API ReferenceIntegrationsKnowledge Base

Late Authorization of Payments

What is Late Authorization?#

Late authorization is a situation that arises when a payment is interrupted by external factors such as network issues or technical errors at the customer's or bank's end. In such cases, funds may or may not 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 transaction's status as Created. If there is no response even after 10 minutes, the transaction is marked as Failed due to timeout. After that, Razorpay will poll the bank at various intervals for 5 days from payment creation. During this time, if our system receives the payment status from the bank as Successful, the payment is marked as Authorized. Transactions authorized in this manner are considered as Late authorized.

How Often are Payments Late Authorized#

On an average, less than 0.5% of the total number of payments get late authorized. In cases where funds get debited from the customer's bank account and are not captured by you, Razorpay automatically refunds the customer with the same amount. As a best practice, you must subscribe to the payment.authorized webhook to be notified about the authorized or failed status of the payment.

Not all payments that appear as failed will be considered as late authorized. Late authorization is a special case of handling technical or manual interruptions that prevent Razorpay from receiving payment status from the bank and proceeding 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 status from the bank, the payment is moved to the authorized state, leading to a late authorization situation. While there is only little control over these interruptions, you can prepare to handle such cases to avoid customer inconvenience. Learn more on Handling Late Authorized Payments.

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

Normal payment

Late authorized payment

When the customer completes the payment, the bank gateway notifies Razorpay.

When the customer completes the payment, the bank gateway fails to notify Razorpay.

If the bank gateway's response is Successful (the 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 the Created state for the first 10 minutes and is later marked as Failed after getting timed out. The customer's bank account may or may not have been debited.

Once authorized, you can either choose to capture or refund this payment.

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

Note:
Authorized payments are payments that are completed by the customer. You must capture payments for them to be settled to your account.

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