How payment gateway processing and settlement works

Payment gateway payments operate on a two-day timeline, where 't' represents the transaction day (not to be confused with the Time of payment) and 't+2' signifies the payment settlement day. On 't,' when your customer makes a payment using the link sent by you, the payment gateway authorizes the transaction and turns your invoice paid after debiting the money from your customer's account. However, the actual transfer of funds to your account occurs on 't+2,' allowing time for verification and security checks.

How long does it take when a customer pays through the payment gateway

The captured payments are settled within two working days from the date of capture.

(Working days do not include second and fourth Saturdays, Sundays, and bank holidays.)

If the settlement day is a bank holiday, the settlement is made on the next working day after the bank holiday.

Payment settlement on regular working days

You sent an Invoice and a payment link for the amount of 2000 to your customer on September 12, 2023 (Tuesday), and your customer paid on the same day using the payment link. So, the invoice will be marked paid on the same day. The money will be received in your bank account by September 14, 2023 (Thursday) by 5 pm.

Payment settlement on Bank holidays

Now, let's imagine you sent an invoice and a payment link for the amount of 3000 to your customer on September 15, 2023 (Friday), and the customer paid on September 15, 2023, that is, Friday. As the payment gateway doesn't process payments on bank holidays, you won't be receiving any money in your bank account on Sunday, even though the invoice will be recorded as paid and you should be receiving payment on Sunday by 5 pm. You will be getting money into your bank account by 18th September Monday by 5 pm.

Upcoming Bank Holidays

Date	Day	Holiday
19 September 2023	Tuesday	Ganesh Chaturthi/Samvatsari (Chaturthi Paksha)
28 September 2023	Thursday	Eid-E-Milad/Eid-e-Meeladunnabi - (Prophet Mohammad's Birthday) (Bara Vafat)
01 October 2023	Sunday	Mahatma Gandhi Jayanti
24 October 2023	Tuesday	Dussehra/Dusshera (Vijaya Dashmi)/Durga Puja
14 November 2023	Tuesday	Diwali (Bali Pratipada)/Deepavali/Vikram Samvant New Year Day/Laxmi Puja
27 November 2023	Monday	Guru Nanak Jayanti/Karthika Purnima/Rahas Purnima
25 December 2023	Monday	Christmas