The e-commerce industry in India has seen an extensive transformation over the years. We cannot go wrong in saying that the industry has pushed us into becoming a digitally empowered population.
Smartphone penetration, along with increased internet usage, has pretty much blown up online sales like never before.
An e-commerce business has to have a good payments solution to accept digital payments from its customers. But, it also has to think about other forms of money movement. RazorpayX solves all problems with business banking.
RazorpayX vs traditional business banking
The problem is, the way business banking is carried out is not the most efficient way to manage finances. Let’s take a look at how RazorpayX solves all forms of money movement.
A nodal account is a special internal bank account that is mandated by the Reserve Bank of India for businesses that are intermediaries. A nodal account helps connect customers with their sellers.
There are multi-layered interactions between several unknown parties – customers, vendors, payment gateway, etc. If payouts between these parties aren’t done on time, it leads to an erosion of trust. A nodal account safeguards the interests of customers and vendors so that payments are collected, processed and made to relevant vendors without undue delay.
An e-commerce business, especially a marketplace, needs a nodal account that operates at scale with full control and efficiency.
The problem is, opening a nodal account with a bank takes time. The bank needs to perform due diligence, and sometimes, it can take up to a few months.
And, RazorpayX has all the required features and more.
- Breeze through quarterly audits
- Link multiple bank accounts through Dynamic Routing
- Get complete visibility on the money inflow and outflow along with in-depth views from the Financial CRM
- Make instant payouts with minimal manual efforts, without relying on banking hours
- Automate your business banking via APIs for refunds, disbursals, and much more
- Avoid bank downtimes by switching to a different banking partner on the fly
- Get a better, faster, and much more reliable experience through IFTs and IMPS transactions
Refunds are one of the most important processes that can help e-commerce businesses build a credible relationship with their customers. A simple, fast, and efficient refunds process will ensure that the customers’ trust stays intact.
But, refunds are usually not straightforward, especially if the purchase was made with CoD. Here’s what happens when a customer returns their purchase, opting for a refund.
- The business sends out a form or an email that the customer needs to fill out with their bank account details
- The business hands the details over to the team responsible for making payouts to complete the refund process
- If the customer does not respond to the email or form, an agent from the company reaches out to them via call or email
There are multiple iterations for something that can be very straightforward. The business, the finance team, and customer care executives are involved for the refund to take place successfully.
This takes up many hours of manual processing, while this time can be utilised for other important tasks.
RazorpayX solves all things refunds.
With RazorpayX, e-commerce businesses can make instant refunds to credit cards, bank accounts and UPI ID. Also, businesses can automate the refund process by creating refund requests through API or the Dashboard.
RazorpayX helps make refunds via UPI, IMPS, and NEFT with an additional layer of automated failure management and retry mechanism.
RazorpayX automates refunds of CoD orders with Payout Links.
Payout Links helps automate the entire process of making a refund to a customer within minutes. On receiving the Payout Link, the customer receives the refund, without having to wait for 5 to 7 business days.
The business banking hub supports round the clock refunds through UPI, NEFT, RTGS, and IMPS, so that businesses can focus their workforce on other tasks. Businesses can also make bulk payouts through banking APIs or right from the dashboard.
E-commerce companies typically have tie-ups with vendors, partners, and contractors. So, payouts are an essential part of their daily operations.
But, payouts aren’t really straightforward because of the dependence on banking hours. Apart from that, making bulk payouts, waiting out a cooling period after adding a beneficiary, problems with reconciliation, and several other issues make payouts more difficult than they have to be.
RazorpayX automates payouts with its APIs.
API banking is a set of routines, protocols and tools that allows access to banking services to platforms like RazorpayX. Not only does this secure payments, but also saves a lot of time and manual labour.
RazorpayX supports unmatched 24/7 payouts including bulk, scheduled, and queued payouts through banking APIs for the most efficient payout experience. Automated reconciliation can be enabled through webhooks, so partners and vendors get their payouts on time.
RazorpayX delivers a lot more than a traditional bank
- Advanced payouts: RazorpayX enables bulk, queued, and scheduled payouts
- 24*7 payouts: With round the clock instant payouts, no more worries about banking hours or holidays
- Auto-retry payouts: With automated failure management and smart routing techniques for failed payouts, RazorpayX ensures successful payouts
- Instant beneficiaries: No more waiting out a cooling period before transacting. RazorpayX allows businesses to add a contact and transact with them immediately
- Error code mapping: RazorpayX helps identify and rectify payout failures with intelligent error code mapping while tracking transaction status
- Custom reports: The Dashboard provides financial summaries of all transactions and drilled down views of transactions at a contact level
The end-to-end business banking solution
RazorpayX has everything an e-commerce business needs to keep its engines running smoothly. From a nodal account to payouts, instant refunds to real-time insights, RazorpayX scales itself for businesses that scale.