API ReferenceIntegrationsKnowledge Base

Payouts

Payouts are made to contacts. For every payout, you need to specify the amount, the contact and the purpose of the payout. You are eligible to make payouts after sign up, account activation and KYC verification.

The payout amount, fees and tax are deducted from your RazorpayX account balance. These appear as a debit against your RazorpayX account.

In case a payout fails at any stage, a reversal is created which results in a credit to your RazorpayX account.

Payout Modes#

You can make payouts using any one of the following payout modes. The transaction limits and operating hours for each payout mode is listed in the below table.

Payout Modes are Case Sensitive:
The payout modes are case sensitive. When creating payouts using APIs, ensure payout modes are entered in upper case.

Virtual Account#

Payout Mode

Fund Account Type

Amount Limit

Processing Hours

IMPS

bank_account

Upto ₹2 lakh

Credited immediately on all days 24x7

NEFT

bank_account

Any amount

Credited within 2 hours between 1:00 a.m. and 6:45 p.m. on NEFT working days.*

RTGS

bank_account

Above ₹2 lakh

Credited in 30 minutes between 8:15 a.m. and 5:30 p.m. on RTGS working days.*

UPI

vpa

Upto ₹1 lakh

Credited immediately on all days 24x7

* NEFT/RTGS working days - All days except 2nd and 4th Saturdays, Sundays and any NEFT/RTGS holiday.

Current Account#

Payout Mode

Fund Account Type

Amount Limit

Processing Hours

IMPS

bank_account

Upto ₹2 lakh

Credited immediately on all days 24x7

NEFT

bank_account

Any amount

Credited within 2 hours between 8:15 a.m. and 6:15 p.m. on NEFT working days.*

RTGS

bank_account

Above ₹2 lakh

Credited in 30 minutes between 8:15 a.m. and 5:30 p.m. on RTGS working days.*

UPI

vpa

Upto ₹1 lakh

Credited immediately on all days 24x7

* NEFT/RTGS working days - All days except 2nd and 4th Saturdays, Sundays and any NEFT/RTGS holiday.

Payout Life Cycle#

A payout can have the following statuses during its life cycle:

  • pending
  • queued
  • scheduled
  • processing
  • processed
  • reversed
  • cancelled
  • rejected
  • failed

Read more: Stay informed about status changes via webhooks.

Note:

Pending#

If you have the Approval Workflow feature enabled on your account, a payout is assigned the pending state if the payout requires approval, according to the workflow you have setup.

At this stage, the payout details are stored in the system, but no processing has been done either by Razorpay or the contact's bank.

Your Action Required:
The payout remains in this state until and unless the payout is approved/rejected by the required user(s).

From the pending state, payouts can either move to the:

  • queued state if you do not have sufficient balance to process the payout.
  • scheduled state if you have scheduled the payout.
  • processing state if you have sufficient balance to process the payout.
  • rejected state if you reject the payout or if you did not approve the payout before the scheduled date and time.

Queued#

A payout is assigned the queued status only when you do not have sufficient balance in your business account.

At this stage, the payout details are stored in the system, but no processing has been done either by Razorpay or the contact's bank.

Your Action Required:
The payout remains in this state until you add sufficient funds to your business account.

From the queued state, payouts can either move to the:

  • processing state when you add sufficient balance to process the payout.
  • cancelled state if you cancel the payout.

Note:
The scheduled state does not apply to queued payouts.

Learn more about queued payouts.

Scheduled#

The payout remains in the scheduled state till the scheduled date and time is reached. At this stage, the payout details are stored in the system, but no processing has been done either by Razorpay or the contact's bank.

From the scheduled state, payouts can either move to the:

  • processing state when the scheduled time is reached.
  • cancelled state if you cancel the payout.
  • failed state if you do not have sufficient balance to process the payout.

Note:
The queued state does not apply to scheduled payouts.

Learn more about scheduled payouts.

Processing#

A payout can acquire the processing state in one of three ways:

  • From the pending state, when you approve the payout and you have sufficient balance to process the payout.
  • From the queued state, when you add sufficient funds to your account to process the payout.
  • Immediately, when a payout is created if you do not have the Queued Payouts or Approval Workflow feature enabled on your account.

At this stage, either Razorpay or the contact's bank could be processing the payout. No further action is required by you while a payout is in the processing state.

From processing state, payouts can either move to the:

  • processed state if the payout is successful.
  • reversed state if the payout fails.

Processed#

The processed status means that payout has been processed by the contact's Bank.

A payout in the processed state can move to the reversed state if a payout failure is detected.

This can happen due to various reasons such as the customer's bank reversing the transaction or if the payout was reversed by the clearing house.

Reversed#

A payout acquires the reversed state when the payout operation fails. This can happen due to issues with our partner banks, clearing house or even the customer's bank.

As soon as Razorpay identifies a payout failure scenario, it moves the payout to the reversed state and creates a reversal transaction that credits your business account with the original payout amount including fees and tax.

No further action is possible on a payout in this state.

Rejected#

A payout in the pending state acquires the rejected state when:

  • It is manually rejected by you.
  • It is not approved by you before the scheduled date and time.

No further action is possible on a payout in this state.

Cancelled#

A payout can reach the cancelled state when you manually cancel a payout in the:

  • queued state. You can cancel a payout in the queued state either from the Dashboard or using our APIs.
  • scheduled state. You can cancel a payout in the scheduled state from the Dashboard.

A payout that has been cancelled acquires the cancelled state. No further action is possible on a payout in this state.

Failed#

This status is applicable only when a payout is made using your current account balance.

  • Payouts in the processing state move to the failed state when they are failed by our current account partner bank.
  • Payouts in the scheduled state move to the failed state if you do not have sufficient balance to process them.

No further action is possible on a payout in this state.

Reversal Transaction#

A reversal transaction is created whenever a payout fails. Failure is possible at several points, at Razorpay, at the contact's bank, or elsewhere. In some rare scenarios, failure might happen a few days after the payout is moved to the processed state.

As soon as Razorpay detects a failure, we create a reversal transaction and credit the payout amount (including the fees and tax) to your business account. The original payout transaction status is changed to reversed.

Anytime a payout fails, a webhook is triggered to notify of the failure. A payout failure event is accompanied by a reversal transaction.

You can view a list of reversed transactions from the RazorpayX Dashboard.

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