Razorpay Running a KYC Scam? Users Complain About Non-Refundable Fees and Withheld Funds

Introduction

Razorpay, one of India’s leading payment gateway providers, is facing severe criticism from users who claim they are being scammed. The primary issue revolves around its Know Your Customer (KYC) verification process, which allegedly rejects a vast majority of applicants while keeping the Rs. 199 verification fee non-refundable.

Many users report that despite fulfilling all the required criteria, their KYC applications are rejected with vague reasons such as “Privacy Policy Does Not Support Your Business.” Additionally, several users have alleged that Razorpay is holding their funds without valid reasons, causing severe financial and mental distress.

How the Alleged Scam Works

1. Razorpay Advertises Easy Onboarding Razorpay attracts businesses by promising seamless and hassle-free onboarding, making it look like a quick and easy process to get started with their payment services.
2. Users Pay Rs. 199 for KYC Verification To activate the account, users are required to pay Rs. 199 as a KYC verification fee.
3. KYC Gets Rejected for Unclear Reasons A significant number of users report that their KYC applications are rejected despite submitting valid business details and documents.
4. No Refund Policy Once rejected, Razorpay refuses to refund the Rs. 199 fee, stating that it is a non-refundable charge. This leads to financial losses for applicants who receive nothing in return.
5. Holding Users’ Money Without Explanation Some users claim that even after successfully onboarding, Razorpay has frozen their funds without proper justification. Complaints have surfaced where users have waited beyond the promised refund period without receiving their money.

User Complaints and Growing Frustration

Social media and online forums are flooded with complaints from business owners and freelancers who feel cheated by Razorpay’s practices. Many claim that their businesses are legitimate and adhere to all regulations, yet they still face rejection with no explanation.

Some common complaints include:

• Lack of transparency in KYC rejection reasons.
• No clear guidelines on which businesses are eligible.
• Zero customer support response regarding refund requests.
• Withholding of funds for unjustified reasons.

One user even commented: “Razorpay has not refunded my money yet. The given time frame is also over. I am mentally depressed. Now I will have to do something like suicide. This is my last warning.”

Razorpay ने अभी तक मेरे पैसे वापस नहीं किए हैं। दिया गया समय सीमा भी समाप्त हो गई है। मैं मानसिक रूप से बहुत परेशान हूँ। अब मुझे आत्महत्या जैसी कोई चीज़ करनी पड़ेगी। यह मेरी आखिरी चेतावनी है।

This alarming statement highlights the severe mental distress caused by Razorpay’s actions. If true, such practices could have serious consequences for affected individuals.

Government Needs to Take Action

Given the high rejection rate, non-refundable policy, and allegations of withholding funds, many believe Razorpay is exploiting the system to generate revenue without actually providing the promised services. This raises ethical concerns and questions about regulatory oversight. The Indian government and financial regulators like the RBI and NPCI need to step in and take strict action against such practices to protect users and businesses from financial losses and mental distress.

What Can Affected Users Do?

If you have been a victim of Razorpay’s KYC rejection, non-refundable fees, or fund withholding, here are some steps you can take:

• Raise a Complaint on Consumer Forums: Websites like Consumer Complaints India and Twitter can help amplify your issue.
• Report to the RBI and NPCI: Since Razorpay operates in the fintech space, regulatory authorities should be informed about such practices.
• Use Alternative Payment Gateways: Consider switching to other payment processors like Instamojo, PayU, or Cashfree that offer more transparent onboarding processes.
• Seek Legal Assistance: If your funds are being unfairly held, consider taking legal action.

It sounds like you’re frustrated about a possible scam or an issue with Razorpay. If you’re facing problems with a refund, I recommend:

1. Contacting Razorpay Support – Reach out to their official customer support through their website or email.
2. Checking with Your Bank – If the transaction was through a bank, they might help with a chargeback.
3. Filing a Complaint – If you’re in India, you can file a complaint on the National Consumer Helpline (https://consumerhelpline.gov.in/) or approach the Cyber Crime Portal (https://cybercrime.gov.in/).

If this is urgent and affecting you mentally, please talk to a friend, family member, or seek professional help. You’re not alone, and there are always ways to resolve the situation. Let me know if you need more guidance. 🙏

Conclusion

Razorpay’s KYC process and fund-handling policies appear to be deeply flawed, with many users experiencing unjustified rejections and withheld money. If these practices continue, it could severely damage the company’s reputation and erode trust in online payment solutions in India. Authorities need to step in and ensure fair practices in the digital payment industry.

Have you faced issues with Razorpay’s KYC process or fund withdrawals? Share your experience in the comments below!