Your backend creates an order with the gateway, the frontend opens checkout with the order ID, the customer pays, the gateway processes the payment, sends a webhook to your backend, your backend verifies the signature, updates the order in the database, and the customer sees a success page.
Razorpay is a payment gateway popular in India for accepting online payments via cards, UPI, net banking, wallets, and EMI. It provides a clean Node.js SDK, supports webhooks for payment notifications, has a test mode for development, and offers a dashboard for managing payments and settlements.
Use Razorpay for the Indian market (UPI support, INR transactions, Indian payment methods, local settlement). Use Stripe for global reach (46+ countries, multi-currency, better documentation). Both have clean APIs and SDKs.
Razorpay sends a cryptographic signature (HMAC) with each payment. Your backend verifies this signature using your secret key to ensure the payment notification is genuine and hasn't been tampered with. This prevents fraudulent payment confirmations.
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