The following table lists all the commonly used terms and their definitions used in Razorpay:
API (Application Programming Interface) is a software code using which two applications can talk to each other.
Razorpay Checkout is the process where the customers select their preferred mode of payment (card, netbanking, wallet, EMI, UPI) and proceed to make payments for products or services provided by the business.
A dispute is a situation that arises when a customer or the issuing bank questions the validity of payments. It may occur due to reasons such as unauthorized charges, failure to deliver the promised merchandise or excessive charges levied by the business.
A merchant is any business person (or a freelancer) who signs up and wants to use Razorpay products.
Razorpay Partners offer the Razorpay product suite to their clients or customers. The Partners receive rewards as part of the Razorpay Partnership program. There are 3 types of Partners: Resellers, Aggregators and Platform.
An order is a request for a single service or product, or a set of services and products, made to a business. An order has 3 status values: Created, Attempted and Paid. For one order, the payment is initiated and paid once. In case of a failed payment attempt, there can be multiple attempts to make payment for an order.
A payment is a transfer of money in exchange for products or services. The businesses use Razorpay products to accept payments (from customers) and make payments (employees and vendors).
Razorpay Payment Gateway is a service that authorizes various payment modes, such as cards, netbanking, UPI, EMI, and many more, for accepting and making payments. A user making payments requires an internet connection and a device, such a desktop, laptop or mobile, to connect to the Payment Gateway. The business receiving the payment should integrate Razorpay Payment Gateway with its website or app.
A refund means returning payment to the customers. A refund may arise in various scenarios such as no or partial delivery of products or services, or when a customer is dissatisfied with the products or services (low quality, defective, misfit and so on) provided by the business.
Settlement is a process of settling in money. When a merchant is receiving money from the customers using any of the Razorpay products, such as Payment Link, settlements mean settling the customer's money to the merchant's account. While using Razorpay Route to make payouts, settlements mean settling the money from the merchant's account to the linked account owner. Settlements for all payments are done in INR (Indian Rupees), irrespective of the currency in which the payment was made.
A transaction is any activity on a merchant's Razorpay account, which includes inflow of funds (payments received), payouts (payments made to employees, contractors and vendors) and refunds.