What is a Settlement?

Settlement is the process through which a merchant receives money paid by their end users for a particular product/service. There are a number of entities involved in the settlement process. A detailed process is explained below:

Step 1
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The cardholder inputs their bank account/card details on the Razorpay Checkout form in order to pay for a product/service.
Step 2
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After successful authentication via OTP/ 3D secure, the money is debited from the cardholder’s account and a confirmation is sent to the cardholder.
Step 3
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The transaction amount is routed via the card networks to Razorpay’s acquiring banking partners.
Step 4
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Once Razorpay receives the amount, it is settled to your bank account after fees deduction.
The complete process takes a time of T+2* business days for domestic transactions, T being the date of capture of payment.
*Settlement cycle is subject to bank approval and can vary based on your business vertical, risk factor etc.

How to check Settlement Status?

All your settlements at one place
Simply click on the ‘Settlements’ tab on the left panel to view & manage all your settlements in one place
Created: The settlement has been created and is being sent to our nodal banking partners for further processing
Initiated: The settlement amount is being processed by our nodal banking partners and shall be credited to your settlement account shortly
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.
All your settlements at one place
Simply click on the ‘Settlements’ tab on the left panel to view & manage all your settlements in one place
Dashboard Options Image
Step 1

100% transparency on upcoming settlements

The amount and date for your next settlement can be found on your Razorapy dashboard - Home page, Transactions page & Settlements page

Step 1
Step 2

Settlement status for every transaction

Complete transparency on which transactions you have received payment for and which are still pending. Simply click on a transaction to see its settlement status.

Step 2
Step 3

Check your default settlement cycle

Navigate to the “My Account” section on the dashboard to view your default settlement schedules for ‘Domestic’ & ‘International’ payments

Step 3

How to reconcile settlements along with the transactions made?

Razorpay Dashboard provides different types of reports to help you with reconciliations. You can download the settlement recon report in daily or monthly format.

A sample for the same is shown here :
Each Entity ID has a date of creation and a “settled at” date.
Each payment has a Entity ID mapped to it, reflecting the settlement it belongs to.
Every settlement is mapped to a Unique Transaction Reference (UTR) number, which gets reflected in your bank account statement
Illustration
A few more fields are explained here in order to provide transaction level clarity:
AmountAmount
This is the amount debited from the cardholder’s account for the transaction
feeEntity ID
This is the unique identification code for each transaction entity
GSTSettlement ID
This is the unique identification code for each Settlement
DebitSettled at
This field represents the date when a past settlement had happened or an upcoming settlement will happen

A detailed tallying process is explained below:

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Amount against 3 payments = ? 400
Fee deducted (Razorpay fees + GST) = ? 9.44
GST = ? 1.44
Amount settled (setl_123):
Total Amount - Total Fees = ? 390.56
Payment Gateway Charges:
Total Fees - GST = ? 8
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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 downloadSettlement Reportsfrom 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.

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