Available Balance
After the deduction of fees and tax, the payments received from your customers are added to your Available Balance.- This accumulated amount is settled to your bank account as per your settlement cycle.
- We use your available balance to process chargebacks, refunds to your customers and settlements to your linked accounts.
Reserve Balance
Reserve Balance allows you to process refunds or settlements to linked accounts when you do not have a sufficient available balance/have negative available balance. The amount you add as the reserve balance becomes the maximum negative limit for your account. Your transactions up to this limit do not fail.How does Reserve Balance Work
When your available balance becomes 0, we use your reserve balance to process transactions up to this limit, that is, ₹1000. Your transactions will not fail.- To increase your negative balance limit, you can add funds to your reserve balance from the Dashboard. You will have to transfer funds to your reserve balance only once in most cases.
- You can add funds to Reserve Balance using the Dashboard through either UPI or Bank Transfer.
Example of Available Balance and Reserve Balance
Let us say you have an available balance of ₹0 and a reserve balance of ₹1,000Scenario | Without Reserve Balance | With Reserve Balance
Opening Balance | Available Balance → ₹0 Reserve Balance → ₹0| Available Balance → ₹0 Reserve Balance → ₹1,000
You receive and capture payment of ₹1000.Let us say we charge a fee of ₹5 to process this transaction. | Available Balance → ₹995 Reserve Balance → ₹0| Available Balance → ₹995 Reserve Balance → ₹1,000
You process a full refund of ₹1000 for the above payment. | The refund fails since you do not have a sufficient available balance. | The refund is successfully processed. Available Balance → negative ₹5 Reserve Balance → ₹1,000Add Funds to Reserve Balance
You can add funds to Reserve balance through UPI or bank transfer payment methods. To add funds to Reserve balance using UPI:- Log in to the Dashboard.
- Click Account & Settings in the left navigation.
- Click Balances under Payments and refunds section.
- Click Add Funds.
- Select UPI.
- Enter the description and amount to be added.
- Click Add Credits.
- Enter the email and contact number on the checkout pop-up page and click Proceed.
- Select UPI, enter UPI ID or scan the QR, click Pay Now and complete the payment.
Handy TipsIt may take 2-3 hours for the Reserve balance to reflect in your Razorpay Account.To add funds to Reserve balance using bank transfer:
- Log in to the Dashboard.
- Click Account & Settings in the left navigation.
- Click Balances under Payments and refunds section.
- Click Add Funds.
- Select Bank Transfer.
- Copy the account number and IFSC code.
- Open your netbanking portal, create a beneficiary with these details and transfer the amount.
Handy TipsIt may take 2-3 hours for the Reserve balance to reflect in your Razorpay Account.300 is applicable.
- If Opening balance is 0, your Negative balance is - 500 (due to 0-500).
- If Opening balance is 300, your Negative balance is - 200 (due to 300-500).
Add Funds to Current Balance
To add funds to your Current balance:- Log in to the Dashboard.
- Navigate to Account & Settings and click Balances under Payments and refunds section.
- Click Add Funds in the Current Balance section and follow the on-screen instructions.
Handy TipsWhen you add funds to your Current balance, fees and tax are deducted and the remaining amount is added to your Current balance. The fees and tax charged are the same as what is charged on payments received from customers.For example, according to your pricing plan for a 1,000 payment, the fees and tax is 5. When you add 1,000 to your current balance, 5 (fees and tax) is deducted and 995 is added to your current balance.Example 1Let us say you have a Current balance of 1,000.
Scenario | Current Balance
Opening balance | 1,000
You receive and capture a payment of 1,000.Let us assume we charge a fee of 5 to process this transaction. | 1995( 1,000 + ( 1,000 - 5))
You process a full refund of 1,000 for the above payment. | 995( 1995 - 1,000)Example 2Let us say you have a Current balance of 0.Scenario | Current Balance
Opening balance | 0
You receive and capture a payment of 1,000.Let us say a fee of 5 is charged by us to process this transaction. | 995( 0 + ( 1,000 - 5))
You try to process a full refund of 1,000 for the above payment. | The refund fails since you do not have a sufficient Current balance.Segregated Balances
Razorpay now supports balance segregation based on payment channel type. If you are an omni-channel business (PG + POS) or a cross-border business, your balances are maintained separately for each channel type.Benefits
- No cross-channel fund mixing: Complete isolation between Online (Domestic transactions + International Cards), In-Person and APM International funds.
- Regulatory compliance: Adherence to RBI guidelines on fund segregation.
- Zero settlement failures: Settlements never fail due to cross-channel balance issues.
- Instant Settlements for all businesses: Instant Settlements now available for omni-channel and cross-border businesses.
- Automated POS rental collection: Device rentals deducted only from In-Person balance.
- Better visibility: Clear channel-wise and balance view.
Types of Segregated Balances
Channel Type | Description | Transactions Included | Additional Details
Online (Domestic transactions + International Cards) | Domestic online payments and international card transactions | PG domestic transactions (cards, UPI, netbanking and wallets), international card payments | Supports Instant Settlements.
In-Person | POS terminal transactions | All POS/offline transactions | POS device rentals are automatically collected from this balance. Operates independently from online transactions.
Alternate Payment Method (International) | Balance from international payment methods such as PayPal, Stripe and other cross-border payment methods | International bank transfers, cross-border payments via supported APM providers | Settled separately from domestic balances. Subject to forex conversion and international settlement timelines.How Segregated Balances Work
With balance segregation:- Credit Operations: When a payment is captured, it is credited to the appropriate balance based on the payment channel:
- Domestic online payment → Online balance
- International card payment → Online balance
- POS transaction → In-Person balance
- International APM payment → APM (International) balance
- Debit Operations: Settlements, refunds, chargebacks and adjustments are processed only from the respective balance account. A refund for a POS payment will only debit from your PG In-Person balance.
- Independent Settlements: Each balance account has its own settlement cycle and can have Instant Settlements enabled independently.
View Segregated Balances
You can view your segregated balances on the Dashboard:1
Step 1
Log in to the Dashboard.
2
Step 2
On the Home Page, you will see separate balance cards for each active balance account.
3
Step 3
Navigate to Account & Settings → Balances for a detailed view.
- Current balance amount.
- Channel type (Online (Domestic transactions + International Cards), In-Person or APM International).
- Next settlement date.
- Link to view settlement history.
Handy TipsWith segregated balances, your POS operations and online payments work completely independently. A high volume of online refunds will never affect your POS settlements and vice versa.