As businesses scale, their growth creates new challenges and complexities. For example, tracking and reconciling payments becomes harder as the number of transactions grows from dozens to thousands – especially when multiple payment partners are used. 

Now, with Single View Recon, businesses using Optimizer can view all their transactions and settlement data on the Razorpay dashboard – making it a single source of truth and enabling easier and smarter payment visibility!

Need and Importance of Reconciliation

When a business receives a payment, it does not immediately turn up in its bank account. The funds are usually ‘settled’ to its bank account on a settlement timeline, which can vary from a few hours to a few days. Businesses periodically compare their payment records with later settlements in a reconciliation process to ensure that all the pending funds have been deposited in their accounts. 

For businesses using one payment gateway/aggregator, reconciliation involves matching the payment IDs with the settlements, usually taken from their dashboard directly.

However, for businesses using multiple payment partners, finance teams have to download and manually reconcile payments and settlements from various payment aggregators to make sure the payments and settlement are in sync. This raises the level of complexity and effort involved substantially.

The Challenge

Not having a single source of truth for reconciliation causes two distinct problems: 

  1. Lack of visibility on the settlement cycle and payments flow for the business;
  2. An increase in manual effort to complete reconciliation at month-end

This is further complicated by late authorizations. For some payments, the actual status of the payment is generated later, and the delay in the status of the payment update can extend from a few minutes to several hours. 

Finance teams have to recheck the payment status for some pending transactions repeatedly before their books balance. While this happens with a small proportion of payments, any gap can create substantial confusion and friction in reconciling payments.

Single View Recon – Automation as a solution

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All payments and settlement information for your business will now be available in one dashboard when you route the payments via Optimizer. This will make your dashboard a single source of truth for your business across multiple aggregators. This will save your finance teams 20-40 work hours a month in doing reconciliations. 

We have built this feature as part of our vision for Optimizer to make payments management easier for business owners and their teams, and Single View Recon will offer this functionality and single-point visibility for all your payments. 

Businesses using Optimizer will now be able to see transactions and settlement information right off their Razorpay dashboard, regardless of whether the payment was processed by Razorpay or by an external payments aggregator. 

Additionally, they will be able to view all the relevant settlement information, when it becomes available – such as transaction status, UTR number, Settlement ID, and the aggregator that processed that payment.

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Each Settlement ID will also be mapped to and contain information about which payments have been processed through that settlement.

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In the ‘Reports’ tab, the “Settlements” report can also be configured to reflect relevant recon information such as UTR, gateway_fees, etc. 

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What’s Next?

In addition to having the best-in-class routing solution, the Optimizer product now also boasts the most business-friendly reconciliation capabilities. We will be building on this existing foundation by adding more payment methods and features with the vision of ensuring that our partner businesses will never have to look beyond our product to accept and manage their payments.

 

Have more questions about Optimizer or Single-View Recon? Feel free to reach out to us at payments-optimizer@razorpay.com or check out Optimizer here.

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