Cashless payment is a payment system that is made or accepted without the use of physical cash, instead relying on electronic methods to conduct transactions.

Cashless payment methods include:

• E-wallets
• Mobile Banking Applications
• UPI System
• BHIM App
• Aadhaar Payment App

How Does Cashless Transaction Work?

A cashless transaction involves the electronic transfer of funds between parties. This process relies on a complex network of financial institutions, payment processors, and communication systems.

Here is the Step-by-Step Breakdown

1. Transaction Initiation

Customer Action

The customer initiates a transaction by presenting a payment card (physical or virtual), using a mobile wallet, or entering payment details online.

Data Capture

The point-of-sale (POS) terminal or online payment gateway captures the payment data, including card number, expiration date, CVV, and other relevant information.

2. Authorization Request

Message Generation

The POS or payment gateway generates an authorization request message, containing transaction details.

Message Transmission

The message is sent to the acquirer (the merchant’s bank) through a secure network.

3. Authorization Processing

Acquirer Processing

The acquirer validates the transaction data and forwards the request to the card issuer (the customer’s bank) through a card network (Visa, Mastercard, etc.).

Issuer Processing

The issuer verifies the cardholder’s account information, available funds, and fraud checks.
Authorization Response: The issuer sends an authorization response to the acquirer, indicating approval or decline.

4. Authorization Response and Transaction Completion

Response Transmission

The acquirer relays the authorization response to the POS or payment gateway.

Transaction Completion

If authorized, the transaction is completed, and a receipt or confirmation is generated.

5. Clearing and Settlement

Batch Processing

Transactions are typically batched and processed at the end of the day.

Funds Transfer

Funds are transferred between the acquirer and issuer through the card network.

Settlement

The acquirer settles the funds with the merchant, minus processing fees.

Types of Cashless Payment Methods

Here are some of the key cashless payment methods:

1. E-wallets

Electronic wallets, or e-wallets, are digital tools that store payment information and enable you to make transactions conveniently through your smartphones or computers.

Examples of E-wallets

An example of e-wallets includes:

• PayPal
• Google Pay
• Apple Pay

All these e-wallets offer a range of features that enhance both convenience and security.

Common Features of E-wallets

• These e-wallets allow you to link your bank accounts or cards and make payments with just a few taps or clicks.
• They often provide additional layers of security, such as two-factor authentication and encryption, to protect your financial information.
• With e-wallets, you can easily make cashless payments online or at physical stores, making transactions faster and hassle-free.

2. Mobile Banking Applications

Mobile banking applications provided by banks and financial institutions allow transactions directly from smartphones.

These apps offer a seamless experience for cashless payments.

You can link your bank accounts and make transfers or payments with just a few taps on your mobile devices.

3. UPI System

The UPI is a real-time payment system in India that enables instant money transfers between bank accounts by using mobile devices.

It provides a convenient and secure platform for individuals to send or receive money without the need for bank account details or IFSC (Indian Financial System Code) codes. 

4. BHIM App

The BHIM (Bharat Interface for Money) application (app) is a UPI-based payment application developed by the National Payments Corporation of India (NPCI).

It offers a user-friendly interface and simplifies digital transactions in India.

The BHIM app lets users link multiple bank accounts and make payments using their registered mobile numbers or virtual payment addresses. 

5. Aadhaar Payment App

The Aadhar Payment app is a unique digital payment solution that allows transactions using Aadhar numbers linked to your bank accounts without additional authentication methods.

If you do not have a smartphone or debit/credit card, the app offers a USSD (unstructured supplementary service data) based interface that can be accessed through basic feature phones.

It integrates with the Aadhar database, which contains biometric and demographic information of Indians. You can make payments by simply providing your Aadhar number

Overall, the Aadhar Payment App provides a convenient and inclusive way to make digital payments, regardless of the access to smartphones or traditional payment methods.

How To Set Up Cashless Payment Systems for Your Businesses?

Below are the pointers that will help you set up a cashless payment system for your business:

STEP 1: Research and Choose Payment Methods

It is vital to research and choose suitable payment methods. Explore popular options like mobile wallets, UPI, debit/credit cards, and online banking options. Consider your customers’ needs and the ease of use for both you and them.

STEP 2: Select a Payment Processor

Choose a reliable payment processor that offers secure transactions and excellent customer support. Before deciding, compare transaction fees, ease of use, and compatibility with your business.

STEP 3: Upgrade POS System

Ensure that your physical store’s point of sale (POS) system supports cashless payments. If necessary, upgrade or replace the POS system to accept digital payments seamlessly.

STEP 4: Integrate Online Payment Gateways

If you operate online, integrate secure payment gateways into your website or e-commerce platform. This will provide a seamless checkout process for online customers.

STEP 5: Train Your Staff

Train your staff on how to process cashless payments and address customer queries. Make sure they are familiar with the payment methods.

STEP 6: Ensure Security Measures

Implement security measures to protect customer data and your business. Use encryption technology, secure servers, and comply with data protection regulations.

STEP 7: Provide Electronic Receipts

Ensure that customers receive electronic receipts or confirmations for their transactions. This will help them track their purchases and reconcile their accounts.

STEP 8: Monitor Transactions

Monitor cashless transactions regularly for irregularities or fraudulent activities. Address any issues promptly to maintain trust with customers.

STEP 9: Offer Customer Support

Provide clear channels for customer support related to payment issues. Make it easy for customers to reach out and get assistance when needed.

STEP 10: Comply with Regulations

Ensure that your cashless payment systems comply with local and international regulations. Stay updated on any legal changes related to cashless transactions.

How Cashless Payment Systems Benefit Customers?

• Cashless payment systems offer customers convenience and security through digital transactions.
• Cashless payments eliminate the need to carry physical cash.
• One of the critical benefits of cashless transactions is enhanced security. Payment gateways use encryption and authentication methods to protect your financial data, ensuring secure transactions.
• Many merchants provide exclusive deals in the form of discounts and offers for customers who pay digitally, incentivizing the adoption of cashless transactions.
• Additionally, cashless payments provide flexibility to make transactions anytime and anywhere using mobile phones, tablets, or computers.

How Cashless Payment Systems Benefit Businesses?

Below are some of the key advantages of cashless transactions:

1. Convenience in Transactions

Cashless payments provide convenience to businesses by offering various payment methods such as mobile wallets, contactless cards, and online banking services. With these options, you can easily make payments without carrying physical cash.

This simplifies the transaction process and reduces waiting time at checkout counters, improving customer satisfaction. Additionally, digital receipts and transaction history enable you to track your expenses, thereby efficiently managing finances.

2. Security Measures

One of the critical advantages of cashless payment systems is the implementation of robust security measures. These systems utilise encryption protocols and multi-factor authentication to ensure secure and fraud-free transactions.

Secure payment gateways protect sensitive customer information, instilling trust among users.

Furthermore, continuous advancements in cybersecurity technologies protect businesses against evolving threats and cyber-attacks.

3. Discounts and Offers

Cashless transactions offer businesses various discounts and offers. Companies provide cashback rewards, loyalty points, and exclusive deals to encourage digital payments.

These incentives help attract new customers, retain existing ones, and promote specific products or services. Additionally, customer loyalty programs foster repeated purchases and establish long-term relationships between businesses and customers.

Disadvantages of Cashless Payments

Here are some of the key disadvantages of cashless payments:

1. Technology Dependency and Internet Access Challenges

Cashless payments rely heavily on technology, including stable internet connections and electronic devices. Challenges arise when there are connectivity issues or a need for access to the internet, hindering seamless payment processes.

2. Fraud and Hacking Risks in Digital Transactions

Digital transactions are susceptible to fraud and hacking. Cybercriminals use techniques like phishing, malware, and data breaches to exploit vulnerabilities, impacting businesses and customers.

3. Privacy Concerns in Cashless Interactions

Privacy concerns arise in cashless interactions due to data privacy issues and surveillance. Secure handling of customer information becomes crucial to protect sensitive data from unauthorised access.

4. Implementation Challenges for Small Businesses

Small businesses face implementation challenges with cashless payments, including setup costs, staff training, and rapidly evolving technologies that require regular updates and maintenance.

FAQs

1. What is the most popular cashless payment?

The most popular cashless payment method in India is the UPI. It allows users to make instant payments using mobile phones directly from their bank accounts. 

2. When did cashless payments start?

Digital payments in India started gaining traction after the 2016 demonetization drives. The government’s push towards a cashless economy led to the rapid adoption of various electronic payment methods. 

3. What are the risks of cashless payments?

Some common risks include fraud and security risks, technical glitches, dependency on technology, and privacy concerns, among others.

4. What is the future of cashless payments?

The future of cashless payments in India looks promising. With initiatives like Digital India and increasing smartphone penetration, more people are embracing digital payment. 

5. Is cashless payment safer?

Yes, cashless payments are generally safer as they reduce the risk of theft and fraud and offer secure transaction methods through encryption and authentication processes.

The post What are Cashless Payments? Methods, How it Works, and Benefits appeared first on Razorpay Learn.

Mass payment is a streamlined financial process in which businesses can make payments to a large group of beneficiaries in a single transaction, eliminating the need to manually process each payment. This efficient solution simplifies tasks such as payroll, vendor payments, affiliate commissions, and more.

This payment method is widely used by businesses to automate recurring payments and reduce manual tasks. Businesses can enhance their operational efficiency and effectively manage their financial transactions by implementing mass payment solutions like bulk vendor payments, bulk payout links, and payment pages in batches.

How Mass Payments Work?

Mass payment is a process designed to facilitate the distribution of funds to multiple recipients efficiently and accurately. Here’s a breakdown of how it works:

1. Setting Up a Mass Payment System:

• Choose a Payment Provider: Businesses must first select a mass payment service provider or platform that suits their needs. Popular providers include Razorpay, PayPal, Stripe, and specialized mass payment platforms.
• Integration: Integrate the mass payment system with your existing financial software or platform. This can involve API integrations or using the provider’s dashboard for manual input.

2. Preparing Payment Details:

• Collect Recipient Information: Gather necessary details from recipients, including names, payment amounts, and payment methods (e.g., bank account details, email addresses for e-wallets).
• Create Payment Batch: Compile the payment information into a batch, often using a spreadsheet or the provider’s template. Ensure all data is accurate to avoid payment errors.

3. Executing the Payment:

• Upload Payment Batch: Upload the compiled batch file to the mass payment platform. This can typically be done through a secure online portal.
• Review and Approve: Review the payment details for accuracy. Most platforms allow a final check before processing. Approve the batch for processing.

4. Processing and Disbursement:

• Processing: Once approved, the mass payment provider processes the payments. This involves transferring funds from the business’s account to the recipients.
• Notifications: Recipients may receive notifications of the payment via email or SMS, depending on the chosen method.

5. Monitoring and Reporting:

• Track Payments: Businesses can track the status of each payment through the provider’s dashboard. This allows for monitoring successful transactions and identifying any issues.
• Generate Reports: Most mass payment platforms offer reporting features to generate detailed reports on payment batches, helping with financial reconciliation and record-keeping.

6. Security and Compliance:

• Data Security: Ensure that the payment provider uses robust security measures to protect sensitive financial data.
• Compliance: Adhere to regulatory requirements, such as AML (Anti-Money Laundering) and KYC (Know Your Customer) protocols, to ensure legal compliance.

Real-world Applications of Mass Payments

Mass payments have revolutionized financial operations across various sectors. Key use cases include:

• Payroll: Efficient disbursement of salaries and wages to employees, ensuring timely compensation.
• Vendor payments: Streamlined settlement of invoices with suppliers and contractors, optimizing cash flow.
• Affiliate commissions: Accurate and swift distribution of affiliate earnings, fostering strong partnerships.
• Customer refunds and rebates: Quick processing of refunds or rebates, enhancing customer satisfaction.

These applications demonstrate the versatility and efficiency of mass payments in modern business operations.

Benefits of Mass Payment

Mass payments offer several benefits to businesses, streamlining the payment process and providing efficiency, security, cost savings, global reach, enhanced monitoring, and better relationships.

Efficient and Time-saving

One of the key advantages of mass payments is their ability to save time and make the payment process more efficient for businesses. With mass payments, businesses can make multiple transactions simultaneously with just a few clicks. This eliminates the need to process individual transactions manually, saving valuable time and resources.

Automation plays a crucial role in ensuring efficiency in mass payments. Businesses can automate the entire payment process without manual intervention through batch processing. This significantly reduces the chances of errors during manual data entry or transfer. 

For example, imagine a business needing to pay affiliate commissions to multiple partners. With mass payments, the business can upload a single file containing the necessary payment details and execute all the transactions simultaneously. This saves time and ensures accuracy and precision in payment processing.

Secure

Security is a top priority for financial transactions, and mass payment systems are designed with robust security measures such as PCI compliance to protect sensitive data. These systems utilise encryption techniques to secure data transmission between parties involved in the transaction. Additionally, they incorporate multi-factor authentication methods to ensure that only authorised individuals can initiate or approve payments.

Mass payment solutions also provide secure APIs (Application Programming Interfaces) that allow businesses to integrate their existing systems easily. This ensures customer information remains safe throughout the payment process, which instils confidence among businesses and recipients.

Reduces Expenses

Another significant benefit of mass payments is cost savings for businesses. By eliminating the need for individual transactions, businesses can save on transaction fees and processing costs associated with each payment. This becomes particularly evident when a large volume of payments is involved.

For example, consider a business that needs to pay salaries to its employees. Instead of processing each payment individually, the business can use mass payment solutions to execute all the transactions simultaneously, reducing transaction costs significantly. 

Global

Mass payment systems are not limited to domestic transactions but facilitate international payments as well. Businesses can use these systems to pay vendors, freelancers, or partners anywhere. Mass payment solutions enable businesses to accept and process various currencies, eliminating the need for currency conversions and associated fees.

International payments are made accessible through mass payment solutions, enabling businesses to expand their reach globally without worrying about complex banking processes or international wire transfers. This opens up opportunities for businesses to collaborate with international partners and tap into new markets.

Enhanced Monitoring and Precision

Mass payment platforms offer robust tracking and reporting features allowing businesses to monitor real-time payment statuses. Businesses can track each transaction from initiation to completion, ensuring transparency. Real-time monitoring helps promptly identify any issues or delays, enabling businesses to take immediate action.

Better Relationships

Timely payments are crucial in building strong relationships with employees, vendors, and partners. Mass payments ensure that payments are processed quickly and efficiently, leading to timely disbursement of funds. This fosters trust and loyalty among recipients and strengthens relationships with key stakeholders.

Consistent and reliable mass payments contribute to building long-term business partnerships and collaborations. When businesses demonstrate their commitment to timely payments, it enhances their reputation and encourages others to work with them. This creates a positive cycle of trust and reliability, benefiting both parties involved.

Frequently Asked Questions

Q.1) Who uses mass pay?

Businesses of all sizes and industries use mass payment solutions. Whether you are a small start-up or a large enterprise, mass payments can streamline your payment processes and help you save time and effort. 

Q.2) How does mass payout work?

Mass payouts enable businesses to make multiple payments simultaneously, saving valuable time and resources. The process typically involves uploading a file containing the payment details, such as recipient names and bank account numbers, to a mass payment platform. The platform then processes these payments in batches, ensuring secure and efficient transactions. This automation eliminates the need for manual entry of individual payments, reducing errors and increasing efficiency.

Q.3) What is a mass pay account?

A mass pay account is an online payment solution that allows businesses to send funds to multiple recipients simultaneously. It provides a centralised platform for managing and executing mass payments securely and efficiently. Businesses can easily track their payment history, monitor transaction statuses, and streamline their financial operations using a mass pay account.

Q.4) How do you create a mass pay account?

To create a mass pay account, you can sign up with a reputable mass payment provider or explore options offered by your bank or financial institution. The process typically involves providing necessary business information, verifying your identity, and setting up payment preferences. Once your account is created, you can leverage the benefits of mass payments for your business.

Q.5) Can Small Businesses Benefit from Mass Payments?

Yes, small businesses can benefit significantly from mass payments by saving time, reducing transaction fees, improving payment accuracy, enhancing cash flow management, and fostering better relationships with employees and vendors. Automated processes also help streamline financial operations, making it easier to scale as the business grows.

The post What is Mass Payment? Understanding Benefits and How it Works appeared first on Razorpay Learn.

HDFC UPI Transaction Limit in 2024

The HDFC UPI transaction limit is up to Rs. 1 lakh per day or 20 transactions for both person-to-person and person-to-merchant transactions within 24 hours. If you’re a new UPI user, you can make transactions of a maximum of Rs. 5,000 for the first 24 hours for Android users and 72 hours for iPhone users after registration.

This limit remains the same across all UPI apps. If you reach your daily transaction limit, you must wait until the next day to make more transactions. You won’t be able to make additional transactions until then.

The table below explains the HDFC UPI transaction limits for personal and business needs:

Related Read: UPI Transaction Limit for Tax Payments

HDFC UPI Transaction Limit Per Month

HDFC Bank doesn’t impose a monthly limit on UPI transactions. However, to ensure smooth usage, you should adhere to the daily transaction limit. For the latest updates on these limits, regularly check HDFC Bank’s official website.

How to Increase UPI Limit in HDFC?

The daily UPI transaction limit cannot be manually increased; it is fixed. However, for specific purposes like educational fees or medical bills, the limit is higher, set at ₹5 lakh.

Related Read: What is the SBI UPI Transaction Limit Per Day?

HDFC UPI Transaction Charges

HDFC customers enjoy no charges for UPI transactions. However, for businesses with an HDFC account, new UPI guidelines impose a 1.1% interchange fee on merchant transactions over ₹2,000 made through Prepaid Payment Instruments (PPI).

Frequently Asked Questions (FAQs)

1. What is the default daily UPI limit for HDFC?

The default daily UPI limit for HDFC is ₹1 lakh or 20 transactions per day.

2. What is the maximum amount I can transfer in a single HDFC UPI transaction in 2024?

The maximum amount you can transfer in a single HDFC UPI transaction in 2024 is ₹1 lakh.

3. How to increase the UPI limit from 5000?

You cannot manually increase the initial ₹5,000 limit for new users; it automatically increases after 24 hours for Android users and 72 hours for iPhone users.

4. Can I increase my UPI limit using the HDFC mobile app?

No, you cannot increase your UPI limit using the HDFC mobile app; the limits are fixed.

5. If I need to transfer more than my daily limit, what are my options?

For transfers exceeding the daily limit, consider using NEFT, RTGS, or IMPS for larger amounts.

6. Is there a separate limit on the number of HDFC UPI transactions I can do per day?

Yes, you can perform up to 20 UPI transactions per day with HDFC.

7. What is the GPay per day limit in HDFC?

The daily limit for UPI transactions via GPay with HDFC is ₹1 lakh.

8. What is the limit of PhonePe per day in HDFC?

The daily limit for UPI transactions via PhonePe with HDFC is ₹1 lakh.

The post HDFC UPI Limit in 2024 – How to Increase UPI Limit in HDFC? appeared first on Razorpay Learn.

The daily transaction limit for UPI transactions on PhonePe for users in India is ₹1 Lakh.

In 24 hours you can send money only a maximum of 20 times on Phonepe. This means that you can transfer up to ₹1 lakh in a single day, which can be broken into a total of 20 transactions each day.

If you want to transfer more money or conduct a greater number of transactions, you will have to wait for the 24-hour time period to get over.

Note: As of November 2022, the NPCI proposed putting a 30% volume cap on all UPI apps. This is to ensure apps like Google Pay and PhonePe don’t have a monopoly of the UPI market. This means the Indian population cannot make unlimited transactions via their UPI apps.

PhonePe Transaction Limit Per Day for Different Banks

PhonePe is one of the most convenient and secure payment methods for digital transactions. To ensure smooth transactions and protect users from fraudulent activities, PhonePe has set transaction limits for various banking activities. Here is a detailed overview of the PhonePe daily limit for around 100 different banks across India.

What is The PhonePe Transaction Limit for Businesses?

Transaction limits are the maximum amount of money a business can transfer or receive in a day through PhonePe. A business can use PhonePe to receive or send a lot of money many times, and there’s no limit on how many transactions it can conduct. This is great for businesses because they can handle many transactions without restrictions.

However, it’s important to know that this perk is only for users with a PhonePe Business account and a registered shop within their company. Additionally, PhonePe offers seamless web integration, enabling businesses to streamline their online transactions and enhance their digital presence.

Related Read: What is the SBI UPI Transaction Limit Per Day?

PhonePe Money Transfer Limit for Wallet

PhonePe’s digital wallet feature allows you to store funds for various transactions. PhonePe transfer limit for wallet refers to the maximum amount you can transfer using PhonePe’s wallet. You need to be aware of these limits as they can affect your ability to send money to others and plan your financial transactions accordingly.

For bank-related activities on PhonePe, there are daily transaction limits in place. These limits ensure the security of transactions and prevent fraudulent activities.

• The daily PhonePe transfer limit for wallet users who have completed minimum KYC verification is ₹10,000. Thus, you can send or receive up to ₹10,000 in a single day using your PhonePe wallet.
• If you have completed full KYC verification, which involves providing additional personal information and documentation, the daily limit increases to ₹2,00,000 per transaction and ₹4,00,000 per day. With this higher limit, you can transfer more money using your PhonePe wallet.

It is worth noting that these limits may vary depending on factors such as your PhonePe account type, KYC status, and transaction history. To check your specific transaction limit, go to the “My Money” section of the PhonePe app.

Understanding the PhonePe transaction limit for bank transfers will help you effectively manage your finances and ensure smooth transactions within the platform.

Conclusion

PhonePe sets transaction limits to ensure security and prevent fraudulent activities. The daily transaction limit for individuals on PhonePe varies depending on the bank. While some banks have a maximum limit of ₹1 lakh per day, others allow transactions up to ₹2 lakhs. For bank transfer transactions through PhonePe, the daily limit is generally set at ₹1 lakh. However, certain banks may have lower limits for transfers made via UPI Autopay or the UPI payment gateway. Businesses using PhonePe can also enjoy higher limits based on their requirements and approval from the NPCI.

Related Read: What are Payment Banks? Features & List of Payments Banks

Frequently Asked Questions

1. Can I increase the PhonePe transaction limit per day?

Yes, you can increase your PhonePe transaction limit per day by completing the full KYC process. Once your KYC is verified, you can enjoy higher transaction limits for money transfers.

2. Can I check your current transaction limit within the PhonePe app?

You can easily check your current transaction limit within the PhonePe app via the following steps –

1. Open the app and go to the “My Money” section.
2. Select “Limits & Withdrawal” to view your daily UPI transaction limits and other activities, such as bank transfers and money transfers.

3. What happens if I exceed the PhonePe daily transaction limit?

Exceeding the PhonePe daily transaction limit will result in your transaction being declined. The maximum transaction limits for different activities on PhonePe vary depending on the type of transaction and your KYC status. It is important to be aware of these limits to avoid any inconvenience.

4. Do the transaction limits vary for different PhonePe account holders?

Yes, the transaction limits on PhonePe can vary for different account holders. The daily transaction limit depends on factors like the type of PhonePe account, KYC status, and transaction history. It is also important to note that these limits may change over time.

The post PhonePe Transaction Limit in 2024: Updated PhonePe Limit Per Day appeared first on Razorpay Learn.

What is a Payment Reference Number?

If you are searching for payment reference meaning, here is the answer.

A payment reference number is a unique combination of numbers and letters that identifies a specific financial transaction performed via payment API. These transactions can include bank transfers, direct debits, standing orders and card payments. These numbers are usually generated by the payer or the payment service provider, and they are often displayed on the payee’s bank statement or invoice.

For merchants, understanding payment reference numbers is essential for managing the cash flow of their business. It helps them keep track of individual payments and match them with the corresponding invoices or orders. This way, merchants can avoid confusion, errors or disputes when reconciling their accounts.

Payment reference numbers are crucial for addressing customer inquiries or refund requests. By using the payment reference number, merchants can easily locate transaction details and verify payment status. This can help merchants provide faster and better customer service, as well as comply with the relevant regulations and policies.

How Do Payment Reference Numbers Work?

A payment reference number is automatically generated when you create a payment link and assign it to a single transaction, regardless of its value. Unlike broader identifiers like customer/account details, payment methods or products, this number focuses solely on individual transactions.

Here is a payment reference number example to help you understand this concept better.

For example, purchases of Rs. 300 and Rs. 2,500 made by the same customer using their debit card would each have unique payment reference numbers. This simplifies tracking and monitoring for businesses, as they can easily identify all transactions associated with a specific card.

The payment reference number is typically included on the customer’s monthly account statements provided by credit or debit card companies.

Types of Payment Reference Numbers

1. Customer Service Inquiries

When one reaches out to customer service for assistance with a transaction or inquiry, they may provide them with a reference number. This unique identifier helps quickly locate the specific request in the future and offers timely support.

2. Credit Card or Loan Applications

When you apply for a credit card or loan, the issuer/provider may assign a pay reference number to your application. The location of this reference number varies depending on the company. Some companies include it on the application submission form while others provide it through emails or letters. This reference number serves as an identification code for your application, allowing you to easily track payments and communicate with the company regarding any updates. While most companies provide a reference number for inquiries, some might not.

3. Booking Reference Numbers

In the travel industry, booking reference numbers are essential for managing reservations made with airlines, hotels, travel agents or online travel companies. These unique codes are also known as confirmation numbers and are assigned to individual travel bookings. Having a booking reference number allows you to make changes to your reservation or inquire about specific details related to your trip. It simplifies communication between customers and service providers, ensuring a smooth travel experience.

How to Use Payment Reference Numbers?

1. Efficient Interaction with Customer Service:

Payment reference numbers enhance customer interactions with customer service representatives of financial institutions. Merchants can use these numbers to query payments on statements or address customer inquiries about unrecognised transactions. For example, if you notice a payment reference number on your statement that you don’t recognise, you can contact the bank’s customer service and provide them with the payment reference number to investigate further and resolve any issues.

2. Accessing Transaction Details:

By providing the payment reference number to the financial institution, they can retrieve transaction details from their database. These details may include the transaction date, payment amount and store details. For instance, if you want to know the specifics of a particular purchase made using your debit card, you can share the payment reference number with the bank’s customer service representative, who will then provide you with the necessary information.

3. Security and Fraud Prevention:

Payment reference numbers play a crucial role in confirming the location of card terminals and identifying terminal owners. This helps in ensuring the authenticity of transactions and preventing fraudulent activities. In case there is a suspected fraudulent transaction, payment reference numbers can be used during investigations to void payments and take appropriate action against the fraudsters.

Frequently Asked Questions

Q1. How do I track payment by reference number?

To track a payment using the reference number, you can follow these steps:

1. Access your payment platform or banking app.
2. Navigate to the transaction history or payment details section.
3. Look for the option to search or filter transactions.
4. Enter the payment reference number in the designated field.
5. Click on the search or track button.

Q2. What is an example of a payment reference?

A payment reference number is a unique identifier assigned to each transaction. It typically consists of alphanumeric characters and can vary in length. For example, a payment reference number may look like “PRN12345678” or “PAYREF987654”.

Q3. How can I check the reference number?

To check the reference number for a specific transaction, you can refer to your account statement provided by your credit or debit card company. The payment reference number will be included in this monthly statement. Alternatively, if you are using an online payment platform, you can find the reference number in your transaction history or receipt.

Q4. Why is the payment reference number important?

The payment reference number plays a crucial role in tracking individual transactions for businesses and customers alike. It allows businesses to easily monitor and reconcile payments received from customers by linking each transaction to a unique identifier. Additionally, customers can use the reference number to verify their payments and resolve any disputes or discrepancies that may arise.

Q5. Are payment reference numbers unique?

Yes, payment reference numbers are unique for each transaction. They are automatically generated and assigned to ensure that every transaction has its distinct identifier.

Q6. How long is a payment reference number valid?

The validity of a payment reference number depends on the specific payment platform or service provider. In most cases, the reference number remains valid for a period ranging from a few days to several months.

The post What is Payment Reference, and How to Track It? appeared first on Razorpay Learn.

QR codes have become an integral part of our lives recently, but they have been around for some time now. The fact is that they were invented as early as 1994 by a Japanese company called Denso Wave. Since then, QR codes have been evolving and becoming more mainstream; as you already know, they aren’t merely ways to manage inventory or sales today because there are QR codes for everything now!

In fact, in a report by RBI, NPCI, and HSIE, UPI payments made through QR codes made up a whopping 28% of the digital payments in India in 2021 so far, beating both credit and debit cards by at least 10% each.  Let’s dig deeper to understand this startling phenomenon in a better light.

What is a QR Code?

A QR code belongs to the same family as the barcode, but it has extended functionality. In short, it does more. A QR code is made up of a two-dimensional matrix barcode. Today, QR codes are widely used for navigating customers to websites – this is because these codes can store information up to 4296 characters. To put it into perspective, 4296 characters are approximately 1,000 words (technicalities notwithstanding). This says that QR codes can carry URLs or other information that consumers can access by scanning them.

A QR code is designed to convey information regarding the product when scanned by a mobile device or a QR code reader. Each QR code is unique because of the way information is converted and stored on it, which makes its patterns differ.

Let’s get into more detail on how QR codes function.

How QR Codes Work

QR codes are a 2-dimensional grid made of pixels that can be read and understood by computers. A computer processes them in two steps: first, reading from top to bottom and then from right to left. Let’s understand the parts of a QR code to see how they work.

1. Position Markers

If you observe, you will find three distinct position markers on the code in the form of concentric squares: these help the scanner locate the code, recognize it and finally scan it properly (and this happens within moments). The secondary function of these position markers is to orient the code correctly in the scanner so that information is read properly.

2. Alignment Markers

The second marker used in a QR code is an alignment marker. These are also concentric squares but smaller in size than position markers. If your QR code is big and pasted onto a curved surface, an alignment marker will help straighten the code when scanning, thus preventing errors.

3. Pattern Markers

A series of alternating black and white pixels help the scanner measure the size of the data matrix, allowing it to determine the information on it accurately.

4. Code Version and Format Patterns

A distinct pattern on each QR code differentiates the one being used from 39 other versions of this technology. Additionally, the format information on the code contains error tolerance limits that the code can carry.

5. Error Correction Duplicates and Data

This is the area of the code that carries the data you need access to, in addition to some duplicates that come into play in case certain parts of the code are damaged or unreadable. Typically, the damage tolerance for a QR code is 30%.

6. White Space

This space surrounds the code on all four sides and has the same significance as in design – it allows the scanner to isolate the code from its surroundings and focus on it properly. QR codes come in various types, and the patterns on them differ accordingly. Let’s see what they are.

QR Codes as a Payment Method

QR codes make for a contactless, digital payment solution that ensures simple, quick, and secure payment transfers, thus allowing businesses to accept payments from their customers directly into their bank accounts.

QR codes, therefore, serve as an efficient contactless alternative to accepting cash in physical stores or with delivery agents. Bharat QR codes can be used with UPI, debit, credit and prepaid cards, while UPI QR codes can only be used to accept UPI-based payments. 

    Related Read: How To Make UPI Payment Without Internet?

Types of QR Codes

There are two distinct types of QR codes that are used for facilitating contactless payments today. 

1. Static QR Codes

These codes are permanent once generated. This means that the information they carry cannot be edited or altered in any way – and this makes static codes great to use as employee IDs, product documentation, personal purposes, etc. When it comes to payments, static QR codes can be used to accept multiple payments from different customers, and have no expiration date. 

2. Dynamic QR Codes

As the name goes, the information in these codes can be edited at will. Whether you wish to correct errors in the information, add new information, update details, or such, these codes allow you to do that. They find extensive use in marketing campaigns. For payments, dynamic QR codes are generated for a specific amount for a particular customer, and then expire post that particular transaction is done. 

With a static QR code, you can generate the code only once, and it reads the same way for all transactions. The customers then scan the code and enter the value of the required transaction to make the payment. With a dynamic QR code, you can pre-code the value of the transaction into the code. Post-scanning, your customer only needs only enter their PIN number and the payment is done. Static QR codes, therefore, are used in physical stores, and dynamic ones are more useful in the case of collecting payments via home delivery agents. 

 Related Read: How to Generate GST-Compliant Dynamic QR Codes?

How to Get Bharat QR Code

BharatQR, as the name suggests, is a QR-based solution that enables digital payments and can be used across BharatQR enabled apps. It is developed by NPCI in collaboration with VISA, Mastercard, Amex, and Rupay. It is the newest payment mode that businesses in India can use to accept money from their end customers directly into their current accounts. The top 3 benefits of using the Bharat QR code are:

• Security- Bharat QR is as safe as using a UPI app. Your payments are safe from any third party. 
• Interoperability- Bharat QR is compatible with a host of apps. You can use cards such as Visa, MasterCard, Annexe or RuPay) or BHIM UPI.
• No additional charges- As the term suggests, you need not pay extra money to use Bharat QR.

You can use Bharat QR in the following simple steps:

• Download an app that is compatible with Bharat QR.
• Scan the QR code. 
• Complete the payment using a debit card or UPI. 
• You’re done!

Conclusion

QR codes have made life simpler for many large-scale enterprises as well as small businesses. They have ushered in a new era of contactless payments by making them more seamless than ever. 

Want to experience the futuristic QR codes for your business? Give Razorpay MultiQR Codes a shot. Razorpay MultiQR Codes empower you to: 

✓ Create multiple static, dynamic, Bharat or UPI QR codes absolutely free of cost 

✓ Offer multiple payment modes to your customers 

✓ Integrate your QR codes with POS, billing system, and delivery app 

✓ Get your own multi-branded QR code with your company name, logo and custom merchant VPA 

✓ Generate QR codes for multiple stores and multiple customers

The post What Goes Behind a QR Code? appeared first on Razorpay Learn.

With so many UPI providers out there, with more and more cashbacks, scratch cards and discounts, we’ve seen the rise of UPI like no other mode of payments. It’s so widely used that it is the most preferred payment mode for a greater extent of P2P (Person to Person) transactions.

While UPI transactions are free as of now, there have been indications that some private banks have been levying a fee on UPI transactions of over 20 in a month. Some large private banks have introduced these charges to prevent frivolous transactions.

[Suggested reading: UPI AutoPay Will Be a Gamechanger in the Payments Industry]

What is UPI?

Not that anyone needs an introduction, but here’s one anyway. Unified Payments Interface (UPI) is an instant, real-time payments system developed by the National Payments Corporation of India (NPCI) to facilitate inter-bank transactions. Monitored by the Reserve Bank of India, UPI works by instantly transferring funds on a mobile platform. For those interested in conducting secure and efficient digital transactions, grasping the concept of what is upi and its working is crucial.

So, what’s the catch?

We’re all familiar with the charges levied by banks for transactions carried out by various modes of payment, like NEFT, RTGS, mobile wallets and more. Surprisingly, UPI remained on the other side of the spectrum for a very long time, without charging its users any fee for transactions.

At present, there are no charges for UPI transactions, both P2P and P2M (Person to Merchant), but as the user-base saw new heights, some banks started making announcements to their customers about the charges for P2P UPI transactions from 1st May 2019.

Related Read: UPI Transaction Charges

Private banks levy charges on UPI transactions

Major private banks in India have started to charge users for P2P UPI transactions when the transactions go beyond 20 in a month.

Transactions that amount to INR 1,000 or below will be charged INR 2.50, and transactions higher than INR 1,000 will be charged INR 5. This fee doesn’t include GST, which means, an additional 18% GST charges will be levied as well.

Banks say that the charges have been introduced to prevent frivolous transactions from putting a load on their systems.

While Kotak Mahindra Bank was the first bank to announce these charges, other banks have followed suit as well.

These charges do not apply to the payment of bills, online shopping, merchant payments, etc. Only P2P transactions are to be charged for, irrespective of the bank account or the UPI provider. Most believe that the charges won’t impact how the country uses UPI since most people don’t carry out more than 30 transactions, to begin with. Since P2M transactions remain to be uncharged for, this will not affect the usage of UPI.

We’ve seen a surge in UPI adoption in India, and we only expect it to see newer heights. We also talked about what an impact UPI has made in the fintech adoption in the country in our report The Era of Rising Fintech.

In 2018, HDFC sent an email to its customers about introducing charges on P2P UPI transactions from July 2018 but somehow reconsidered the same. There hasn’t been an update since.

With over 140 banks supporting UPI, we’re sure banks will catch on to the bandwagon sooner or later, and UPI transactions may no longer be free of cost.

The post UPI Based P2P Transactions Will Attract Charges from Banks appeared first on Razorpay Learn.

India is unlocking new levels of the digital world at a lightning speed and fintech in the past 5 years has been a hotspot for it. Many innovations contributed to India becoming one of the most advanced countries when it comes to digital payments. 

At Razorpay, we oversee a bulk of the digital transactions happening across the country. We have compiled a lot of these insights based on Indian businesses and their transacting habits. 

How the nation’s capital transacted:

• Digital payments in Delhi saw a huge spike at 234.97% from 2018 to 2019 
• Google Pay was the #1 UPI app in Delhi throughout 2018 at 39%, as well as 2019 at 50%
• Amongst wallets, Ola Money (27%) was used the most, followed by Amazon Pay (25%)

What’s in this report

Insights about the payment ecosystem 

A sneak peek into what is shaping the current scenario in payments in Delhi and what are the factors promoting its growth. Read about the possible game-changers in the new decade.  

Overview of how Delhi transacts

Dive deep to know the most preferred payment mode for in the capital region and how and where they transact. Understand how the trends have changed from 2018 to 2019.

Opportunities & challenges in fintech

With fintech booming  understand what are the opportunities and the hurdles that might occur. Get fin-facts from across the nation, just so you can boast about them! 

PS: All findings in the report are based on transactions held on Razorpay platform

The post Report: The Era Of Rising Fintech – Delhi Edition appeared first on Razorpay Learn.

Let me help you here. None. Because today, people, in general, don’t want to read as much and images aren’t nearly as dynamic. 

YouTube videos, Snapchat clips, GIFs and Instagram are the most preferred social media platforms for the new generation. Also, thanks to more exceptional technology and user expectations, video marketing will become even more exclusive in 2019 and beyond. 

Video has dominated social media. And, to ensure your video marketing campaigns wham your objectives and push your social media forward, here are some hacks to cut through the noise.

1. Sell by not selling

According to a report from HubSpot Research, more than 50% of consumers want to see videos from brands. There is a ton of sales muddle on the internet that repels and annoys your customers. Don’t let your brand be that annoying orange. Instead, centre your message around the story and not the sale. 

For instance, apply the same rules of written content marketing to your campaign–add value for your customers. Personalise your videos and strike your audience’s heart with an emotional appeal to heighten your brand awareness or any specific objective tied to the campaign. 

Pro Tip: Tell a great story

2. Shorter the better

Probably, one-fourth of your viewers will scroll away from a video within 15 seconds or less. Avoid lengthy and overstretched narratives, cut it short, and get to the point in the beginning 5-10 seconds to manage customer expectations. 

Pump in the element of surprise by building curiosity, ask questions and use teasers to hook your customer’s attention. Immediately convey the value, Inspire them, make them laugh and give them enough reason to watch. 

Pro Tip: Build foundational knowledge with How-To videos

3. Introduce humour. Don’t be boring 

When it comes to social media, younger generations are more open to humour. As a brand, this is your chance to try something unconventional. 

Very often in the B2B world, people get panicky about comedy and say it doesn’t belong here. Think again, will someone follow your social media profile just to watch what you have to say about your product? 

Therefore, it’s essential to build a connection, stay relevant and show your audience that you are not firing automatic tweets. Give them a reason to stay. 

Pro Tip: It’s easy to imitate your competitor’s stiff tone, but can you crack a joke and standout?

4. Don’t forget SEO

YouTube is the world’s second-largest search engine, and people turn to the website for DIY videos, to be entertained, learn something new, etc. 

The creation of unique content is essential, but it’s equally important to ensure that your target audience can find the content. And, search engine optimisation is one of the most effective ways to boost the visibility of your content.  

To ensure your videos gets seen, tag your videos with relevant keywords, fully explained descriptions and unique titles. Publish and share your content on relevant platforms, add subtitles, and introduce good quality imagery via custom thumbnails to sell your video.  

Maximise exposure by uploading content using each platforms’ native player because videos posted directly on a platform increases your chances for better engagement. Finally, measure your performance–determine what worked and what didn’t, and later, optimise your content.  

Pro Tip: If there’s a box, it has a purpose. Fill it up, because Google wants you to.

Conclusion

The idea of video marketing isn’t brand-new, but if you aren’t creating videos, you’re likely falling behind. And what matters to your audience is simple, raw and authentic content. 

Till then, keep hustling!

Read more: 6 Major SEO Mistakes to Watch out For! 

The post 4 Video Marketing Hacks For Businesses In 2020 appeared first on Razorpay Learn.

There is enough data out there to show that Indians are making payments and accepting payments a lot more with every passing month. The fact that there are a wide variety of payment options available today is also enabling us to transact digitally a lot more. 

But while digital transactions are on the rise, it is also true that cash is still king.

Despite the convenience of digital payments, a large number of people still want to use cash. Of course, for a business, digital transactions make life a lot easier. As a business, you would want your customers to pay you digitally.

Your processes become easier for you when they do.  But how do you get someone who prefers to use cash to transact online?

One easy way of doing that is using Razorpay’s Payment Links.

How do Payment Links work?

Let’s say a customer buys an item from your website and chooses the cash-on-delivery option as the payment mode. Now, once you accept the order and while it is getting shipped from the warehouse, you can send the customer a Razorpay Payment Link to make the payment online while they wait for the order to be fulfilled. 

Your customer can choose any of the available options like cards, netbanking, UPI or wallets by clicking on the Payment Link.

It’s simpler for them and better for you, isn’t it?

Creating a Payment Link is very easy using the Razorpay Dashboard. All you have to do is log in to your Razorpay Dashboard and create a Payment Link. This link can then be shared easily with a specific customer or with multiple customers.

The best thing is that you can integrate Razorpay Payment Links with your chatbot. This integration will save you a huge amount of time and effort. It makes sharing links with specific customers very easy. 

[Suggested read: How E-commerce Companies Can Reduce Abandoned Carts]

Razorpay Payment Links come with a host features.

• Social media sharing

• Partial payment acceptance

• Zero payment gateway integration

The cherry on the cake is that there is no additional charge or fee to create payment links. The standard transaction fee of 2% on the transaction amount is applicable.

That’s it! So, go ahead and use Razorpay Payment Links to turn your cash-on-delivery customers into digital transactors.

The post Convert Cash-On-Delivery Customers Into Digital Payers With Payment Links appeared first on Razorpay Learn.