# How to Accept UPI Payments on Your Online Store

Source: https://lotsstore.app/blog/how-to-accept-upi-payments-on-your-online-store
Published: 2026-10-25T00:30:26.105455+00:00

You can accept UPI on your online store in two ways. Either shoppers pay the exact amount to your own UPI ID and you confirm it in your bank or UPI app, or they pay through Razorpay's checkout, which confirms the payment for you. With LotsStore both are on the Payments page, the money goes straight to you, and we take 0% of your sales.

UPI is the instant bank-to-bank payment system run by NPCI. A shopper pays from any UPI app, in rupees, so this is for stores that sell in rupees. Below is how each route works step by step, what it costs, and which one suits you. UPI and Razorpay facts are from their own pages, checked on 24 October 2026.

## The two routes at a glance

| | UPI to your own UPI ID | UPI through Razorpay |
|---|---|---|
| Who confirms the payment | You, in your bank or UPI app | Razorpay, automatically |
| Where the shopper pays | A page on your store with your UPI ID, a QR code and an "Open your UPI app" button | Razorpay's own checkout |
| Money goes to | Your own bank account | Your Razorpay account, then your bank |
| Fee from a payment provider | None | Razorpay's UPI charge depends on your plan and account, so check its [pricing page](https://razorpay.com/pricing/) for your account |
| Sign-up needed | Your UPI ID and the name on it | A Razorpay account, with KYC before live payments |
| Other ways to pay | UPI only | Cards, netbanking, wallets and UPI |
| LotsStore's cut | 0% | 0% |

## Route 1: shoppers pay your own UPI ID

This is the simplest way to start. There is no payment provider between your shopper and your bank account.

### What the shopper sees

1. They place an order on your store and choose **Pay by UPI QR**.
2. The order page shows the exact total, your UPI ID, the order number, a QR code and an **Open your UPI app** button. The amount and the order number are already filled in for the UPI app, so nobody types the total.
3. They pay from their own UPI app.
4. They enter the UPI transaction reference from their app and tap **I have paid**.

### What you do

1. Open the order in **Orders**. The shopper's reference is shown on it.
2. Open your own bank or UPI app and match that reference and the amount against your transaction history.
3. If it's there, click **Confirm payment received**, then **Accept order**. If it isn't, click **Payment not found**.

That's the whole loop. LotsStore doesn't read your bank, so nothing is confirmed until you confirm it, and the order doesn't go ahead before then. If a shopper reuses a reference that is already confirmed on another order, LotsStore stops it.

### Set it up in five minutes

1. In your dashboard, open your store, then **Payments**.
2. Tick **Enable checkout**, then tick **Enabled** on the **Manual UPI QR** card.
3. Enter your **UPI ID** (for example business@bank) and the **Payee name** shoppers should see.
4. Set the **Payment window**, from 5 minutes up to 24 hours (30 minutes is the default). An order that isn't paid and accepted inside the window expires and its stock goes back on the shelf, so set it to match how often you check your bank app.
5. Choose **Seller acceptance**: **Review every order**, or **Automatically accept verified payments**. Automatic only saves you the last click: you still confirm the payment yourself, and the order is accepted as soon as you do.
6. Add **Customer instructions** if you want to tell shoppers something, then save.

UPI payments are in rupees, so your store needs to sell in Indian rupees. Your store's country sets its currency when you create it.

### Refunds

If you reject an order that was already paid, LotsStore queues the refund. Because the money is in your account and not with us, you send it back yourself from your bank or UPI app.

## Route 2: UPI through Razorpay

If you connect Razorpay, shoppers pay by UPI, card, netbanking or wallet on Razorpay's checkout, and Razorpay tells LotsStore the order was paid. You don't match anything by hand. Razorpay is for businesses registered in India, and the money settles to your own Razorpay account and bank.

The steps (test mode, sign in, approve, test order, go live after KYC) are in [How to Connect Razorpay to Your Online Store](https://lotsstore.app/blog/how-to-connect-razorpay-to-your-online-store). There's no API key to copy: you sign in on Razorpay's own site and approve LotsStore. Razorpay's account activation (KYC) comes before live payments, so allow time for it.

Razorpay's UPI charge depends on your plan and account, so check its [pricing page](https://razorpay.com/pricing/) for your account. Its Learn article says UPI from a bank account carries "a government-mandated 0% MDR." LotsStore adds nothing on top: you pay per store, and your payment provider charges its own fee, separately.

## UPI direct or Razorpay: which one?

**UPI to your own UPI ID suits you if:**
- you take a handful of orders a day and can check your bank app between them;
- you sell through Instagram or WhatsApp and your customers already pay you by UPI;
- you want to start today, without a provider account or KYC step;
- you'd rather pay no provider fee at all.

What to plan for: every payment is checked by you, so a late night order waits until you look, and an order that isn't confirmed inside the payment window expires. Refunds are sent by you. Shoppers can only pay by UPI.

**UPI through Razorpay suits you if:**
- you get more orders than you can check by hand, or you're asleep when they arrive;
- shoppers want to pay by card, netbanking or wallet as well as UPI;
- you want refunds from the order page instead of from your bank app.

What to plan for: Razorpay's own charge (it depends on your plan and account, so check its [pricing page](https://razorpay.com/pricing/)) and KYC before you go live.

You don't have to pick one. The Payments page lets you turn on both, and shoppers choose at checkout. A simple order is UPI direct first, then Razorpay added when the volume asks for it.

## UPI limits and charges, checked on 24 October 2026

- **Per-payment limit.** Razorpay's UPI limits article (8 June 2026) lists Rs.1,00,000 as the standard limit for UPI payments to merchants, up to Rs.5 lakh for certain registered merchant categories, and says most banks allow up to 20 UPI transactions a day. Individual banks set their own caps, some lower, so a large order may need to be split or paid another way.
- **Fee from the UPI network.** Razorpay's Learn article (10 February 2026) says bank-to-bank UPI transactions carry a government-mandated 0% merchant discount rate (MDR). NPCI announced on 13 October 2026 that an MDR on select person-to-merchant UPI transactions will start immediately after Diwali, on a date to be notified separately. Watch NPCI's notice for which payments it covers.

## Why the UPI route is safe for your shoppers

Your shopper pays inside their own UPI app, so LotsStore never sees a UPI PIN, and it never holds your money or theirs. On Razorpay's checkout the same is true. For how the rest of the setup is protected, read [Is LotsStore safe?](https://lotsstore.app/blog/is-lotscommerce-safe)

## Selling from Instagram and WhatsApp

If your orders start in chat, put your store link where the DMs are and let UPI close the sale on the order page. [How to Sell on Instagram and WhatsApp Without Losing Orders in DMs](https://lotsstore.app/blog/how-to-sell-on-instagram-and-whatsapp-without-losing-orders) shows the full setup, including WhatsApp orders as another way to settle directly.

## What it costs on LotsStore

LotsStore is priced per store, never per sale. Starter is $12 a month for 1 store ($120 a year), and every feature is on every plan, including UPI, Razorpay and WhatsApp orders. Products, orders, customers and teammates are unlimited. New accounts get 15,000 free credits, valid 90 days, no card. See the [pricing page](https://lotsstore.app/pricing).

You can also do the setup from ChatGPT or Claude. LotsStore works with the AI agent you already use: connect it on the [setup page](https://lotsstore.app/mcp) and ask it to add your UPI ID and payee name to the store's payment settings. When an order arrives, the agent can show you the shopper's reference, and it confirms the payment only after you tell it you saw the money in your own bank or UPI app.

## FAQ

### How does UPI payment work on an online store?

The shopper pays the exact amount to your UPI ID from their own UPI app, then enters the transaction reference on your store. You check that payment in your bank or UPI app, confirm it, and accept the order. The money goes straight to your bank account.

### Do I need a payment gateway to accept UPI?

No. With LotsStore you can take UPI to your own UPI ID with no provider at all. A gateway such as Razorpay adds automatic confirmation and more payment methods, for a platform fee.

### How do I know a UPI payment has really arrived?

You check it in your own bank or UPI app. Match the shopper's transaction reference and the amount, then click Confirm payment received on the order. If you can't find it, click Payment not found and the order doesn't go ahead.

### Does LotsStore charge a fee on UPI payments?

No. LotsStore takes 0% of your sales. With UPI to your own UPI ID there is no payment provider fee. With Razorpay, Razorpay charges its own fee, separately.

### Can I accept UPI and cards on the same store?

Yes. Connect Razorpay for cards, UPI, netbanking and wallets, and keep UPI to your own UPI ID turned on too. Shoppers choose a method at checkout.

### What happens if the shopper doesn't pay in time?

Each UPI order has a payment window you set, from 5 minutes to 24 hours. An order that isn't paid and accepted before it ends expires, and its stock is released.

## Sources

Checked on 24 October 2026: [LotsStore API docs](https://api.lotsstore.app/docs.md), [LotsStore skill](https://lotsstore.app/skill.md), [LotsStore pricing](https://lotsstore.app/pricing), [Razorpay pricing](https://razorpay.com/pricing/), [Razorpay: UPI transaction charges](https://razorpay.com/learn/upi-transaction-charges/), [Razorpay: UPI transaction limit per day](https://razorpay.com/blog/upi-transaction-limit-per-day/), [NPCI press release, 13 October 2026](https://www.npci.org.in/uploads/UPI_MDR_on_Select_Merchant_Transactions_Shall_be_Implemented_Post_Diwali_4c9cdd77d5.pdf).