As businesses grow, they face exciting opportunities along with new challenges, especially in areas like payment tracking and reconciliation. Managing these complexities becomes increasingly challenging as transaction volumes rise from dozens to thousands, particularly when dealing with multiple payment partners.
Razorpay Optimizer‘s Single View Reconciliation is the solution businesses need. This feature allows businesses to see all their transactions and settlement data on the Razorpay dashboard. It acts as a single source of truth for all financial transactions across payment gateways, providing complete visibility and speeding up decision-making.
The Need and Importance for Automated Reconciliation
When a business gets paid, the money doesn’t instantly show up in its bank account. Instead, it takes some time to reach the bank account based on a specific schedule, which can range from a few hours to a few days. To make sure all the expected funds have arrived in their account, businesses periodically compare their payment records with these later settlements. This process is called reconciliation.
For businesses using just one payment gateway or aggregator, reconciliation is a relatively straightforward process. They match the payment IDs with the settlements, which they can usually access directly from their payment dashboard.
However, if a business uses multiple payment partners, things get more complicated. Their finance teams must download and manually cross-check payments and settlements from various payment aggregators to ensure they align correctly. This significantly increases the complexity and effort involved in the reconciliation process.
The Challenge
Not having a single source for reconciliation causes two distinct problems:
1) Businesses can’t easily see when payments will be settled or how the money flows through their systems.
2) There’s more manual work required to reconcile everything at the end of each month.
This gets even trickier when some payments take a while to get authorized. The status of these payments can be delayed by a few minutes to several hours.
Finance teams have to recheck the payment status for some pending transactions repeatedly before their books balance. Although this happens with a small portion of payments, any discrepancies can lead to confusion and challenges when reconciling payments.
A simple, cohesive, automated single view reconciliation on Optimizer
When you route your payments through Razorpay Optimizer, all your payment and settlement details will be neatly organized in a single dashboard. This means your dashboard will be the one-stop shop for all your business data, even if you’re using different payment aggregators.
What’s even better is that this will save your finance team a significant amount of time – around 20 to 40 hours each month – by simplifying the reconciliation process.
“Razorpay Optimizer has been a good investment for our business. Their payment optimizer is incredibly efficient and has significantly improved our transaction success rates while reducing payment processing costs. With this user-friendly tool, we’ve experienced seamless payment reconciliations. It’s a must-have solution for any business looking to streamline their payments and check-out processes.”
-Nitika Sharma, Head, Customer Support, Fab India
We have built this feature as part of our vision for Optimizer to make payments management easier for businesses. With Single View Reconciliation, you get a clear, unified view of all your transactions and settlement information, whether they were processed by Razorpay or another payments aggregator. Additionally, you’ll also have access to all the relevant settlement information as soon as it’s available, including transaction status, UTR number, Settlement ID, and the specific aggregator that handled the payment.
Each Settlement ID will also be mapped to and contain information about which payments have been processed through that settlement.
In the ‘Reports’ tab, the “Settlements” report can also be configured to reflect relevant recon information such as UTR, gateway_fees, etc.
“All our problems were seamlessly managed in Optimizer. The integration experience was super-quick. And we could route transactions between multiple partners based on various parameters, giving us the much-needed flexibility and the maximum benefit from multiple payment partners.”
-Aniket Labde, Co-founder, and COO, Instant Mudra
What’s Next?
Optimizer not only provides top-notch payment routing but also offers user-friendly reconciliation features. We’re committed to enhancing this foundation by adding more payment methods and features. Our aim is to equip partner businesses with everything they need for seamless payment acceptance and management within our product. We’re here to simplify and bring transparency to your financial processes.
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