Handle Late Authorized Payments
Use Orders API or webhooks to handle late authorisations.
Late authorized payments are rare situations, as only less than 0.5% of the total payments get late authorized. The payments that are late authorized and not captured are auto-refunded in 5 days.
Based on your business needs, you can decide how to handle payments that may get late authorized. This largely depends on whether you can provide services for the late authorized payment.
- If you cannot provide service for late authorized payments, they can be ignored. Payments that stay in the
authorized state (after the auto or manual timeouts) will be auto-refunded to customers within 5 working days (without considering the bank's processing time). For example, an online food ordering service needs to deliver food immediately on receiving payments. As the need to deliver the service is immediate in this business, you cannot oblige the customers if the payment gets authorized late. In this case, you can ignore the payment made as it will be auto-refunded and communicate to the customer accordingly.
Auto refunds are issued within 5 days. However, if you want to issue a refund instantly, you can capture the payment and issue a refund as per your requirements.
- If you wish to provide the service later, there are ways in which you can keep close track of these payments and fulfil the order when it is authorized.
For example, if you are an online marketplace merchant, who sells clothes and accessories, you can mark the order as 'pending' in your system and deliver the order when the payment gets authorized.
Ignore these orders and communicate to the customer. Payments that stay in an
Authorized state are auto-refunded to customers within 5 working days (without considering the bank's processing time).
If you are an online food delivery service, you need to deliver food immediately on receiving payments. In this case, you cannot wait for late authorization of payments. Ignore this order and inform the customer about order cancellation and auto-refund of any amount that may have got debited from the customer's account.
Auto refunds are issued within 5 days. However, if you want to issue a refund instantly, you can capture the payment and issue a refund as per your requirements. Know more about Refunds.
You can keep a track of these payments and fulfil the order when it is authorized.
If you are an online marketplace merchant, who sells clothes and accessories, you can mark the order as 'pending' in your system and deliver the order when the payment gets authorized.
Communicate with Your Customers
When customers reach out to you about a payment that was debited from their bank accounts before the successful order completion, ensure that you clearly communicate the payment status and how you will be handling it. You can choose to send out a message such as the following:
If your order has failed, any amount debited will be auto-refunded in 5 working days (not considering your bank's processing time).
This is the easiest way to handle late authorization. This feature gives you control over which payments should be auto-captured and which payments should be auto-refunded by allowing you to:
- Automatically capture all payments.
- Setup custom timeouts for automatic and manual capture.
- Manually capture all payments.
Know more about Payment Capture settings.
Order API makes it easier to handle cases of late authorization in the following ways:
It clubs multiple payment attempts against the same order. If one of the payments is successful and another attempt gets Late Authorized, the late authorized payment is refunded immediately, and only successful payment is marked against the Order.
Allows you to auto-capture payments based on the parameters passed in the Orders API. Capture values passed in the Orders API take precedence over the Payment Capture settings configured on the Razorpay Dashboard.
Webhooks send you notifications when payments move to the Authorized state. The webhook
payment.authorized sends you a notification when the payment you were expecting to be Late Authorized moves to Authorized state.
You can send email notifications to your customers about the payment status, asking them to take further action to deliver the service. You can set up webhooks from the Razorpay Dashboard. Know more about webhooks documentation.
No. While other gateways also face these interruptions, Razorpay ensures that you have a way of handling late authorized payments using:
- Orders API
- Payment capture settings on the Razorpay Dashboard.
You can track the status of the payment on the Razorpay Dashboard.