Settlements

Cashfree Settlements

What are settlements?

Settlements refer to the process of transferring funds to your (merchant) bank account after aggregating the transaction amount and deducting our applicable charges and adjustments (Refunds, Chargebacks, etc).Read more about this

Different types of settlements:

1. Standard settlements (Default)- Standard settlements follow a T+2 settlement cycle, where T is the transaction date.

2. Instant settlements- Instant Settlements enable you to access your funds within 15 minutes, significantly faster than the standard T+2 settlement cycle.

3. On-Demand settlements- On-demand settlements allow instant fund transfers to your bank 24x7, including holidays, for a small fee. Activation is required, as the default cycle is T+2 days.

How do I check settlements in my bank account?

Each settlement includes a Unique Transaction Reference (UTR) provided by our banking partners. You can view this number in the settlement section by clicking on a specific settlement ID. Additionally, Settlement Reports can be downloaded from the Reports section to access the UTR, which serves as a unique reference across banks for tracking specific settlements in your bank account.

The status of my settlement shows as failed on the Dashboard. What do I do?

Based on the settlement’s failure reason, take the corrective actions and this will get settled in the next settlement cycle.

How does on-demand settlement work, and what are the steps to activate it?

With on-demand settlements, you can request settlements to your bank account on any day and at any time 24x7, including holidays.

You can specify the amount you want to withdraw as per your requirement. A small fee is applicable to process these settlements. On-demand settlements enable you to receive the unsettled amount to your bank account instantly 24x7 including holidays. You can specify the amount you want to withdraw as per your requirement. A small fee is applicable to process these settlements.

By default, the settlement cycle is t+2* days, where ‘t’ is the day of the transaction. To use on-demand settlements, the feature must be enabled.

On-Demand Settlement Flow

Activate On-Demand Settlements

To enable instant settlement from the Cashfree Payments dashboard:

1. Go to the Payment Gateway Dashboard.
2. Navigate to the Settlements section. 3.Look for the On-Demand Settlements option. If you’re eligible, you’ll see options to configure On-Demand settlements.

After activation, you can request settlements instantly 24x7 including holidays.

How to initiate On-Demand Settlements?

1. Go to Payment Gateway Dashboard > Settlements > On-Demand.

2. In the On-Demand settlement screen, click Request Activation. The feature activation request will be sent to your Cashfree Payments account manager, and they will enable it for you. You will receive an email after the feature has been activated.

After activation, you can request settlements instantly 24x7 including holidays.

Initiate On-Demand Settlement

To initiate an on-demand settlement, you must first get the feature activated. After activation, you can request settlements instantly 24x7 including holidays.

To initiate on-demand settlement,

1. Go to Payment Gateway Dashboard > Settlements > On-Demand > click Settle Now.

2. In the On-Demand Settlement screen, specify the amount you want to withdraw and click Confirm. You will see the amount you are allowed to withdraw and the additional charges applicable is also shown.

Settlement Amount You will see a success screen as shown below:

Settlement Success

You will see all the settlements received in the Settlements > On-Demand screen. You can click the individual settlements to know more details.

Note: Settlement cycle is subject to bank approval and can vary based on transaction type, business category/model, risk parameters and other factors.

Is there a bank holidays list I can refer to for settlement purpose?

At Cashfree, we follow the RBI’s bank holiday list for Mumbai. You can refer to the list here. There can be other holidays that banks may observe which may vary bank to bank and state to state. We send regular updates related to settlements, to receive the emails, you can get your email ID for settlement notifications using your Cashfree Dashboard.

How are settlements processed?

Cashfree offers you the fastest settlement cycle. By default the settlement cycle will be T+2* days, which means a payment captured on Monday, will be credited to your account on Wednesday i.e three working days. Please note: The settlements are not processed on banking holidays. You can refer to the RBI’s bank holiday list here.

Note :Settlement cycle is subject to bank approval and can vary based on transaction type, business category/model, risk parameters and other factors.