Capture and Refund Settings

Configure auto-refund settings either from the Razorpay Dashboard or using APIs.

Available in🇮🇳 India

Use Optimizer to accept online payments from your customers. Check the payment states flow and configurations to capture and refund customer payments.

Optimizer Payment States Flow

When a customer makes a payment, it usually flows through the following states:

States	Description
created	This is the initial step wherein the customer submits the payment information and it is sent to Optimizer. The payment has not been processed at this stage.
authorized	An authorisation is performed when the bank successfully authenticates the customer’s payment details. The money is deducted from the customer’s account, but is not settled to your account until the payment is captured. Any payment in this state is auto-refunded to the customer if not captured within 3 days of creation.
captured	When the payment status changes to captured, the payment is verified as complete by Optimizer.
refunded	You can refund the payments that are successfully captured at your end. The amount is reversed to the customer’s account.
failed	Any unsuccessful transaction is marked as failed and the customer must retry the payment.

The following state diagram depicts the flow of money through the payment states:

1. By default, once your customer completes a payment, it is automatically moved to the captured state. However, in case of delayed authorisation, the payment can remain in the authorized state.
2. External factors such as network issues or problems with the payment provider can cause delays in Optimizer receiving payment status. In such cases, Optimizer polls the APIs intermittently for 3 days to check the status. If the payment status is successfully received during this time, the payment is moved to the authorized state. Know more about late authorisation.
3. The system ensures that all payments in the authorized state are moved to the captured state within 3 days of their creation. This is mandatory because payments that are not captured within this time period will be refunded automatically to customers.

You can configure Payment Capture settings on the Dashboard. You can choose to:

• Auto-capture all payments
• Auto-capture with set timeouts

Handy Tips

Only a Razorpay account owner can configure payment capture settings on the Dashboard. Users with other roles are not allowed to configure this setting.

Option	Description
Auto-capture all payments	All payments authorized within 3 days from the time of creation are auto-captured.
Auto-capture timeouts	Allows you to define custom auto-capture timeout. The minimum value is 12 minutes. The maximum value (default) is 3 days.
Auto-refund speed	Payments in the authorized state are auto-refunded after the timeout. Available option is Normal Refund: The payment is refunded to your customer in 5-7 working days.

Auto-capture All Payments

Capture all authorized payments automatically. This eliminates the time and effort spent manually capturing payments.

Handy Tips

This is the default setting for all customers. If the payments are not captured within the selected time frame, they are automatically refunded.

Watch this video to see how to set up the Automatic Capture option for all payments.

To auto-capture all `authorized` payments:

1. Log in to the Dashboard.
2. Navigate to the Account & Settings → Capture and refund settings (under Payments and refunds section).
3. Click Change next to Automatic Capture.
4. Under Automatic Capture, click the drop-down and select the time period in the Capture all payments authorised within field. For example, 3 days.
5. Click Next.
6. Click Normal Speed and Save.

Auto-Capture with Custom Timeouts

Once the payment is created, you can:

• auto-capture payments that are authorized within a certain time period, and
• auto refund the payments that are authorized after that time period.

You can do this by setting up custom timeouts for automatic capture.

Auto-capture Timeout

Let us say you only want to auto-capture payments that are authorized within 3 days of creation, then select the following settings:

--- Capture Settings	Select Automatic Capture Automatic capture timeout = 3 days.
Payments auto-refunded	If payments are authorized after 3 days.

Handy Tips

If the payments are not captured within the selected time frame, they are automatically refunded.

Watch this video to see how to set up the Automatic Capture with Timeout option.

To auto-capture all `authorized` payments with timeout:

1. Log in to the Dashboard.
2. Navigate to the Account & Settings → Capture and refund settings (under Payments and refunds section).
3. Click Change next to Automatic Capture.
4. Under Automatic Capture, click the drop-down and select the time period in the Capture all payments authorised within field. For example, 3 days.
5. Click Next.
6. Select Refund Automatically option and click Next.
7. Click Normal Speed and Save.

Manual Capture Timeouts

Watch Out!

• Manual Capture settings only apply to payments processed via Razorpay.
• Optimizer will auto capture the payment if the payment is authorised within a certain time period.
• Any payment authorised after that time period (auto capture time period) will be auto refunded.
• Any manual capture time period set on the Dashboard will not apply to payments processed through payment providers other than Razorpay. Such payments will be automatically captured by default.

Ensuring that you reflect the correct information is crucial because downstream payment providers will mark the payment as successful and settle the amount to your account as per the settlement schedule, even if Optimizer waits for you to manually capture the payment.

Configure Payment Capture Settings Using Orders API

Capture values passed in the Orders API take precedence over the Payment Capture settings configured on the Dashboard. You can use this to change the capture settings for individual payments.

Related Information

• Orders API
• Payment States
• Refunds
• Manually capture payments using Capture API
• Manually capture payments from the Dashboard