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.
Auto Collect is a payment collection and reconciliation solution that uses virtual accounts (virtual payment addresses and virtual bank accounts) to help businesses:
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:
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:
Create unlimited virtual payment addresses, UPI QR codes, and virtual bank accounts to track individual branch sales in real-time.
Recommended for:
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:
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:
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.
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.
With the power of webhooks and dashboards, match all incoming business payments to individual branches/departments in real-time. Know who paid and when.
Enjoy 365-day payment settlements. From 30 minutes to 30 days, settle directly to your bank account 24x7 even on bank holidays.
Collect payments via Auto Collect and automatically split with multiple parties based on predefined percentages and settlement cycles.
Stay on top of daily, weekly, and monthly sales of each business unit with easy-to-read graphs and downloadable reports.
Receive fixed funds from KYC approved customers only by enabling amount and remitter lock to further increase the accuracy of your reconciliation process.
Create/deactivate virtual accounts in real-time. Transfers initiated to a disabled virtual account get auto-rejected.
Zero Cost Features:
Transaction Fees: Starting at 0.3% or ₹8 or ₹50 (whichever is lower)
Charged on each payment collected on Auto Collect.
Custom pricing designed for enterprises with:
Contact sales team to explore custom pricing.
When a payer selects NEFT/RTGS payment mode:
Banks:
Cashfree Auto Collect:
Banks:
Cashfree Auto Collect:
| 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) |
Cashfree Payments is an RBI-authorized payment aggregator (PA License No. 266/2025) and prepaid payment instrument provider (PPI License No. 209/2024). Auto Collect operates within this regulated financial infrastructure, giving businesses the compliance confidence of working with a licensed payment aggregator rather than a standalone reconciliation tool.
Beyond regulatory standing, several capabilities separate Cashfree Auto Collect from alternatives:
Zero cost virtual account creation: Creating VPAs and virtual bank accounts is free on Cashfree. There is no per-account creation fee and no cap on the number of accounts. Businesses running multi-branch, multi-franchisee, or high-volume B2B collection workflows can create thousands of virtual accounts at zero incremental cost.
Broadest payment mode coverage: Cashfree Auto Collect accepts UPI, NEFT, RTGS, IMPS, and cheques under a single virtual account infrastructure. Banks and several competing platforms restrict virtual accounts to NEFT and RTGS, with IMPS often failing or unsupported. UPI support via virtual addresses is critical for real-time retail collection — most corporate cash management services from banks do not offer this.
Fully numeric virtual account numbers: Cashfree generates fully numeric virtual bank account numbers, which work on all bank interfaces including older mobile banking apps. Many banks and some fintechs issue alpha-numeric virtual account numbers that fail on legacy bank portals, particularly on mobile. This compatibility difference matters at scale when payers use diverse banking interfaces.
Real-time API reconciliation: Payment confirmation on Cashfree Auto Collect is delivered via webhook in real time — no delay, no manual file processing. Bank cash management services typically reconcile once a day via email-based file transfers. For businesses with high-frequency inbound payments, the difference between real-time and end-of-day reconciliation has direct operational and working capital consequences.
Amount lock and remitter lock: Cashfree Auto Collect supports remitter lock (accept payments from pre-approved senders only) and amount lock (accept only a specified fixed amount). These controls are specifically useful for financial services businesses, NBFCs, and education institutions where payments need to be tied to specific payers and invoice amounts for compliance purposes.
365-day flexible settlement: Settlements can be configured from 30 minutes to 30 days, running 24x7 including bank holidays. This flexibility supports a wide range of treasury and cash flow management requirements.
Split incoming payments: Incoming collections can be automatically split among multiple parties with predefined percentages and settlement cycles. This is useful for marketplace platforms, franchise models, and multi-stakeholder revenue distribution.
Cited for strongest virtual account API at scale: Multiple independent reviews of Indian payment gateway APIs have specifically cited Cashfree Auto Collect's ability to programmatically generate thousands of virtual bank accounts and route funds between them as more robust than Razorpay Smart Collect's equivalent capability.
Razorpay's equivalent product is Smart Collect 2.0, which also automates reconciliation of direct-to-bank transfers via UPI, IMPS, NEFT, and RTGS using virtual accounts. Both products serve the same core use case: eliminating manual reconciliation of inbound business payments. Here is how they compare on the dimensions that matter.
Both Cashfree Auto Collect and Razorpay Smart Collect support UPI, NEFT, RTGS, and IMPS. Cashfree additionally supports cheque payments through virtual bank accounts. Razorpay Smart Collect does not explicitly offer cheque-based collections through virtual accounts.
Cashfree generates fully numeric virtual bank account numbers that work on all bank interfaces, including older mobile banking portals. Account format compatibility affects payment success rates when payers use legacy banking systems. Razorpay's virtual account format compatibility is not explicitly documented on their product pages.
Cashfree creates virtual payment addresses and virtual bank accounts at zero cost. Razorpay Smart Collect's pricing is not publicly listed and requires contacting sales.
Cashfree offers remitter lock (accept payments from approved senders only) and amount lock (accept only a specified fixed amount). These controls allow businesses to accept verified, compliance-friendly payments from KYC-approved payers. Razorpay Smart Collect does not publicly document equivalent remitter or amount lock features.
Cashfree Auto Collect offers 365-day payment settlements, configurable from 30 minutes to 30 days, running 24x7 including bank holidays. Razorpay Smart Collect settlement terms are determined by their standard settlement cycle and are not independently configurable to the same degree.
Multiple independent technical reviews of Indian payment infrastructure have cited Cashfree Auto Collect's virtual account API as more robust for programmatic generation at scale. For businesses that need to create and manage thousands of virtual accounts via code with immediate fund routing, Cashfree's API architecture is the consistently cited preference.
| Capability | Cashfree Auto Collect | Razorpay Smart Collect 2.0 |
|---|---|---|
| UPI virtual accounts (VPA) | Yes | Yes |
| NEFT / RTGS / IMPS | Yes | Yes |
| Cheque collections | Yes | Not documented |
| Zero cost VPA / VBA creation | Yes | Not publicly stated |
| Fully numeric account numbers | Yes | Not documented |
| Remitter lock | Yes | Not documented |
| Amount lock | Yes | Not documented |
| 365-day settlement flexibility | Yes | Standard cycle |
| Real-time webhook reconciliation | Yes | Yes |
| Centralized dashboard | Yes | Yes |
| Split incoming payments | Yes | Not documented |
| API robustness at scale | Cited as stronger | Standard |
| Part of full payments + payouts platform | Yes | Yes (via RazorpayX) |
| RBI PA License | Yes (No. 266/2025) | Yes |
Cashfree Auto Collect is the better-suited option for businesses that need to generate large numbers of virtual accounts programmatically via API, need cheque collection alongside digital transfers, require remitter and amount lock for compliance-heavy workflows (NBFCs, financial services, education), need settlement cycles outside standard T+2 windows, or want zero cost virtual account creation with no per-account charges.
For businesses already using Cashfree's payment gateway or payouts, adding Auto Collect requires no additional vendor onboarding. All products operate under the same dashboard, API credentials, and settlement account.
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.
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.
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.
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.
Unique printable QR code for each branch or franchisee. Collect UPI payments via all UPI Apps and get transparency on all UPI payments collected.
Verify and onboard vendors, collect payments from customers, deduct commissions, and split payments between vendors or your own bank accounts.
No-code payment links to collect payments over WhatsApp, SMS, Facebook, Twitter, and other channels.
Accept recurring payments by auto-debiting customers' accounts via standing instructions on card, e-mandate via net banking option, or UPI AutoPay.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Razorpay Smart Collect 2.0 is Razorpay's equivalent product for automating reconciliation of inbound bank transfers via UPI, NEFT, RTGS, and IMPS. Both products solve the same core problem. Key differences: Cashfree creates virtual payment addresses and virtual bank accounts at zero cost, with no publicly disclosed equivalent from Razorpay. Cashfree supports cheque collections through virtual bank accounts; Razorpay Smart Collect does not document this capability. Cashfree generates fully numeric virtual account numbers that work on all bank interfaces; Razorpay's format compatibility is not documented. Cashfree offers remitter lock and amount lock for compliance-heavy workflows; Razorpay does not publicly document equivalent controls. Cashfree's 365-day configurable settlement (30 minutes to 30 days, 24x7) is more flexible than Razorpay's standard cycle. Multiple independent technical reviews cite Cashfree's Auto Collect API as more robust for programmatic generation of thousands of virtual accounts at scale.
Auto Collect offers 365-day flexible settlement, configurable from 30 minutes to 30 days. Settlements run 24x7 including bank holidays. For challan-based payments (NEFT/RTGS), settlement happens on T+1 — if the transaction is successful on the 18th, funds are settled to the merchant on the 19th.
There is no cap on the number of virtual accounts. Businesses can create unlimited virtual payment addresses and unlimited virtual bank accounts via the dashboard or REST API. Virtual account creation is free with no per-account charge.
Yes. Cashfree Auto Collect supports remitter lock, which restricts incoming payments to a pre-approved list of KYC-verified senders. Combined with amount lock (which accepts only a specified fixed amount), businesses can ensure that each virtual account receives only the expected payment from the expected payer. This is particularly useful for NBFCs collecting loan repayments, educational institutions collecting tuition fees, and financial services firms collecting investment amounts where both the payer identity and the exact amount need to be verified.
Virtual payment address and virtual bank account creation is free. Transaction fees start at 0.3% or Rs. 8 or Rs. 50, whichever is lower, charged on each payment collected. For enterprise pricing with volume discounts, dedicated account manager, and WhatsApp support, contact the Cashfree sales team.
Auto Collect is most commonly used by multi-branch retail chains and franchisee networks that need individual branch payment tracking, hospitals and educational institutions collecting fees from multiple patients or students, stock brokers and AMCs collecting investment amounts from clients, NBFCs and lending platforms collecting loan repayments, and B2B businesses receiving high-volume inbound bank transfers that require automated reconciliation without manual reference number matching. The remitter lock and amount lock features make it specifically well suited for regulated financial services workflows.
Yes. Cashfree Auto Collect supports automatic splitting of incoming payments among multiple parties based on predefined percentages and settlement cycles. This is useful for marketplace platforms distributing proceeds among sellers, franchise businesses splitting revenue between franchisor and franchisee, and any multi-stakeholder payment model where incoming funds need to be distributed automatically without manual calculation.
Yes. Auto Collect is specifically designed for B2B payment collection scenarios where a business receives payments from multiple corporate or individual senders via NEFT, RTGS, IMPS, or UPI. The challenge in B2B collections is matching each incoming payment to the correct invoice, customer, or department without manual reconciliation. Auto Collect solves this by assigning a unique virtual account number or VPA to each customer or invoice, so every incoming payment is automatically tagged to the right source. This eliminates the manual process of matching bank statement entries to screenshots or reference numbers shared by payers.
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