Some prerequisites for payments from customers to be settled to your bank account:
Settlements is the process through which you receive the payments made by your customers for a particular product or service. Once Razorpay receives the amount, it is settled to your bank account after fees deduction.
By default, the complete process takes a time of T+2 business days for domestic transactions and T+7 days for international transactions, T being the date of capture of payment. This is called the settlement cycle. The settlement cycle is subject to bank approval and can vary based on your business vertical, risk factors and so on. Settlements are made to the bank account, the details of which you submitted to us as a part of KYC verification.
There is no need for manual intervention in Settlements.
You can view your settlement cycle on the Dashboard.
The short animation below shows you how you can view your settlement cycle on your Dashboard.
You can view details of settlements made to you from the Dashboard.
- Log into your Razorpay Dashboard.
- Navigate to Settlements and click on a Settlement ID that you wish to refer to.
You can view information such as the Amount transferred to your account and applicable Fees and Tax if any.
The short animation below shows you how you can view details of a settlement on your Dashboard.
The screen print below shows the breakup of a settlement.
In this example
The amount settled to your account = Payment - Adjustment - Tax - Fee - Transfer + Reversal The amount settled to your account = 18012.00 - 6.00- 65.56 - 364.24 - 40.00 + 11 The amount settled to your account = 17547.20
Details of a Settlement are broken down into the following components:
- The total payment amount that is being settled before deductions.
- Adjustments to transactions, if any.
- Tax deducted on the payment.
- Fees deducted by Razorpay for the transactions.
- Transfers made if any. Transfers are payouts made to your linked accounts. Note, linked accounts are accounts created for third-party sellers by you after onboarding them onto the Razorpay platform.
- Reversals made if any. Reversals are refunds you have issued to your customer.
Your settlement can be placed on hold if we detect some risk with your payments or with your Razorpay account. You are notified about this on your Dashboard as shown:
To enable settlements when they are put on hold:
The Settlement Recon report helps you with the reconciliations of Settlements. The report contains transactions and the corresponding Settlement IDs. You can download this in a daily or a monthly format from the Reports section of the Dashboard.
A settlement can have the following states:
- The settlement is being processed by our nodal banking partners and will be credited to your account.
- The settlement has been successfully credited to your bank account.
- The settlement to your account has failed. You will receive a mail from Razorpay in such an event. Address the email with the requested details to enable settlements for your account. If you do not receive an email from us, you can raise a request from our Support Portal.
Some reasons for failure are:
- Your bank account is inactive or frozen.
- Incorrect bank account details.
- The Settlement was rejected by your bank.