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Razorpay vs Karbon: which is better for international payments in 2026?

  • Razorpay is easy for existing domestic users, with 1% flat pricing and zero FX markup, but the fee grows large as your invoices get bigger
  • Karbon Business charges a flat 1% fee with fast 24-48 hour settlement, but currently offers a live virtual account only in USD
  • Which one is better comes down to your priorities - fees, FIRA handling, and how your clients prefer to pay
Accept payment from 150+ countries
USD
Client pays
USD 100USD 100,000
1 USD = 85.00 INR
Live fx rate
You'll receiveINR
₹4,22,091
Razorpay
₹4,19,985
You lose:1.2%
Karbon
₹4,19,985
You lose:1.2%
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Razorpay vs Karbon: understanding the key differences

Both Razorpay and Karbon are well-known names for international payments, but they differ in who can use them from India, fees, export documentation like FIRA, GST compliance, settlement timelines, and support. Here is how they compare side by side.
FeaturesrazorpayKarbon
Transfer fees1% on bank transfers (cards 3%, wallets 3.5%)~1% flat fee
Forex markupZero, live exchange rate0-1%, live rate
FIRAAutomatic FIRA per transactionAutomatic, bundled into the fee
eBRCNot supported, closed on DGFT after your bank issues the IRMNot confirmed
GST-compliant invoiceBuilt-in invoicing tool that is GST compliantNot confirmed
Settlement time1 business day24-48 hours
Customer supportIndia-based supportIndia-based; WhatsApp, phone, email
Best suited forLower-value invoices where 1% takes a smaller cutFlat-fee USD receiving, fast settlement

Razorpay vs Karbon: pricing and forex breakdown

Beyond the published fees, the real cost is what lands in your bank after fees, forex and GST. Move the slider to see what each one works out to, and how Skydo compares.
With Skydo, you receive₹8,47,091
Money transferUSD 10,000
$500$10K$100K$1M
razorpay0% markup
₹8,39,970
Exchange rate85.00
Forex markup₹0
Transfer fee₹8,500
Fixed fee₹0
GST (18%)₹1,530
Total fees₹10,030
You receive₹8,39,970
Karbon0-1% markup
₹8,39,970
Exchange rate85.00
Forex markup₹0
Transfer fee₹8,500
Fixed fee₹0
GST (18%)₹1,530
Total fees₹10,030
You receive₹8,39,970

Razorpay vs Karbon: compliance, payment rails, and platform comparison

razorpay
  • Generates a digital FIRA automatically for every transaction on the dashboard
  • No automated eBRC, you close it on the DGFT portal once your bank issues the IRM
  • Has a built-in invoicing tool that produces GST-compliant invoices
  • Leaves the purpose code to your AD bank at settlement, outside the payment flow
  • SOFTEX and EDPMS are handled separately, not by Razorpay
Karbon
  • FIRA auto-generated for every transaction at no extra cost
  • eBRC automation not explicitly confirmed
  • GST-compliant records referenced but not detailed
  • Guided purpose-code handling at onboarding
  • SOFTEX and EDPMS handling not detailed publicly

Razorpay vs Karbon: which one is right for you

There is no single winner. The right pick depends on who pays you, how large your invoices are, and how much paperwork you can handle.
01razorpay

Choose Razorpay if:

You want bank transfer rails and 1% pricing with zero markup, and value an India-first stack.
  • You are an exporter or freelancer who wants to be paid by local bank transfer, like ACH, SEPA, or SWIFT, rather than card
  • You want 1% with zero forex markup instead of a percentage-plus-markup structure
  • You want automatic per transaction FIRA generated on the dashboard
  • You already run on Razorpay's India stack and want gateway, payouts, and collections in one dashboard
02Karbon

Choose Karbon if:

You want Karbon's flat 1% fee and fast settlement, and can work within its USD-first account today.
  • USD-led exporter wanting flat, predictable pricing
  • Business comfortable with a partner-bank model
  • New exporter wanting fast onboarding
  • Team that values automatic FIRA bundled into the fee

Skydo: a better alternative to Razorpay and Karbon

FeaturesrazorpayKarbon
Settlement time1 business day24-48 hours24 hours
Forex markupZero, live rate0-1%Zero, live rate
Transaction fee1% on transfers~1% flat$19 up to $2k, $29 up to $10k, 0.3% aboveBest
FIRAAutomatic, per transactionAutomatic, bundledFree, instant, per payment
eBRC and EDPMSNot supported, handled with your AD bankNot confirmedOne-click eBRC, EDPMS closure assistance
GST invoicingBuilt in, GST compliantNot confirmedBuilt in, GST compliant
Customer supportIndia-based supportWhatsApp, phone, emailIndia-based, on WhatsApp, call and email
Payment trackingDashboard, payment statusDashboard timelinesAuto tracked, remittance to bank deposit
RBI authorisationFull PA-CB (Dec 2025)Partner-bank modelFull PA-CB authorized
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See what our clients say about us

100+ reviews
Trusted by 40,000+ businesses
Shashank
“I'm looking for straightforward, transparent pricing. With most payment providers, it's hard to understand the actual fees and exchange rates, making it difficult to know what I'm really paying.”ShashankCEO, HCODE

Frequently asked questions

Which is better, Razorpay or Karbon, for international payments in 2026?+
It comes down to how your clients pay you and how much compliance you want handled. Razorpay handles international bank transfers at 1% with zero FX markup and automatic FIRA, though the percentage fee grows with invoice size. Karbon Business charges a flat 1% fee with 24-48 hour settlement, but its live virtual account is USD-only today. Razorpay suits lower-value invoices and existing Razorpay users, while Karbon suits flat-fee USD receiving.
Is Razorpay cheaper than Karbon?+
Usually yes. Razorpay charges 1% plus GST on international bank transfers with zero forex markup, roughly 1.2% all in. Karbon charges a flat ~1% fee plus GST with a 0 to 1% forex spread, roughly 1 to 1.2% all in. Razorpay is generally cheaper, though what actually lands in your bank depends on invoice size.
Which provides better exchange rates, Razorpay or Karbon?+
Neither builds a meaningful markup into the rate. Razorpay converts at the live exchange rate with zero markup, and Karbon quotes a live forex rate with a 0 to 1% spread. The cost difference between them comes from fees rather than the exchange rate.
Do Razorpay and Karbon provide FIRA for Indian exporters?+
Razorpay generates a digital FIRA automatically for every transaction. Karbon generates FIRA automatically for every transaction at no extra cost. For GST refunds and export compliance an instant per-payment FIRA matters — Skydo issues one free with every payment.
Are Razorpay and Karbon RBI-approved for receiving payments in India?+
Razorpay holds full PA-CB authorisation (Dec 2025) alongside its PA licence. Karbon operates on a partner-bank model, with no independent RBI PA-CB licence publicly confirmed.
Is Razorpay or Karbon better for freelancers or businesses?+
Exporters who want bank-transfer rails at a low percentage fee, or who already run on Razorpay's India stack, lean towards Razorpay. USD-led exporters who want a flat 1% fee and fast settlement lean towards Karbon.
Is there a better alternative to Razorpay and Karbon for receiving money in India?+
Skydo is built for Indian exporters and freelancers. It charges a flat fee ($19 up to $2k, $29 up to $10k, 0.3% above) that works out cheaper than a percentage fee as invoices grow, with zero forex markup, instant FIRA on every payment, one-click eBRC and EDPMS closure assistance, built-in GST-compliant invoicing, full RBI PA-CB authorisation, and India-based support.

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