Settlement and Reconciliation Guide

What is Payment Gateway Settlement?

A settlement in payment gateway refers to the process by which the payment made by a customer for a product/service, is credited to the merchant account.

Types of Settlements Offered by Cashfree

Cashfree offers two distinct settlement types to accommodate different merchant needs and cash flow requirements.

Standard Settlements

The standard settlement cycle in Cashfree is T+2* days, where T is the date of the transaction. For instance, if the transaction takes place on a Monday, the settlement will be credited to the merchant's account on Wednesday. The standard settlements happen only on bank working days.

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

Instant Settlements

The Instant Settlement cycle in Cashfree lets merchants get access to their funds in 15 mins! Merchants can make use of the settled funds for disbursals to vendors and other partners. These settlements are processed even on bank holidays!

How Settlement Cycles Work in Cashfree

Standard Settlement Cycle Process

  1. Customer enters the payment details in Cashfree's checkout forms
  2. The transaction is authenticated by the customer using OTP verification
  3. The amount is received at Cashfree's acquiring banks
  4. Amount is credited in merchant's account in T+2* days after payment gateway deductions
  5. Merchant receives money in T+2* days

Instant Settlement Cycle Process

  1. Customer enters the payment details in Cashfree's checkout forms
  2. The transaction is authenticated by the customer using OTP verification
  3. The amount is received at Cashfree's acquiring banks
  4. Cashfree Payments credits the merchant's accounts instantly after Payment Gateway deduction
  5. Merchant receives the money instantly

Tracking Settlements in Cashfree

Cashfree makes it easier for merchants to track all their settlements in a single place. The Summary gives a quick overview of the total recent settlements that have been processed, and the settlements tab lets the merchants keep track of the default and instant settlements.

Settlement Tracking Features

Apply Filters

Customize your report for a specific time period and track the status of the settlements within the time period.

Search by Order ID

Find the settlement status for a particular order by entering the appropriate order ID.

Track Status

Each entry will also hold the corresponding status of the settlements.

How to Reconcile Settlements with Transactions

The reports module in PG dashboard lets you download the settlements report on a daily or monthly basis, and reconcile them. Each settlement will contain the list of transactions that were included in the settlement cycle.

Settlement Report Information Fields

Each entry will bear the following information with respect to the settlement:

Unique Transaction Reference Number

This unique ID is used to identify each settlement.

Individual Transaction Date and Time

List of transactions with their corresponding date and time.

Net Settlement Amount

The actual amount from the transaction that has been settled to the merchant's bank account.

TDR Charges

The payment gateway processing fee for the particular transaction.

Transaction Amount

The amount for each transaction inside the settlement cycle.

Settlement Date

The date on which these settlements have been made.

Adjustments in Settlement Report

The second part of the settlement report has the details of adjustments that were made in the particular settlement cycle. These adjustments also bear the EVENT of the adjustment, i.e, the type of adjustment that has happened in the settlement cycle.

Types of Settlement Adjustments

Adjustment Type Entry Type Description
FUND_SWEEP DEBIT A DEBIT entry which implies that the corresponding amount has been settled in the merchant's settlement account
SETTLEMENT_COMPUTE CREDIT A CREDIT entry which is a summation of all transactions that are considered for settlement in the given settlement cycle
REFUND DEBIT A DEBIT entry that corresponds to the refund initiated by the merchant
DISPUTE DEBIT A DEBIT entry for a dispute raised against a transaction
RISK DEBIT A DEBIT entry for a transaction identified as a risk transaction

Benefits of Cashfree Settlement Solutions

About Cashfree Payments

Cashfree Payments enables 1 Million+ growing businesses in India and across the globe to collect payments, make payouts, manage international payments, and more. Cashfree Payments is backed by SBI, Y Combinator, Krafton, and Apis partners and was incubated by PayPal.

Regulatory Authorizations

RBI Authorised Payment Aggregator License Certificate of Authorisation No. 266/2025

RBI Authorised Prepaid Payment Instrument (PPI) Provider Certificate of Authorisation No. 209/2024

Getting Started with Cashfree

Account Features

Merchants can create an account or contact sales experts to explore custom solutions for collecting customer payments, making payouts, managing international payments and more.