When your customer makes an online purchase using EMI methods on your website or app, the transaction amount is converted into Equated Monthly Instalments (EMIs). Following is the EMI payment flow from the customer to the merchant:
- Customer purchases for Total_Amt via EMI on your website or app.
- Bank pays Razorpay (Razorpay_Amt = Total_Amt - Bank Commission).
- Razorpay pays you (Merchant_Amt = Razorpay_Amt - Razorpay Commission).
Handy Tips
The EMI includes a portion of the principal outstanding and interest component, which your customer needs to pay every month until the full amount is paid.