST on the fee. For accounting purposes in Zoho Books:

• Record the gross payment amount as received from customer
• Create a vendor bill from Razorpay for: transaction fee + GST on fee
• The net bank deposit = gross payment minus Razorpay fee minus GST
• Claim GST input credit on Razorpay fees (legitimate business expense)

Zoho Books can automate this: when a Razorpay settlement lands in your bank account, create a split entry: payment received (credit to customer), payment gateway fee (debit to expenses), GST on fee (debit to input GST).

Auto-Reconciliation Setup

For daily reconciliation: download the Razorpay settlement report (available via API or dashboard). Import into Zoho Books bank reconciliation. Match each settlement to the corresponding invoice payments. With the webhook integration, most matching happens automatically. Only exceptions (partial payments, refunds, disputes) need manual attention.