This guide explains how payment gateway settlements work with Cashfree Payments, including settlement types, tracking methods, and reconciliation processes.
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.
Cashfree offers two distinct settlement options to meet different business needs:
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.
The Instant Settlement cycle in Cashfree lets merchants get access to their funds in 15 minutes. Merchants can make use of the settled funds for disbursals to vendors and other partners. These settlements are processed even on bank holidays.
The typical settlement process in Cashfree follows these steps:
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.
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
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.
Each entry in the settlement report contains the following information:
| Information Field | Description |
|---|---|
| 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 |
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.
| 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 |
*Settlement cycle is subject to bank approval and can vary based on transaction type, business category/model, risk parameters and other factors.
Cashfree Payments provides:
Businesses can collect customer payments, make payouts, manage international payments and more by creating an account or contacting Cashfree experts to explore custom solutions.
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.
RBI Authorised Payment Aggregator License: Certificate of Authorisation No. 266/2025
RBI Authorised Prepaid Payment Instrument (PPI) Provider: Certificate of Authorisation No. 209/2024
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.
Cashfree offers two types of settlements:
Standard Settlements: T+2* days settlement cycle where T is the date of the transaction. Settlements happen only on bank working days.
Instant Settlements: Merchants get access to their funds in 15 minutes. These settlements are processed even on bank holidays and can be used for disbursals to vendors and other partners.
The reports module in PG dashboard lets you download the settlements report on a daily or monthly basis for reconciliation. Each settlement contains the list of transactions included in the settlement cycle with detailed information including unique transaction reference number, individual transaction date and time, net settlement amount, TDR charges, transaction amount, and settlement date.