Razorpay settlement reconciliation
Last reviewed·ReconPe Editorial
Match Razorpay settlements to bank credits by UTR with truncation-aware fingerprinting, audit MDR variance per instrument against your contracted rate card, handle T+1 to T+3 settlement cycles with cross-run exception memory, and resolve refunds and chargebacks that debit weeks after the original capture — ReconPe links them to the original settlement automatically rather than leaving them as dangling bank entries.
Where Razorpay reconciliation breaks down manually
UTR and RRN matching is manual and error-prone
Every Razorpay settlement carries a UTR or RRN that should appear verbatim on the bank statement. In practice, bank CSVs truncate, reformat, or prefix the reference. Cross-matching across hundreds of settlements a day is tedious and mistakes are silent.
MDR varies by instrument and merchant tier
Credit card MDR, UPI MDR, debit card MDR, net-banking MDR, and international card MDR all have different slabs — and can change mid-month based on promotional pricing. Manually verifying the right rate was applied per transaction is impractical.
T+1, T+2, T+3 cycles mix across products
Razorpay offers different settlement cycles depending on your product (standard, Route, instant settlements). Payments captured today may arrive across three different days in your bank — reconciling this timing without a matching engine is error-prone.
Refunds and chargebacks compound the mess
Refunds are netted from future settlements. Chargebacks are deducted on a different cycle with additional fees. Linking each refund back to the original capture and verifying the right fee was charged requires matching four separate reports.
How ReconPe handles Razorpay
UTR/RRN matching with fuzzy cascade
ReconPe's matching cascade (exact key → edit-distance fuzzy → token overlap) handles bank reference formatting drift — so a UTR that's truncated or prefixed on the bank side still matches the Razorpay settlement cleanly.
Per-transaction MDR variance detection
Upload your Razorpay MDR agreement once. Every transaction's actual MDR is compared against the expected slab for its instrument, and variance is flagged per capture — catching rate errors that would otherwise go unnoticed.
The Razorpay details worth real money
Gateway reconciliation is where regulation, instrument mix and bank-statement noise collide. These are the specifics ReconPe gets right because each one was a real problem before it was a feature.
UPI bank-to-bank MDR is statutorily zero
Since 2020, Section 10A of the PSS Act and Section 269SU of the Income-tax Act mandate zero MDR on UPI bank-to-bank transactions. Any fee charged on a UPI capture is a regulatory violation you can claim back — ReconPe flags it as a UPI MDR violation, with the rupee amount and effective rate.
The UPI carve-outs that are NOT violations
ReconPe does not raise a false alarm on the cases that legitimately carry MDR: UPI on a RuPay credit card (MDR applies), UPI on a PPI wallet above ₹2,000 (interchange paid by the issuing provider, not you), and international UPI. Knowing the difference is what keeps the flag credible.
UTR matching survives a mangled bank narration
Bank statements truncate, prefix and reformat the settlement reference. ReconPe matches in three passes — exact substring, canonical key after stripping the routing prefix, then truncated canonical for the ~30-character cut — so a reformatted UTR still ties to its settlement instead of falling out as unmatched.
Cycles and reversals land on the right date
T+1, T+2 and T+3 settlements are reconciled on the settlement date, not the capture date, so mixed cycles do not create phantom breaks. Refunds and chargebacks that debit weeks later are linked back to the original capture rather than left dangling on the bank side.
Frequently asked
How does ReconPe match Razorpay settlements to bank credits?
Primary matching is on UTR/RRN, which appears on both the Razorpay settlement report and the bank statement. When formatting differs (truncation, prefixing, case changes), ReconPe's fuzzy matching layer handles the variance. Secondary matching uses amount + date proximity as a fallback, flagged at lower confidence for review.
Can ReconPe detect Razorpay MDR variance?
Yes. Every captured transaction in the Razorpay report carries payment method metadata (card network, UPI, netbanking, wallet). ReconPe applies your negotiated MDR slab per instrument and compares against the actual fee charged — variance is flagged per transaction with the rupee impact.
How does ReconPe handle T+1, T+2, T+3 settlement cycles?
Matching is done on the settlement date, not the capture date. ReconPe groups transactions by settlement ID and reconciles each settlement against its corresponding bank credit — regardless of whether the cycle was T+1, T+2, or T+3.
What about Razorpay Route (partner payouts)?
Route settlements appear as separate line items in the settlement report. ReconPe treats Route payouts as their own settlement type and reconciles them independently — so partner disbursements don't distort your primary merchant reconciliation.
Can ReconPe handle refunds and chargebacks?
Yes. Refunds are linked back to the original capture by payment ID and reconciled as negative settlements. Chargebacks are flagged as their own exception type with full context — original transaction, chargeback reason code, fee deducted, and the settlement cycle it hit.
Do I need a developer to integrate ReconPe with Razorpay?
No. Export the Razorpay settlement report CSV from your dashboard and the bank statement from your net-banking. Upload both. ReconPe handles the rest. No API integration is required for the core workflow.
What a settlement actually settles
A seller asks Riya: ₹50,000 in sales Monday, only ₹48,041 in bank — two days late. The amount sits in four fee layers. The date sits in T+N and the holiday calendar.
Match your next Razorpay cycle to bank in minutes
Free tier — 5 free reconciliations. Upload your settlement report + bank statement and catch MDR variance you didn’t know was there.
Start free