Billing Configuration

Merchants can now configure their payment and settlement service charges. Merchants can either bear the service charges or bill the charges directly to their linked vendor account in the transaction split.

There are three types of services charges:

  • Payment Gateway and Easy Split Charges
  • Standard and Instant Settlement Charges
  • On-Demand Settlement Charges

Payment Gateway Charges
Charges for collection of payment basis the mode of payment and payment gateway used.

Easy Split Charges
These are to split a transaction into multiple settlement accounts. These charges will be based on the order amount and not on the number of splits that are created for the order.

Settlement Charges
Settlement charges for the frequency of the settlement cycle configured for a vendor account. Faster or instant settlement cycles will be at a slightly higher cost than the standard T+2 settlement cycle.

On-Demand Settlement Charges
On-Demand settlements are routed through RTGS/IMPS, where merchants can expect the settlements instantly by invoking the on-demand settlement. These settlements are available 24*7 and charged according to the settlement amount.

Configuration Models Available

Bill ToPrepaidPostpaid
Merchant
VendorNot available

If merchants bears the service charges, both the prepaid and postpaid models are available. Merchants have complete control of whom to charge for each set of charges associated with Easy Split.

If the vendor bears the service charges, only the prepaid model is available. The vendor has no control over these charges as it is configured by the merchants.

Prepaid Model

If you opt for the prepaid model, the service charges are deducted directly from the settlement amount. We settle the remaining amount to the merchant account or vendor account respectively.

For example, let us assume the following scenario mentioned in the table below:

DescriptionAmount
Transaction AmountRs. 100
Payment Gateway & Easy Split ChargesRs. 2
Merchant SettlementRs. 10
Vendor SettlementRs. 90

Case 1: Merchant bears the settlement amount

If the merchants bears the settlement amount, the service charges are deducted from the merchant settlement amount and the remaining amount of Rs. 8 is settled to the merchant account. The vendor settlement amount is untouched, and Rs. 90 is settled to the vendor account.

Case 2: Vendor bears the settlement amount

If the vendor bears the settlement amount, the service charges are deducted from the vendor settlement amount and the remaining amount of Rs. 88 is settled to the vendor account. The merchant settlement amount is untouched, and Rs. 10 is settled to the merchant account.

Bill ToMerchant Settlement AmountVendor Settlement Amount
Merchant890
Vendor1088

Postpaid Model

If you opt for the postpaid model, merchants receive an invoice which they have to clear at the end of the month.

For example, let us assume the following scenario mentioned in the table below:

DescriptionAmount
Transaction AmountRs. 100
Payment Gateway & Easy Split ChargesRs. 2
Merchant SettlementRs. 10
Vendor SettlementRs. 90

The postpaid model credits the merchant and vendor accounts with the full settlement amount.
Cashfree Payments sends a collective invoice along with the Payment Gateway charges. Merchants pays for the invoice.

Bill ToMerchant Settlement AmountVendor Settlement Amount
Merchant1090
Vendor1090
Invoice amount to merchant20

You will receive details on the service charges in the following sections:

  • Reports
  • Settlement API
  • Vendor Recon API
  • Vendor Settlement Webhook

Note

  • The invoiced amount to vendor capability is not available in the postpaid model currently.
  • Merchants can request this functionality through their account managers. It is a one-time setup, and merchants can edit the configurations at any point in time.