Auto Third-Party Validation (TPV) on Smart Collect
Third-party validation is a very important step in the Banking, Financial Services and Insurance sector. As per SEBI guidelines, businesses operating in these sectors must ensure that payments are accepted from the customers' registered, KYC-approved bank accounts only.
Using Razorpay Smart Collect API, you can comply with the regulatory guidelines to ensure that the customers make payments only from their registered bank accounts (TPV). If payments are made from the unregistered accounts (non-TPV), they are automatically refunded to the customers.
When you create a virtual account, send the
allowed_payers array with the customer's bank
ifsc. This helps to identify TPV transactions and automatically refund non-TPV transactions.
Know more about API Endpoints.
Know more about Supported Banks of TPV.