API ReferenceIntegrationsKnowledge Base

Settlements

Settlement is the process in which the money received from your customers is settled to your bank account. Settlements for all payments will be done in INR (Indian Rupees), irrespective of the currency in which the payment was made.

Settlement Cycle🔗

Captured payments are automatically settled to the bank account submitted to us as part of KYC verification according to your settlement cycle.

Note:
We do not process settlements on bank holidays and the second and fourth Saturdays of the month, as banks remain closed on these days.

Domestic Settlements🔗

The standard settlement cycle for domestic payments is T+2 working days (where T is the date of transaction capture).

Example

You captured 20 payments on February 02, 2019 at 9:00 a.m. and your settlement schedule is T+2 days.

The payments you captured on February 02, 2019 is going to be settled to your bank account on February 04, 2019 at 9:00 a.m.

If the settlement day is a bank holiday, the settlement will be made on the next working day after the bank holiday.

International Settlements🔗

The standard settlement cycle for international payments is T+7 working days (where T is the date of transaction capture).

Settlements for all payments will be done in INR (Indian Rupees), irrespective of the currency in which the payment was made. The payment is converted using the exchange rate at the time of payment creation.

Razorpay allows you to accept payments in any of the supported international currencies.

Example

You captured 7 international payments on February 02, 2019 and your settlement schedule is T+7 days 9:00 a.m.

The payments you captured on February 02, 2019 is going to be settled to your account on February 09, 2019 at 9:00 a.m.

If the settlement day is a bank holiday, the settlement will be made on the next working day after the bank holiday.

Settlement Life Cycle🔗

A settlement can have the following states:

Created
The settlement is being processed by our nodal banking partners and will be credited to your account.
Processed
The settlement has been successfully credited to your bank account.
Failed
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.

Settlement Breakup🔗

The screen print below shows the breakup of a settlement.

In this example

CopyThe 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:

Payment
The total payment amount that is being settled before deductions.
Adjustment
Adjustments to transactions, if any.
Tax
Tax deducted on the payment.
Fee
Fees deducted by Razorpay for the transactions.
Transfer
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.
Reversal
Reversals made if any. Reversals are refunds you have issued to your customer.

Enable Settlements Placed On Hold🔗

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:

  1. Log into the Dashboard.
  2. Navigate to Settlements.
  3. Click View Details and select Contact Support to get in touch with the Razorpay Support team.

Notifications🔗

For better visibility and tracking of Settlements, Razorpay will send email and SMS notifications daily. You will receive notifications for:

  • Successful settlements: Once the settlement is successful, you will receive a notification which provides details related to the settlement amount, UTR, breakdown, and so on.
  • Failed settlements: Settlements can fail for various reasons. The notification will provide details as to why the settlement has failed. Also, it will contain information on further actions you can take.

To manage your email and SMS notifications for settlements, click here.

Actions🔗

API🔗

Use the below endpoint to fetch details of all settlements made to you.

/settlements

Refer to the Settlements section in the API documentation for more details.

Dashboard🔗

You can view a detailed breakdown of the amount settled to you from the Dashboard. You can view details, such as the total settlement amount (credit + debit amount), applicable service fees, service tax, adjustments, and so on.

  1. Log into the Dashboard.
  2. Navigate to Settlements.
  3. Click on a Settlement ID that you wish to refer to.

Watch this video for more information.

Refer to the Settlements section in the Dashboard Guide for more information.

FAQs🔗

Below are some frequently asked questions (FAQs) about settlements.

  1. What are settlements?

    Settlement is the payout you receive for the money paid by your customers for a particular product/service. There are several entities involved in the settlement process. The complete process takes a time of T+2 business days; T being the date of capture of payment.

    Settlement cycle is subject to bank approval and can vary based on your business vertical, risk factor, etc. Each settlement generated has a unique settlement ID attached to it along with the amount settled.

  2. What is the settlement cycle you offer?

    Our standard settlement cycle is T+2 working days, with T being the date of transaction capture. This implies that payments would be settled to the bank account registered with us after 2 working days.

    Note: Working days do not include second and fourth Saturdays, Sundays and Bank Holidays.

  3. Where can I view a detailed breakdown of a particular settlement?

    To view the settlement breakup and all transaction's details of a particular settlement:

    • Navigate to the Settlements section on the Razorpay Dashboard and click on the specific Settlement ID that you wish to refer to. Learn more about it here.
    • Navigate to a settlement via the TransactionsPayments section on the Dashboard. Learn more about it here.
    • Navigate to a settlement via the TransactionsRefunds section on the Dashboard. Learn more about it here.
  4. How to check settlements in my bank account?

    Each settlement has a Unique Transaction Reference (UTR) number, which is provided by our banking partners. You can see this number in the settlement section when you click on a particular settlement ID and when you download Settlement Reports from the Reports section. This is a unique reference number available across banks, which can be used to track a specific settlement in your bank account.

  5. The status of my settlement shows as failed on the dashboard. What do I do?

    If you have received a mail from our Support Team, please revert to the mail with the necessary details. If not, contact our Support Team for assistance.

  6. How to reconcile settlements along with the transactions made?

    Razorpay Dashboard provides different reports to help you with reconciliations. You may download the Settlement Recon Report from the Reports section of your Dashboard in a daily or a monthly format. The report contains transactions and the corresponding Settlement IDs.

  7. How does Razorpay manage extra credits for direct settlement merchants?

    Razorpay does not have access to direct settlement merchants' funds as the bank directly settles it to their account. The credits settled to the merchant's account are authorized by Razorpay, regardless of settlement transaction data available in the Razorpay system.

    Following are the two scenarios on how Razorpay manages extra credits for direct settlement merchants:

    • Scenario 1: Where the payment is marked as failed by the Razorpay system but is settled to the merchant's account, Razorpay can forcefully authorize the transaction.
    • Scenario 2: Sometimes, multiple payments with the same Payment ID get created due to the payment retry option provided by PSP/bank gateway. These payments never reach Razorpay and are directly settled to your account. As Razorpay does not receive the payment information, your Dashboard does not reflect such payments. Due to this, you are also unable to refund the payment. To tackle such situations, Razorpay will create new payments and authorize them for the extra credits. The merchant will have complete control over refunding such transactions.
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