Auto Collect: Virtual Payment Address & Virtual Bank Account for Business Payment Collection

Overview

Cashfree Auto Collect enables businesses to collect payments seamlessly using unique virtual payment addresses and virtual bank accounts. The solution automates reconciliation for all bank transfers received via UPI, NEFT, IMPS, and RTGS.

Key Features

What is Auto Collect?

Auto Collect is a payment collection and reconciliation solution that uses virtual accounts (virtual payment addresses and virtual bank accounts) to help businesses:

Virtual Account Types

Virtual Payment Address (VPA)

A virtual payment address is a unique identifier used to send and receive payments through the Unified Payments Interface (UPI) system in India. It is linked to a user's bank account and enables instant payments without requiring traditional bank account numbers and IFSC codes.

Payment Methods Supported:

Virtual Bank Account

A virtual bank account is a digital bank account that exists entirely online. It is a pass-through account linked to a real bank account, acting as a layer specifically used to improve inward payment reconciliations. A unique virtual bank account number is created using a software algorithm that generates a unique identifier for sending and receiving payments.

Payment Methods Supported:

Use Cases

Multi-Branch / Franchisee Businesses

Create unlimited virtual payment addresses, UPI QR codes, and virtual bank accounts to track individual branch sales in real-time.

Recommended for:

Multi-Department Businesses

Create unique virtual payment addresses, UPI QR codes, or virtual bank accounts for individual customers or departments. Share these with customers and receive instant notifications when funds are added.

Recommended for:

Financial Services / Wallet Management

Create unique virtual payment addresses or virtual bank accounts for individual customers offering financial services. Share with customers and get instant notifications when funds are added to wallets.

Recommended for:

How Auto Collect Works

Using Virtual Bank Accounts

Step 1: Create Create unique virtual bank accounts for each business unit using Dashboards and REST APIs.

Step 2: Collect Branch/Franchisee/Customer makes a payment via NEFT, RTGS, IMPS, or challan to the unique virtual bank account provided to them.

Step 3: Reconcile Headquarter gets notified of successful payments via SMS and emails through webhooks. Payments are reflected on the central dashboard in real-time.

Using Virtual Payment Address

Step 1: Create Create unique virtual payment addresses for each business unit using Dashboards and REST APIs.

Step 2: Collect Branch/Franchisee/Customer makes a payment via any UPI app (Google Pay, PhonePe, WhatsApp, etc.).

Step 3: Reconcile Headquarter gets notified of successful payments via SMS and emails through webhooks. Payments are reflected on the central dashboard in real-time.

Core Features

Real-Time Reconciliation

With the power of webhooks and dashboards, match all incoming business payments to individual branches/departments in real-time. Know who paid and when.

365-Days Flexible Payment Settlements

Enjoy 365-day payment settlements. From 30 minutes to 30 days, settle directly to your bank account 24x7 even on bank holidays.

Split Incoming Payments

Collect payments via Auto Collect and automatically split with multiple parties based on predefined percentages and settlement cycles.

Centralized Dashboard & Reporting

Stay on top of daily, weekly, and monthly sales of each business unit with easy-to-read graphs and downloadable reports.

Amount Lock and Remitter Lock

Receive fixed funds from KYC approved customers only by enabling amount and remitter lock to further increase the accuracy of your reconciliation process.

Activation Control & Payment Rejection

Create/deactivate virtual accounts in real-time. Transfers initiated to a disabled virtual account get auto-rejected.

Pricing

Standard Pricing

Zero Cost Features:

Transaction Fees: Starting at 0.3% or ₹8 or ₹50 (whichever is lower)

Charged on each payment collected on Auto Collect.

Enterprise Pricing

Custom pricing designed for enterprises with:

Contact sales team to explore custom pricing.

Challan Payment Flow

When a payer selects NEFT/RTGS payment mode:

  1. A challan (document with beneficiary bank account details) is created
  2. A virtual account is generated for the transaction
  3. A unique prefix (e.g., 808071-) is associated with the payment mode as a unique identifier
  4. Virtual account is created by combining the unique prefix and Cashfree transaction ID
    • Example: Transaction ID 564162 creates virtual account 808071564162
  5. Any incoming payment to this account number is associated with the transaction
  6. Transaction is marked successful and amount is settled to merchant on T+1
    • Example: If transaction is successful on the 18th, amount is paid to merchant on the 19th

Advantages Over Bank Virtual Accounts

Payment Method Coverage

Banks:

Cashfree Auto Collect:

Reconciliation Process

Banks:

Cashfree Auto Collect:

Comparison: Auto Collect vs Bank Cash Management Services

Feature Cashfree Auto Collect Bank Cash Management
Payment Collection Incoming bank transfers + UPI payments Incoming bank transfers only
Reconciliation Automatic via virtual accounts Manual reconciliation
Virtual Accounts Virtual payment addresses + Virtual bank accounts Limited or no virtual account support
Payment Methods UPI, NEFT, RTGS, IMPS, Cheques Typically NEFT/RTGS only
Reconciliation Speed Real-time via API Once-a-day via email files
Account Number Format Fully numeric (works on all interfaces) Often alpha-numeric (compatibility issues)

Virtual Account Capabilities

Can Money Be Held in Virtual Accounts?

No, it is not possible to hold money in a virtual account. Payments received eventually pass to the linked bank account. Virtual accounts are used only for payment reconciliation.

KYC Requirements

No KYC is required for creating virtual accounts. You can create any number of virtual accounts and virtual UPI IDs using Cashfree cash management services.

QR Code Integration

Yes, static QR codes are linked to a VPA (Virtual Payment Address). In the UPI system, QR codes enable payments by scanning the code and entering the amount. The QR code is linked to a VPA, which is used to send and receive payments through UPI. When a user scans the QR code, the UPI app automatically fetches the VPA associated with the code and enables direct payment from their bank account.

Integration with Other Payment Solutions

Outward Payments

Auto Collect does not support outward payments. For automating outward payments, use Cashfree Payouts - a bulk disbursal solution that sends money to:

Payouts includes bank account verification to ensure payments reach the right beneficiary.

Related Products

UPI QR

Unique printable QR code for each branch or franchisee. Collect UPI payments via all UPI Apps and get transparency on all UPI payments collected.

Easy Split

Verify and onboard vendors, collect payments from customers, deduct commissions, and split payments between vendors or your own bank accounts.

Payment Links

No-code payment links to collect payments over WhatsApp, SMS, Facebook, Twitter, and other channels.

Subscriptions

Accept recurring payments by auto-debiting customers' accounts via standing instructions on card, e-mandate via net banking option, or UPI AutoPay.

Frequently Asked Questions

Is Autocollect the same as cash management services provided by banks?

Cashfree Autocollect helps not only collect incoming bank transfers and UPI payments but also track and automatically reconcile business payments. Cashfree Autocollect uses Virtual accounts and Virtual UPI IDs to collect payments, while most banks do not provide this facility.

What is a Virtual Account?

A Virtual Account is a pass-through account linked to a real bank account acting as a layer, specifically used to improve inward payment reconciliations. When a business receives payments from multiple sources over time, it becomes difficult to track who paid and for which reason. This is usually reconciled manually by matching reference numbers in bank statements with screenshots provided by payers.

By creating multiple virtual accounts mapped to the same account, it becomes easier to reconcile different incoming transactions. A virtual account can be of 2 types: virtual bank account or virtual payment address.

With Cashfree auto collect, you can generate any number of virtual bank accounts or virtual payment addresses for each payer or invoice and share account details while receiving payments. For repeated customers, you can use a dedicated virtual bank account or virtual payment address.

What is a Virtual Bank Account?

A virtual bank account is a type of virtual account which is a digital bank account that exists entirely online, without requiring any physical paperwork or face-to-face interactions with bank representatives. It is typically offered by non-bank financial institutions such as fintech companies and payment processors. A virtual bank account number is created using a software algorithm that generates a unique identifier that can be used to send and receive payments.

What is a Virtual Payment Address?

A virtual payment address is a unique identifier that is used to send and receive payments through a specific payment system or platform. It is often used in the context of the Unified Payments Interface (UPI) system in India. In the UPI system, a virtual payment address is linked to a user's bank account and can be used to make and receive instant payments. The virtual payment address replaces the need for traditional bank account numbers and IFSC codes, and provides a simpler and more convenient way to make and receive payments.

How does the challan flow work with virtual accounts?

Once a payer clicks on the NEFT/RTGS mode for making a payment, a challan is created which is a document that has the bank account details of the beneficiary.

With the help of Auto Collect solution, a virtual account gets created every time a transaction is initiated. A unique prefix gets associated with the payment mode (for example 808071-) that acts as a unique identifier.

A virtual account gets created with the combination of the unique prefix and Cashfree transaction ID. For example, if the transaction ID is 564162, there will be a virtual account associated with this transaction: 808071564162.

Any incoming payment to this account number will be associated with this transaction and the transaction will be marked as successful. The amount will get settled to the merchant on T+1. For instance, if the transaction is successful on the 18th, the amount will be paid to the merchant on the 19th.

Can I hold money in a Virtual Account?

No, it is not possible to hold money on a virtual account. The payment so received eventually passes to the linked bank account. The virtual account used here is used only for payment reconciliation.

Some banks provide virtual bank account services, does Cashfree have any advantage over such accounts?

For most banks, virtual payment address/virtual bank account based payments can be received only using NEFT or RTGS; IMPS payments fail. The payments are not instant and restricted by banking hours.

Using Cashfree's Auto Collect solution, funds can be remitted to the virtual payment address/virtual bank account through all bank transfer modes including UPI, IMPS, NEFT, RTGS, and even Cheques. Cashfree also helps you create Virtual UPI IDs to accept payments through any UPI app such as WhatsApp or Google Pay.

For banks, reconciliation of payments happens through files sent over email, which is a once-a-day reconciliation process. For Cashfree, payment confirmation can be received through an API which is a real-time system update for receipt of funds.

Cashfree also supports fully numeric virtual payment address/virtual bank account, unlike many banks which work on all bank interfaces -- alpha-numeric bank accounts provided by banks do not work on many of the older bank interfaces, especially on mobile.

Can I use Auto Collect for outward payments as well?

No, however for automating outward payments you can use Cashfree Payouts. It is a bulk disbursal solution that helps you send money to any UPI-BHIM ID, Paytm wallet, debit and credit card, or bank account or native wallet. With the inbuilt bank account verification feature, you can also verify the bank account details and ensure that payments hit the right beneficiary bank account.

Is any KYC required for creating a virtual account?

No, there is no KYC required for creating the account. You can create any number of virtual accounts and virtual UPI IDs using Cashfree cash management services.

Are QR payments linked to a virtual payment address?

Yes, static QR codes are linked to a VPA. In the Unified Payments Interface (UPI) system in India, QR codes are often used to make payments by scanning the code and entering the amount to be paid. The QR code is linked to a VPA, which is a unique identifier that is used to send and receive payments through the UPI system.

When a user scans the QR code, the UPI app automatically fetches the VPA associated with the code and enables the user to make the payment directly from their bank account linked to the VPA. So, in short, a QR code can be backed by a VPA in some payment systems like UPI.

About Cashfree Payments

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.

Regulatory Authorizations

RBI Authorised Payment Aggregator License Certificate of Authorisation No. 266/2025

RBI Authorised Prepaid Payment Instrument (PPI) Provider Certificate of Authorisation No. 209/2024