- The cardholder inputs their bank account/card details on the Razorpay Checkout form in order to pay for a product/service.
- After successful authentication via OTP/ 3D secure, the money is debited from the cardholder’s account and a confirmation is sent to the cardholder.
- The transaction amount is routed via the card networks to Razorpay’s acquiring banking partners.
- Once Razorpay receives the amount, it is settled to your bank account after fees deduction.
How to check Settlement Status?
- All you need to do in order to check pending and processed settlements, is to log in to your Razorpay Dashboard.
- After logging in, click on “Settlements” tab on the left hand side, as shown.
- Each settlement generated has a unique settlement ID attached to it along with the amount settled, as seen
- Created: The settlement amount is being processed by our nodal banking partners and shall be credited on the same working day.
- Processed: The settlement amount has been successfully credited into your account.
- Failed: The settlement to your account has failed. This could be due to incorrect bank account details (bank account number or IFSC code) entered by you. You will receive a mail from Razorpay in such an event.
How to reconcile settlements along with the transactions made?
A sample for the same is shown here :
- Each Payment ID has a date of creation and a “settled at” date.
- Each payment has a Settlement ID mapped to it, reflecting the settlement it belongs to
- As you can see, there are a few payment IDs which do not have a settlement ID mapped to them. These are payments which have been created less than 3 working days before. The report will show a settlement ID as soon as the settlements for these are initiated.
- A few more fields are explained here in order to provide transaction level clarity:
- Amount: This is the amount debited from the cardholder’s account for the transaction
- Fee: This is the total fee deducted as payment gateway charges by Razorpay. Keep in mind, this fee is inclusive of Service Tax as well.
- Service Tax: A service tax amount equivalent to 15% of the Payment Gateway charges is deducted, as per regulations
- Debit: This is the amount deducted from your running balance when a settlement is successfully processed.
A detailed tallying process is explained below:
How do I check my settlements in my bank account statement?
Each settlement has a Unique Transaction Reference (UTR) number, which is provided by our banking partners. You can see this number when you download Settlement Reports from the Reports section. This is a unique reference number available across banks, which can be used to track a particular settlement in your bank account.