Balances

Current Balance

After deduction of fees and tax, the payments received from your customers are added to your Merchant Balance or Current Balance. According to your settlement cycle, this accumulated amount is settled in your bank account.

• The current balance is used to process refunds to your customer, settlements to your linked accounts and chargebacks.
• It is important for you to maintain a sufficient current balance.
• We do not charge any fee to process refunds. However, the fees and tax charged for processing the original transaction are not refunded to you when you process a customer refund. This amount is deducted from your current balance when you process your refund.

Reserve Balance

Reserve Balance allows you to process refunds or settlements to linked accounts even if you do not have a sufficient current balance. The amount you add as the reserve balance becomes the maximum negative limit for your account. Razorpay does not deduct funds from your reserve balance. It uses the reserve amount as a negative limit for your account balance.

• To increase your negative balance limit, you can

  add funds to your reserve balance

  from the Dashboard. You will have to transfer funds to your reserve balance only once in most cases.
• You can add funds to Reserve Balance using the Razorpay Dashboard through either

  UPI

  or

  Bank Transfer

  .

Add Funds to Reserve Balance Using UPI

1. Log in to the

   Razorpay Dashboard

   .
2. Click Account & Settings in the left navigation.
3. Click Balances under Payments and refunds section.
4. Click Add Funds.
   
5. Select UPI.
6. Enter the description and amount to be added.
7. Click Add Credits.
8. Enter the email and contact number on the checkout pop-up page and click Proceed.
9. Select UPI, enter UPI ID or scan the QR, click Pay Now and complete the payment.

Your Reserve Balance is updated.

Add Funds to Reserve Balance Using Bank Transfer

1. Log in to the

   Razorpay Dashboard

   .
2. Click Account & Settings in the left navigation.
3. Click Balances under Payments and refunds section.
4. Click Add Funds.
5. Select Bank Transfer.
6. Copy the account number and IFSC code.
   
7. Open your netbanking portal, create a beneficiary with these details and transfer the amount.

Example of Current Balance and Reserve Balance

Let us say you have a current balance of ₹0 and a reserve balance of ₹1,000