Razorpay enables you to accept online payments from your customers. When a customer makes a payment, it usually flows through the following states:
This is the initial step wherein the customer submits the payment information and it is sent to Razorpay. The payment has not been processed at this stage.
An authorisation is performed when the bank successfully authenticates the customer's payment details. The money is deducted from the customer’s account by Razorpay, but will not be settled to your account until the payment is captured, either manually or automatically. Any payment in this state is auto-refunded to the customer if not captured within 5 days of creation.
When the payment status is changed to captured, the payment is verified as complete by Razorpay. After the capture, the amount is settled to your account as per the settlement schedule.
You can refund the payments that have been successfully captured at your end. The amount is reversed to the customer's account.
Any unsuccessful transaction is marked as failed and the customer will have to retry the payment.
The following state diagram depicts the flow of money through the payment states:
By default, once your customer completes a payment, it is automatically moved to the captured state. However, the payment can remain in the authorized state in the following scenarios:
Due to external factors such as network issues or technical errors, Razorpay may not immediately receive payment status from the bank. In this case, Razorpay polls the APIs intermittently for 5 days to check the status. If we receive the payment status as successful, the payment is moved to the authorized state. Know more about late authorization.
Specific business use case
Some businesses such as those in the Ecommerce industry, may retain the payment in the authorized state and later move them to the captured state.
You must ensure that all payments in the authorized state are moved to captured state within 5 days of creation. This is mandatory because payments that are not captured within this time period will be refunded automatically to customers.
You can configure Payment Capture settings on the Razorpay Dashboard. You can choose to: