Late Authorization of Payments

What is Late Authorization?#

Late authorization is a situation that arises when a payment that is near to completion is interrupted by external factors such as network issues, technical errors at customer's/bank's end, manual intervention, and many others. In such cases, funds may get debited from the customer's bank account and Razorpay does not receive a payment status from the bank.

If there is no response from the bank, the Dashboard shows this payment attempt as Created for the first 10 minutes, it is then marked as Failed due to timeout. Thereafter, Razorpay will poll the bank at various intervals for 5 days, from the day of payment creation. During this time, if our system receives the payment status from the bank as Successful, the payment is marked as authorized like any other payment and is considered as Late authorized.

The odds of a late authorized payment:
On an average, only less than 0.5% of the total number payments get late authorized. In cases where funds get debited from the customer's bank account and are not captured at your end, Razorpay automatically refunds the customer with the same amount. As a best practice, the payment.authorized webhook can be subscribed, which notifies when a payment gets authorized or failed.

Not all payments that appear as Failed will be considered as Late authorized. Late authorization is a special case of handling technical/manual interruptions that prevent Razorpay from receiving payment status from the bank and proceed with the payment flow.

What causes Late Authorization?#

Interruptions that prevent a payment gateway from receiving payment status information from the bank is a common scenario. In most cases, payments are interrupted because of any of the following reasons:

  • Network issues at the customer's end
  • Technical issues at the customer's bank's end
  • Customers closing the pop-up window or pressing the back button after submitting the OTP.

If at a later time, Razorpay is able to receive the payment status from the bank, payment is moved to Authorized state leading to late authorization of the payment. While there is only little control on these interruptions, you can prepare to handle such situations to avoid customer inconvenience. More details on handling late authorized payments is in the section Handling Late Authorization.

The difference in the payment flow for a normal payment and a late authorized payment is explained in the table below:

Normal payment

Late authorization

Customer completes the payment, bank gateway notifies Razorpay.

Customer completes the payment, bank gateway fails to notify Razorpay.

If the bank gateway response is Successful (customer's bank account is debited), Razorpay records this as an Authorized payment.

If there is no response from the bank, the payment remains in Created state for the first 10 minutes and is then marked as Failed after getting timed out. Customer's bank account may or may not have been debited.

Once authorized, you can either choose to Capture or Refund this payment.

Authorized payments are payments that are completed by the customer. To record it for settlement at merchant's end, this payment has to be Captured.

This payment can be Captured or Refunded only after it is late authorized.