Late Payment Authorizations

Check the Late Payment Authorization and its causes; differences between normal and late authorized payments and how to handle them.

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 bank's payment status.

How Razorpay Handles Late Authorizations🔗

If there is no response from the bank about a payment that a customer has made, the Razorpay Dashboard displays 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 polls the bank at various intervals for 5 days, from the payment creation day. During this time, if our system receives the payment status from the bank as Successful, the payment is marked as Authorized. The payments authorized in this manner are considered as late authorized.

Handle Late Authorization

Handy Tips
On 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 , Razorpay automatically refunds the amount to the customer. As a best practice, you should subscribe to the payment.authorized webhook to get notifications about authorized or failed payments.

Not all payments that appear as failed are 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 proceed 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 cause for late authorizations. 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 Razorpay can receive the payment status from the bank later, payment is moved to the authorized state leading to late payment authorization. You have little control over these interruptions. Know more about handling late authorisations to avoid customer inconvenience.

Normal Authorizations Vs. Late Authorizations🔗

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

Normal Payment

Late Authorized Payment

The customer completes the payment; bank gateway notifies Razorpay.

the customer completes the payment; bank gateway fails to notify Razorpay.

If the bank gateway response is Successful (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.

Handy Tips
Authorized payments are payments that the customer completes. You need to capture the payment for it to be settled in your account.