RTGS Charges 2024

The fees associated with RTGS transactions are called RTGS charges. As of 2024, the Reserve Bank of India (RBI) does not impose any processing fee for RTGS transfers but levies a service fee on the sender. The beneficiary is not required to pay any charges on inward transactions.

The current fee structure for RTGS transfers is as follows:

• For transaction amounts between Rs 2 lakh and INR 5 lakh, the service fee does not exceed Rs 24.50 plus taxes.
• For transaction amounts of Rs 5 lakh and above, the service fee does not exceed INR 49.50 plus taxes.

It’s worth noting that the RBI sets these maximum charges, and banks can charge lower fees than those mandated.

What Are the Applicable Fees for RTGS Transactions?

Here is the detailed breakdown of the applicable fees on RTGS transactions.

In addition to service fees, some banks may charge other fees, such as processing or convenience. These additional fees vary across banks and should be considered while making high-value transactions.

RTGS Charges For Top Indian Banks?

It is important to be aware of RTGS payment charges before initiating a transaction request. Here is a breakdown of RTGS charges for some of the top Indian banks:

HDFC Bank RTGS Charges

HDFC Bank does not levy any charges for online RTGS transactions, irrespective of the transaction amount. However, charges apply for branch-based RTGS transactions:

• A flat fee of Rs 15 plus GST is levied.

Axis Bank RTGS Charges

Like HDFC Bank, Axis Bank also does not levy charges for online RTGS transactions. However, for branch-based RTGS transactions:

• Transactions between Rs 2 lakh and Rs 5 lakh incur a fee of Rs 25 plus GST.

• Transactions above Rs 5 lakh attract a fee of ₹50 plus GST.

RBL Bank RTGS Charges

RBL Bank also does not charge any fees for online RTGS transactions. For transactions at branches:

• Transactions between Rs 2 lakh and Rs 5 lakh are subject to a fee of Rs 20 plus GST.

• Transactions above Rs 5 lakh incur a fee of Rs 40 plus GST.

ICICI Bank RTGS Charges

ICICI Bank offers free online RTGS transactions without any charges. However, for branch-based transactions:

• Transactions between Rs 2 lakh and Rs 5 lakh attract a fee of Rs 20 plus GST.
• Transactions above Rs 5 lakh have a fee of Rs 45 plus GST.

Why Choose RTGS for High-Value Fund Transfers?

RTGS is an ideal option for high-value fund transfers due to several reasons. Firstly, RTGS ensures real-time processing, meaning the funds are transferred instantly and settled in the recipient’s account within two hours. This makes it highly suitable for time-sensitive transactions, such as property deals or urgent payments.

Secondly, RTGS provides enhanced security features that protect the transfer of large sums of money. The payment system operates on a gross settlement basis, which means each transaction is settled individually without netting off against other transactions. This minimises the risk of fraud or unauthorised access to funds.

Lastly, RTGS is a reliable method for high-value transfers as it is facilitated by the Reserve Bank of India (RBI). The central bank oversees and regulates all RTGS transactions to ensure smooth and efficient processing.

Tips for Cost-Effective RTGS Transactions

To minimise RTGS fund transfer charges, consider the following tips:

• • Compare Fees: Different banks may have varying charges for RTGS transfers. Research and compare the fees offered by various banks to find a cost-effective option.
  • Transaction Amount: Some banks offer discounted or waived charges for higher transaction amounts. If possible, consolidate multiple smaller transfers into a single, larger transaction to take advantage of these benefits.
  • Timings: Check the RTGS timing restrictions imposed by your bank. Conducting RTGS transfers during non-peak hours or specific time slots may result in lower charges.
  • Preferred Banking Solutions: Some banks provide preferential pricing on their bundled banking solutions, which may include reduced charges or even free RTGS transactions.

Frequently Asked Questions

Is RTGS Transfer Free?

RTGS transfers are generally free for online transactions, but some banks may charge fees for branch-based transactions.

What Are The Charges For RTGS As Per RBI Guidelines?

The RBI sets maximum charges for RTGS: ₹24.50 + GST for transactions between Rs 2-5 lakh and ₹49.50 + GST for transactions above Rs 5 lakh. Banks can charge lower fees.

How Are RTGS Charges Calculated?

RTGS charges are generally calculated based on the slab system, where different slabs have different charges associated with them. For example, transferring up to ₹5 lakh may have a lower charge compared to transferring between ₹5 lakh and ₹10 lakh.

What Is The Charge Of RTGS In SBI?

The charges for RTGS in the State Bank of India (SBI) can vary depending on factors such as the amount being transferred and the type of account. It is recommended to refer to SBI’s official website or contact their customer support for the most accurate and up-to-date information on RTGS charges.

How do RTGS charges compare with fees associated with other electronic fund transfer methods?

RTGS charges tend to be higher than fees associated with other electronic fund transfer methods like NEFT (National Electronic Funds Transfer). However, RTGS offers real-time settlement and is suitable for high-value transactions requiring immediate funds transfer.

Can the timing of an RTGS transaction influence the applicable charges?

Some banks may offer lower charges for RTGS transactions done during non-peak hours.

The post RTGS Charges – Check RTGS Transfer Charges appeared first on Razorpay Learn.

GST for food and restaurant services has replaced the old VAT (Value Added Tax) and Service Tax . However, the service charge you pay at a restaurant is not the same as GST; it’s separate.

When it comes to alcoholic drinks, alcoholic liquor is liable to be taxed @ 18% GST. However, GST on alcohol is not charged. State-level VAT in charged on Alcohol.

For example, if you’re at a restaurant that serves both food and alcohol, you’ll pay GST on the food and non-alcoholic drinks, while VAT will be applied to the alcoholic beverages. For everyday food purchases, the GST rates range from 0% to 18%, depending on what you’re buying.

Restaurant Bills Before GST Implementation

Components of the Restaurant Bill Under VAT:

Before the implementation of GST, restaurant bills included multiple components:

VAT: Applied to the food portion of the bill.
Service Tax: Tax on the services provided by the restaurant.
Service Charge: Additional charge by the restaurant, not a tax.

Under the VAT system, different items on the menu were taxed at different rates, complicating the billing process. GST rates on food aimed to standardise this by replacing multiple taxes with a single tax rate applicable to the entire bill.

What were the Original GST Rules for Restaurants?

Restaurants fell under three different rate slabs, when the GST was first launched in July 2017.

With no air conditioning, the GST on restaurants was charged at 12%.

With AC or a liquor license, GST on restaurants was 18%.

For restaurants within five-star hotels, the GST rate was set at 28%

At that time, all Indian restaurants in India could take advantage of the input tax credit. It is applicable when you paid GST while buying supplies for your restaurant, you could subtract that amount from your tax bill.

GST Rate on Food, Restaurant Services, Beverage Services, and Accommodation

Under GST, Restaurants fall under the 5% GST rate, with no option to claim input tax credit (ITC) or the 18% GST rate, with ITC claims.

GST rate is decided depending on the location of the restaurant. For example, a higher GST rate would be applicable for restaurants located within hotels where the room tariff exceeds a specific amount.

The GST rate on restaurant food services is determined based on the type of establishment and other factors.

Understanding GST Rules for Restaurants

Restaurants in India fall under two broad categories for GST purposes:

Standalone Restaurants

Standalone restaurants, which are not located within hotels and do not provide accommodation services, are generally subject to a 5% GST rate on their services. However, they do not have the option to claim Input Tax Credit (ITC) on the GST paid for their inputs.

This 5% GST rate applies to both food and beverages served by standalone restaurants.

Restaurants within Hotels

Restaurants that are part of hotels where the room tariff is Rs. 7,500 or more per day fall under a different GST category. These restaurants are subject to an 18% GST rate on their services, including food and beverages served. The key difference here is that they can claim Input Tax Credit (ITC) for the GST paid on their inputs, such as raw materials, services, and other supplies used in providing the restaurant services.

Note: GST rates are subject to periodic changes.

GST Rate on Food Items

Related Read: GST HSN Code List

Food Bill Pre and Post GST Era with Example

In the below example, the total amount payable to the tax authorities under the current regime sums up to Rs.950. However, under GST, net outflow from the pocket will be Rs.250, thanks to the reduced rates.

Impact of GST on Food Items and Restaurants

The Goods and Services Tax (GST) has significantly impacted the Indian restaurant industry and the taxation of food items.

Decrease in Effective Tax

Before GST, customers had to deal with various taxes like VAT and Service Tax. With GST, these taxes were combined into a single rate, which led to a slight decrease in the overall cost of dining out. However, this reduction wasn’t very significant, and the service charge at restaurants stayed the same.

Input Tax Credit on Food and Restaurant Services

For restaurant owners, GST was expected to improve their cash flow by allowing them to get back the Input tax credit they paid on things like raw materials and rent. Initially, they couldn’t claim ITC. Although there have been changes since then, restaurants that charge 5% GST on their food services still can’t get these tax credits, unlike those charging 18% GST.

Exemption for Fresh and Frozen Food

As for food items, most fresh and frozen products, like vegetables and meat, are not taxed under GST. Only packaged foods with brand names are taxed. Currently, no food items are taxed more than 18%, and none fall into the highest tax bracket of 28%. So, there haven’t been any major price changes for food items due to GST..

Tax Slabs for Food Items

Food items and food services are categorized under various GST tax slabs, primarily 5% and 12%. This ensures that essential food items are not subjected to high taxation, with a maximum GST rate of 18% applicable to food services provided by restaurants.

Related Reads:

• Understand what CGST, SGST, IGST, and UTGST are
• GST on Insurance Premium

Frequently Asked Questions

How Much GST Tax on Food in Restaurant?

Restaurants without AC are charged at GST of 12%. Restaurants with AC or liquor licenses are charged at 18% GST while Restaurants within five-star hotels are charged at 28% GST

What is the rate of GST applicable on chocolate and cocoa products?

Chocolates and cocoa products have a GST rate of 18%.

Is there GST on takeaway food?

Yes, takeaway food does have GST. The rate can be either 5% or 18%, depending on where the restaurant is located.

What are the GST Rates on Catering Services?

GST rates on outdoor catering services is 18% (with ITC).

Is there a different GST rate for air-conditioned and non-air-conditioned restaurants?

No, there is no difference in GST rates for air-conditioned and non-air-conditioned restaurants under the current GST structure. Both are generally taxed at 5%.

Is GST applicable to packaged and processed food items?

Yes, GST on food items is applicable to packaged and processed food items, with rates generally ranging from 5% to 18%, depending on the type of product.

What is the GST rate on food served in trains?

The GST rate on food served in trains is 5%, irrespective of whether the food is cooked on board or supplied from outside.

What is the highest GST rate applicable on food items?

The highest rate of GST applicable in the food segment is 28%, which is applicable to certain goods such as caffeinated and carbonated beverages.

Are there any food items exempt from GST?

Yes, most fresh and frozen foods like vegetables, fresh fruits, meat, fish, etc. are exempt from GST.

Can restaurants claim input tax credit (ITC) on GST paid?

Restaurants can claim ITC if they charge 18% GST, but not if they charge 5% GST.

The post GST on Food Items & Restaurants – Rules and Rates on Food appeared first on Razorpay Learn.

A trial balance is a financial worksheet that lists all the balances of general ledger accounts in a company’s bookkeeping system. It’s essentially a summary of all the debits and credits in a company’s accounts at a specific point in time, typically at the end of a financial year.

Trial Balance Format with Example

To demonstrate how a trial balance functions, let’s look at a simplified example using ABC Corp’s unadjusted trial balance as of December 31, 2023.

In the below table all amounts are presented in rupees.

Analysis:

• Debits Total: ₹26,00,000
• Credits Total: ₹10,00,000

In this unadjusted trial balance, the totals for debits and credits are not equal, indicating there may be errors that need correcting. 

What is the Purpose of a Trial Balance?

A trial balance serves several key purposes:

1. Detecting Errors

It helps identify mathematical errors in the ledger by ensuring that the total debits equal the total credits. Discrepancies can indicate errors that need to be investigated and corrected.

2. Financial Statement Preparation

The adjusted trial balance serves as the foundation for preparing financial statements such as the balance sheet, income statement, and statement of cash flows. By providing the final balances of all general ledger accounts, the adjusted trial balance ensures the accuracy and completeness of these reports.

3. Summarizing Activities

Trial balance collects and presents the final balances of all general ledger accounts in a single document. This aggregation provides a comprehensive overview of a company’s financial activities during a specific period.

Types of Trial Balance

There are three primary types of trial balances, each serving a distinct purpose.

1. The Unadjusted Trial Balance

• The unadjusted trial balance is a financial statement that summarizes the balances of all general ledger accounts before any adjusting entries are made.
• It provides a snapshot of the company’s financial position at a specific point in time, typically the end of an accounting period.
• The unadjusted trial balance is used to ensure that the ledger is balanced and to identify any discrepancies that need to be addressed through adjusting entries.

2. The Adjusted Trial Balance

• The adjusted trial balance is a financial statement that lists the general ledger account balances after all adjusting entries have been made.
• It reflects the company’s financial position after accounting for accruals, deferrals, and other necessary adjustments.
• The adjusted trial balance is essential for preparing accurate financial statements, such as the income statement and balance sheet.

3. The Post-Closing Trial Balance

• The post-closing trial balance is a financial statement that lists the balances of all general ledger accounts after closing entries have been made.
• It ensures that the total debits equal the total credits, resulting in a net zero balance. This indicates that all temporary accounts (revenue, expense, dividends) have been properly closed, preparing the way for the next accounting period.
• The post-closing trial balance is typically compiled at the end of the accounting period, following the completion of all closing entries.

Adjusted Trial Balance Example

Analysis:

• Debits Total: ₹28,00,000
• Credits Total: ₹28,00,000

In this adjusted trial balance, the totals for debits and credits are now equal, showing that the bookkeeping entries have been adjusted correctly. This balance will be used to prepare the financial statements.

How Does a Trial Balance Work?

A trial balance is worked by listing all the ledger account balances into two columns: debits and credits.

STEP 1: Ledger Balances are Compiled

At the end of a reporting period, all ledger account balances are compiled.

STEP 2: Debits and Credits are Listed

Each ledger balance is entered into the trial balance worksheet under the appropriate debit or credit column.

STEP 3: Totals are Calculated

The totals of both the debit and credit columns are calculated.

STEP 4: Totals are Compared

The totals of debits and credits are compared to ensure they match.

STEP 5: Discrepancies are Reviewed

If the totals match, it indicates that the mathematical aspect of the bookkeeping is correct. If not, discrepancies are investigated.

Limitations of a Trial Balance

1. Errors with Incorrect Amounts

The trial balance may not detect errors when a journal entry has incorrect amounts recorded in both the debit and credit accounts. Since the debits and credits still balance, this type of error can go unnoticed.

2. Errors of Omission

If transactions are not recorded in the journal at all, these omissions will not be reflected in the trial balance. Consequently, a trial balance that is mathematically correct may still fail to identify such missing transactions.

3. Unrecorded Journal Entries

Any missing journal entries in the ledger will not appear in the trial balance. This makes it difficult to identify transactions that were not recorded and could lead to incomplete financial information.

4. Misallocation of Amounts

The trial balance cannot identify errors where correct amounts are recorded under the wrong accounting categories. Misclassifications of entries can still result in a balanced trial balance, thus failing to highlight these allocation mistakes.

How is Trial Balance Different from a Balance Sheet?

A trial balance is a preliminary step in preparing a balance sheet. It provides a summary of general ledger account balances, while a balance sheet presents a comprehensive overview of a company’s financial position including assets, liabilities, and equity.

Here’s how they Differ:

Conclusion

In conclusion, the trial balance is a fundamental tool in the accounting process, playing a crucial role in ensuring the accuracy and integrity of financial records. While it may not uncover every potential error, it is a critical step in the accounting cycle that helps ensure the reliability of financial statements, which in turn supports informed decision-making by stakeholders and compliance with financial reporting standards.

FAQs

1. What is the purpose of preparing a trial balance?

A trial balance ensures debits equal credits to verify accounting accuracy and identify errors before preparing financial statements.

2. How often is a trial balance prepared in accounting?

Trial balances are prepared periodically (e.g., monthly, quarterly, annually) to ensure accurate financial records.

3. What happens if the trial balance doesn’t balance (total debits don’t equal total credits)?

If a trial balance doesn’t balance, it indicates errors in accounting records. Investigate and correct discrepancies to ensure accurate financial statements.

4. Is a trial balance a financial statement?

No, A trial balance verifies accounting accuracy. It’s a bookkeeping tool, not a financial statement.

5. What are the main types of errors found in a trial balance?

Trial balance errors include omissions, incorrect amounts, misallocations, and violations of accounting principles.

6. What is the difference between a general ledger and a trial balance?

A general ledger records all financial transactions, while a trial balance summarizes account balances to verify accuracy.

7. Does a balanced trial balance guarantee accurate financial statements?

A balanced trial balance doesn’t guarantee accurate financial statements. It checks math, but errors like omissions or misallocations may still exist.

The post What is Trial Balance? Types, Format, Examples & How it Works appeared first on Razorpay Learn.

It matters even more in the financial realm.

Money defines our decisions, and vice versa, in big and small hands alike. When you double it tenfold, big institutions and mammoth industries overhaul millions of transactions at the speed of light. For instance, Razorpay, one of the largest FinTech players in India, processed a Total Payment Volume (TPV) of $150 Billion in 2023.

A lot matters in enabling these transactions. Technical communication is one of the pillars that upholds product and business trust. It augments users’ understanding and usage of the products and services through transparency and accessibility. 

There is, however, a lot more than what meets the eye. In this blog, let us deep dive into the role of technical writing in the financial industry and the many ways it has come to shape.

The Early Days

The online literature for the early days of technical writing is very sparse. Its evolution is an interesting story, but technical documentation efforts in fintech get buried amongst the industry’s regulations and compliance changes. Documentation is deeply integrated into these developments.

As such, my references for the article are a combination of online research and our latest TalkX episode that delved into how financial tech writing came about.

In finance, most discussions revolve around exchanging money and goods, as well as related communication and information. Sometimes, they aim to bring awareness towards a better deal or highlight a recommended process. Other times, it’s for standardising processes for an organisation, decision-making and documenting, or raising capital via stocks.

Finance has evolved dramatically, and agents of such communication, whom we now know as technical writers have huddled around these changes and grown simultaneously.

This became apparent with the advent of the telegraph and fax machines. By the 90s, technical writers were not only subject-matter experts anymore but also the primary proponents of these machines. Consider the following questions:

How did you use these machines? What format does a fellow follow to depict a Balance Sheet? What program connects the mainframe computer to the back-end operations? How do the complex banking and financial systems like SWIFT, ATMs, and more work?

The Unique Case of Tech Writing in Financial Industry

There is one unique thing that separates tech writing from most industries when it is applied to the financial industry. Gopalakrishnan Tharoor, a persevering technical writing veteran from our latest TalkX session, elaborates that to navigate these waters—where financial information has grown complex and outsourcing avenues quickly gained speed in the 90s— ‘focus’ had to join hands with systems.

“Fin-tech prizes focus,” began. He gave us a glimpse of CMMI guidelines strictly adhered to in 80-page printouts, finally to be presented to the project managers. These were detailed protocols, annual reports, prospectuses, white papers, and more for a renowned bank. They fall at the mercy of intense rework should any information be more or less necessary.

As you can imagine, these were all boringly lengthy and taxing. Where outsourcing was accumulating the spotlight, a single-minded focus had to shake hands with collaboration; he emphasised, “To prioritise the focus, you need systems. Well-oiled systems make or break documentation.”

Importance of Systems

For focus to remain at the centre of the venture, participants in the financial operations process must be immune to structural challenges, which was only possible with systemic efforts and strict protocols. 

• Systems are an antidote to the dynamic financial landscape. 
• Systems enforce discipline. Writers strictly adhere to writing protocol and collaboration processes to facilitate the smooth making of changes to the documentation.
• Systems empower accuracy, transparency, and literacy.

It made sense. We are talking of an era before the omnipresent internet, where collaboration, communication, management and more happened without modern software tools. Remove any cog from this wheel, and you get documentation that is a dead man’s dream—non-existent, inefficient and wasteful.

Balanced Writing

Another unique component that redefines financial tech writing is the distinctive balance it strikes between expert and novice writing. What does that mean? 

Money matters are overwhelmingly universal. Every single person and institution deals with money in some structure. It is unlike most industries that more often than not, cater heavily to an audience of subject-matter experts. Think medicine, engineering, aeronautics and more.

Indeed, within money matters, different organisations exist for various monetary use cases. These included stock brokers and payment gateways, who perform fundamentally monetary but functionally different work.

But, the profile of a financial product user cannot be classified so easily. Yes, audience research helps, but the lack of context for a non-technical audience can easily deter and discourage the users.  Most customers tend to have an idea. But how do we elevate users from awareness to literacy? That is a challenge unique to the financial industry.

Tech writers tackle this interesting challenge: to explain the structure of the information and contextualise that structure simultaneously. A great example is how we developed documentation for rather approachable, merchant-facing products/topics like Payment Gateway, Subscriptions, and more, in contrast to developer-friendly API/Integration documentation.

Prioritising Documentation

We have seen that technical writing has grown alongside financial products and the tools to use such products. But why did we even need documentation for that?

Consider Razorpay, for example. We help businesses accept payments in a B2B or D2C space. But we also provide Source to Pay options to manage money, control outflow and categorise it. Then, there are credit products such as Razorpay Line of Credit and RazorpayX Corporate Cards. 

You can notice the product suite is almost endless. Is there any indiscriminate common ground for both a beginner and the biggest corporations to start from? Yes. Razorpay Docs.

Besides being a starting point, documentation broadcasts easy-to-consume, transparent product information to the users at the get-go, very stylishly and in an accessible manner. 

What else does it do?

Create Awareness

“Documentation gives you more information. Clear and structured information,” Raghuram Pandurangan, a Senior Tech Writing Manager at PayU, said during TalkX. He went to great lengths to uncover tech writing’s innate ability to market efficient product use.

“There are multiple Payment Gateway integration types, each with specific benefits. Having documentation that lists down everything—process, steps, use cases, errors and more—it gives a clearer picture of the process to the end consumer and enforces better decision making.”

Enable Financial Literacy

Remember that fact about moving users from mere awareness to product literacy?

Vinita Jagannathan, Lead Technical Writer with Razorpay, mentioned during the TalkX episode that, “The financial domain is vast. We cannot know who is coming to the documentation site for what reason and with what expertise.

“So knowing this fact—that we will have users arrive at the Docs platform with very limited knowledge— enhances the tech writers’ personal expertise and ethos. It forces us to consider our role and responsibility to present information that welcomes all users. And we welcome them to communicate the end goal—here is how you can successfully complete the integration.”

That is one aspect of creating literacy. Vinita goes on to also highlight how it educates users on the best practices using the documentation site. “Be it security or legal awareness that supports a product—we highlight most of it on our docs. That is what creates strong documentation and enhances product literacy.”

And it applies not only to the kind of information presented. It also matters how you are presenting this information. “We use screenshots and videos, gifs, diagrams, checklists, best practices guides and much more on the documentation. All of these are the various ways we present information for the users to consume, ensuring it is accessible,” she added.

Precise Precision

However, all those efforts are in vain if the documentation does not have up-to-date and precise information. Exactness, correctness and accuracy are critical in fintech. 

“You cannot have a developer come to the APIs and find inconsistencies or wrong information. These are money matters,” Vinita explained. 

Lack of accuracy is costly to all the parties involved. It unnecessarily lengthens the resolution processes and provides a poor user experience.

Raghuram highlights a critical aspect of documentation here: collecting feedback. “To keep information precise and absolute, we must round up the latest news, deep dive and research to bring out the most accurate information.

“But once it is out there, we must also have ways to correct the documentation if more information is available to add. We can do this by collecting feedback.”

Security and Compliance

The greatest challenge of them all is to share secure and compliant information that is up-to-date. Financial technology is largely digital now, which poses a great security risk to the information in transit. Data leaks, cyber frauds, phishing, and scams are all possible, with even the most minute access to the most vulnerable information. Exploitation knows no bounds.

Consider the example where a screenshot or a video that shows an active phone number belonging to a person is publicly available. If we do not care to hide such sensitive information, it can very easily be misused. The same goes for financial information like bank accounts or VPA/UPI details. This is why most screenshots, files and videos you see on docs are masked or contain imaginary numbers.

Another aspect of security in documentation is to provide users with the security certificates binding the organisation. All certifications—PCI DSS, SOC and ISO, and encryption and authentication- must be publicly available so that users can be aware and exercise their rights.

In Conclusion

These are insights into creating world-class documentation in the financial industry and what goes on in technical writers’ minds when we think of documentation. There are other aspects towards documentation, and we’ve covered only one part of the mammoth industry: FinTech. 

Yet, no matter which area of FinTech we venture into, these principles remain intact: accessible, accurate and contextual documentation.

The post Technical Writing for the Financial Industry appeared first on Razorpay Learn.

An escrow agent is a neutral third party who holds assets and funds involved in a transaction until certain conditions are met. This helps protect the buyer and the seller and ensures the transaction is completed smoothly and fairly.

Escrow agents are commonly used in real estate transactions, but they can also be used in other types of transactions, such as business sales and asset transfers.

How Does an Escrow Agent Work?

The escrow process typically begins with the buyer and seller signing an escrow agreement. This agreement outlines the terms of the transaction, including the assets and funds that will be held in escrow and the conditions that must be met before the escrow can close.

Once the escrow agreement is signed, the buyer will deposit the earnest money deposit into the escrow account. The earnest money deposit is a portion of the purchase price that is paid by the buyer in good faith. The seller will deposit any required documents into the escrow account, such as the deed of trust and title insurance policy.

The escrow agent will then begin the process of verifying that all of the conditions of the escrow agreement have been met. This may include reviewing title reports, obtaining appraisals, and coordinating inspections. Once all the conditions have been met, the escrow agent will close the escrow and release the funds and assets to the appropriate parties.

Benefits of Using an Escrow Agent

There are many benefits to using an escrow agent, including:

• Protection for both the buyer and the seller: Escrow agents act as a neutral third party, which helps to protect both the buyer and the seller from fraud and other problems.
• Smooth and efficient transactions: Escrow agents have experience handling complex transactions and can help ensure the process is completed smoothly and efficiently.
• Compliance with regulations: Escrow agents are familiar with the laws and regulations that apply to escrow transactions, and they can help to ensure that the transaction complies with all applicable requirements.

Types of Escrow Agents

There are two main types of escrow agents: licensed and unlicensed.

Licensed escrow agents are regulated by the state and must meet certain requirements, such as having a bond and insurance. Licensed escrow agents are typically used for real estate transactions, but they can also be used for other types of transactions, such as business sales and asset transfers.

Unlicensed escrow agents are not subject to the same regulations as licensed escrow agents. Unlicensed escrow agents are often used for smaller transactions, such as online purchases and freelance contracts.

Here are other types of escrow agents based on the type of transaction:

• Real estate escrow agents: Hold the funds and assets involved in a real estate transaction until all of the conditions of the escrow agreement have been met.
• Business sale escrow agents: Hold the funds and assets involved in a business sale until all of the conditions of the escrow agreement have been met.
• Asset transfer escrow agents: Hold the funds and assets involved in an asset transfer until all of the conditions of the escrow agreement have been met.
• Online purchase escrow agents: Hold the funds involved in an online purchase until the buyer has received the goods or services they purchased.
• Freelance escrow agents: Hold the funds involved in a freelance contract until the freelancer has completed the work and the client is satisfied.

When Do You Need an Escrow Agent?

You may need to use an escrow agent if you are involved in any transaction involving the transfer of assets or funds. This includes real estate transactions, business sales, asset transfers, and even some types of online purchases.

Choosing the right escrow agent ensures a smooth and successful transaction. Here are some tips on how to pick the right escrow agent:

• Consider your needs. What type of transaction are you involved in? How complex is the transaction? What are your budget and timeline? Once you have a good understanding of your needs, you can start to narrow down your options.
• Get referrals. Ask your friends, family, and colleagues for recommendations. You can also check with your real estate agent or loan officer.
• Research escrow agents. Once you have a few names, take the time to research each escrow agent. Look at their website, read reviews, and compare fees.
• Interview escrow agents. Once you have narrowed down your choices, interview each escrow agent. This will allow you to learn more about their experience and services. Be sure to ask about their dispute handling process and escrow insurance coverage.
• Choose an escrow agent that you trust. Ultimately, the best way to choose an escrow agent is to choose one you trust. This means choosing an experienced, reputable escrow agent with a good track record.

Speak with an escrow expert for free

FAQs

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APIs are everywhere, and though we may not be aware, we use them every day. Some of the instances where APIs are used in the background:

• Posting a photo from Facebook to Instagram. 
• Tracking your food order delivery.
• Checking the weather forecast.

APIs have been around for a while. The past decade has witnessed a surge in API development and usage. As per ProgrammableWeb, a well-known public API directory, the year 2022 saw over 24,000 APIs being listed with them. The graph below shows the massive growth in their directory volume since 2005:

Source: ProgrammableWeb

In a 2022 Postman survey, 51% of respondents said that more than half of their organisation’s development effort was spent on APIs. In 2021, developers sent over 1.13 billion API requests using Postman (Postman is a platform for building and testing APIs). 

The pandemic has further accelerated the need for API usage, as many businesses have been forced to undergo digital transformation to stay competitive.

Why is API Documentation Essential

For any software, documentation is essential for user education and adoption. Given below are some reasons that stress the importance of good API documentation:

• Developers are the primary consumers of APIs and need comprehensive, accurate, and well-structured information to start. Not just content, it is vital to provide a great user experience to developers. It is quite simple really – if the experience is not great, why would anybody want to use it? Hence, good documentation and user experience are critical for API success!
• API documentation leads to a reduction in support costs. By adding error descriptions, troubleshooting, and FAQ sections in the documentation, we can ensure that developers are able to find answers to questions without approaching support.
• API documentation is an important resource for internal teams and new employees to learn about a particular API and how it works.

Who Does It

Engineers maintain API documentation

A few organisations prefer to make API documentation part of their code base. This means that developers write the code and document it. Any changes to the code are immediately reflected in the API documentation as well, making it easy to maintain. This works if the organisation’s Engineering team is willing to maintain large chunks of code along with descriptive documentation. At times, documentation takes a back seat and becomes outdated.

Tech Writers documenting APIs

Many organisations prefer their Tech Writers to update and document the API documentation. A Tech Writer is empathetic to user needs and an expert who spends a lot of time documenting each and every nuance of an API with easy descriptions, ample examples, and sample codes. All that is needed is the right coordination between Engineering and Tech Writing to ensure clean and well-maintained API documentation.

Open API Specifications

If you have created your APIs in line with the Open API specifications (a standard interface description for HTTP APIs), you can also try and automate API documentation using tools such as SwaggerHub, Postman, apiDoc, Stoplight, and so on. Engineers or Tech Writers – anybody can use this tool to document APIs.  This is an automated process, which is efficient but may require final touches from a Tech Writer to ensure that complete descriptions and adequate examples are added to make your APIs easy to fire. 

Documenting APIs

Test Before Documenting It

Tech Writers usually receive the API details from the Product Managers and Tech team in the specifications document. As it goes with agile development, the software changes; hence, the developed version is different from the planned version. Therefore, Tech Writers should test the APIs at their end to ensure that they capture the correct information in the documentation. Postman, SoapUI, and Apigee are some of the tools used in the industry to test APIs.

At Razorpay, Tech Writers perform API testing using Postman. 

Anatomy of API Documentation

Ideally, API documentation should contain the following sections:

• Introduction: An overview of the API and authentication instructions. 
• Use cases: A brief explanation of the different goals the developer can achieve using that particular API.  Given below is an example of how we have provided the use case for Orders API.
• Entity explanation:  A list of all the parameters used in the API, along with their descriptions.API Endpoint:
  • List the API endpoint. 
  • Provide the sample codes in all supported languages to cater to the needs of a wide community. At Razorpay, we provide sample codes in 6 server languages.

• Detailed parameter descriptions with additional information such as data type, supported character length, whether they are mandatory/optional, and so on.

• Errors: Add the error response along with the reason and the suggested next steps.
• FAQs: List of questions that may arise during the API integration.

While the above-mentioned sections are mandatory, the following enhance developer experience:

• Best Practices: Some specific rules may need to be followed to get the best results from certain APIs. Those can be listed separately.
• Invest in an API Explorer: An API explorer is an excellent way of providing developers with a means to try out the API before the actual integration. Adyen has an excellent API explorer.

API Documentation at Razorpay

Razorpay offers APIs for easy integration of the Razorpay Payment Gateway, RazorpayX, and other Razorpay offerings like Payment Links, QR Codes, Subscriptions, Route, and Smart Collect. 

Developer Experience is critical, and hence API documentation takes center stage. We are constantly working towards improving the overall API experience with better documentation. We undertook the following initiatives:

• New API document structure based on user research and feedback, market trends, and best practices in the industry. For example, we added a section on API basics since a segment of our users are non-developers.
• Comprehensive and up-to-date API documentation- Updated code samples and request parameters. 
• User Feedback on the Docs site to make continuous improvement on Docs. For example, added use cases, better parameter descriptions, and more examples.
• Sample Codes in 6 Server Languages. Sample codes in more languages had been a constant ask from the developers. We worked with our Engineering team and added sample codes in PHP, Python, Java, Go, NodeJS and Ruby. 
• Adding error codes for all APIs. Developers need to know how to handle both success and failure scenarios, and hence it is important to provide error responses, along with the suggested next steps. We are working with the integration team to list out the possible error responses.

• Razorpay Postman Public Workspace. A Postman Public Workspace is akin to a repository for API sample codes. Postman users from anywhere in the world can access the Workspace, create a copy of the sample codes, save them to their private Workspaces (using a process called Forking), and test them at their leisure.  We went live with the Razorpay Postman Workspace last year and have seen good traction with 4278 forks and 3483 watchers. In fact, Razorpay was one of the 15 top workspaces in terms of fork numbers, as per the Postman report! Check our blog about Razorpay Postman Public Workspace: https://razorpay.com/blog/simplifying-your-api-experience-launching-razorpay-public-postman-workspace/

Source: Postman Report

The Tech Writing team at Razorpay works closely with the Tech and Integrations team on these initiatives as they are the subject-matter experts and have extensive experience working knowledge of APIs. Essentially, this gives us an opportunity to get direct feedback from the users who refer to API documentation and are the target audience.

APIs are here to stay. If your organisation uses a lot of APIs and you still do not have a structure to document APIs, it’s time to add it to your to-do list. It is absolutely critical to put in efforts to create excellent API documentation to boost the adoption of APIs. We hope this article has helped you with some pointers and provided a framework for documenting your APIs. Take a shot!

The post API-Culture: Importance of API Documentation appeared first on Razorpay Learn.

If not, we are here as a reminder to convey to you so. If you have started to undermine the importance of e-commerce statistics, here we are with some insightful statistics that will blow your mind!

Having an e-commerce business is the best thing you can own with its rising viability. Here are some of the astounding e-commerce statistics that will guide your business strategy in 2021.

• According to research by a content marketing institute, 61%, which makes up more than half of the American online consumers, prefer purchasing products after reading recommendations from a blog post.

This means as an e-commerce start-up, the year 2021 should be focused on creating opportunities to include your products in a blog post. Do it as naturally and organized as possible so that it doesn’t look too promotional.

• Nasdaq says about 95% of the purchases would be made online, i.e., through e-commerce by the year 2040.

This is some positive news every e-commerce start-up needs to hear. This statistic is also a motivational factor to keep framing marketing strategies to increase your conversion rates.

• It is highly important to cater to the needs of your dissatisfied consumers first. One dissatisfied consumer with bad word of mouth can prove to be detrimental to your business. 

55% of the online shoppers when dissatisfied with a purchase tell their family or friends.

The best strategy to adopt to turn your dissatisfied customers into happy customers is by following vigorous email marketing. Send them onboarding emails to change their opinion about your company or product. Apologize and accept refunds wherever necessary.

• Research by Optin Monster says, about 93.5% of internet users globally have shopped for products online.

Yet another reason to stay stuck to your goal and aim higher. Work harder towards marketing the products, and make the most of influencer marketing to increase the visibility and reach of your products.

• According to Venture Harbour, multi-step forms in WordPress is beneficial for increasing your conversions to 300%!

This is among the finest strategies out here to increase your e-commerce sales and conversions.

• It’s time to revamp your e-commerce website payment method system!

According to Kinsta, credit cards are the most widely used payment method, followed by digital payment systems and debit cards.

• 60% of the small e-commerce owners or start-ups don’t focus on having a structured Conversion Rate Optimization (CRO) strategy according to a State of Conversion Optimization Report.

A conversion rate optimization strategy is one that works towards keeping your website visitors stay on your website longer (i.e. increases the dwelling rate). It also makes sure visitors navigate throughout your site and end up purchasing the product in the end.

• A KPMG statistic says the top reason most people prefer shopping online is that they can purchase all day long for long hours.

This makes it essential to provide a very simplified purchasing journey for a visitor. More than that, reminding them that their product is about to go out of stock, enticing them through social media ads works wonders.

This again takes us closer to how important email marketing is.

• 65% of the shoppers make price comparisons on mobile phones when buying from a physical store, according to KPMG.

Yes, we have all been there. Obviously, e-commerce sites provide great deals that physical stores fail to provide because of their overhead costs.

Therefore, you should try to advertise your products where shoppers lookup for price comparisons. Take the help of social media ads and google ads to advertise your products.

• A whopping 81% of the customers do online research before purchasing a product.

Electronic devices like smartphones, tablets, and laptops most commonly fall under this category. Also, get your product description game up to provide information about the product the customer needs.

Each listed product should have proper product descriptions and specifications to help shoppers know about the product better.

• According to Google, 73% of the users switch from a poorly made mobiles site to a better one.

This is a reminder to focus on your making your e-commerce website responsive. It should be mobile-friendly and should have an intuitive interface. You should make the purchase experience as convenient as possible for your consumer to get repeat purchases.

• CTA buttons can boost clicks by 45%, according to CopyBlogger.

CTAs or Call-To-Action buttons are graphical buttons that can be inserted anywhere in your website for prompt action. For instance, placing a signup button, call CTA, or buy now button at an appropriate place can do wonders.

• Have you started making use of Instagram shoppable posts for displaying your products? If not, here is a stat by Locowise you need to hear.

Instagram advertising post urges about 75% of the Instagram users to take any action on the displayed product like visiting the website.

Even if the action doesn’t result in a conversion instantly, eventually it increases your website’s visibility, visitors to your site, and much more!

• Only 2.86% of your e-commerce website visitors convert to sales on average.

This is a figure most likely new e-commerce start-ups could relate to. Turn this weakness into an opportunity by working on your website’s conversion rate. Adopt a good CRO strategy to do so.

• The OptinMonster survey says mobile has the most cart abandonment rate at 78%, followed by tablets at 70% and laptops/desktops at 67%.

This figure also reveals that most ‘add to carts’ are performed by a mobile device. Various re-engagement techniques can be adopted to diminish this percentage. Sending sequencing emails is one of them.

Providing free shipping at the time of checkout is also one of the trusted ways to prevent car abandonment. An MCM survey also says providing free shipping increases profits of about 46.5% of small to mid-sized eCommerce businesses.

Conclusion

Each of the above-mentioned e-commerce data 2020 will compel you to focus on different marketing strategies. These statistics make it easier to focus on the right strategy. This hands-on-hands approach of making business strategies through e-commerce statistics is the best to work upon your weak points.

Speaking of cart abandonment 

As e-commerce is beginning to make large strides across all parts of the country, sellers are receiving a high volume of orders. Since there is a wave of internet penetration sweeping across the nation, we can expect the number of online buyers and sellers to increase. 

As sellers are faced with a huge pile of orders every day, they are also plagued with a common problem– Return to Origin or RTO orders. With Razorpay Thirdwatch, business owners need not worry about coping up with losses manually!

 With Artificial Intelligence, we help you tackle Cash on Delivery losses and reduce RTO and cancellations in your e-commerce store. 

While a message to the customer to confirm a purchase is a normal procedure for the customer, it can be so much more for the seller. Therefore, you can now enable Order Confirmations on the Thirdwatch Dashboard to send automated or manual confirmation notifications to your customers to confirm their orders!

Furthermore, through Razorpay Thirdwatch’s Address Correction feature, you can identify risky shipping addresses for your business, reduce return rates, increase your deliverability and success rates throughout your business and so much more!

Also read: How To Enable And Use Automated Order Confirmations On Your Online Store

The post 15 Powerful E- Commerce Statistics That Will Guide Your Strategy In 2021 appeared first on Razorpay Learn.

Their app was doing exceptionally well – a consistent 4+ rating and over 10 million active users. But having grown beyond the Indian market, their presence on the web mattered a lot. They could not reach a larger set of users through their regular marketing channels, and going beyond the app was integral to acquiring new users. For this, they needed a payment gateway.

And Razorpay became their default choice. Anjaan Bhojarajan, VP – Growth and Head of Product, HealthifyMe, says, “Razorpay has a great checkout mechanism, which helped us educate our users about our plans. Our conversion ratio has been through the roof with the integration.”

Integrating with Razorpay has been extremely beneficial for HealthifyMe. Razorpay now powers 100% of their web payments and is expected to contribute to 30% of their revenues. But was the decision to choose Razorpay an easy one? It never is. 

[bctt tweet=”Razorpay now powers 100% of HealthifyMe’s web payments and is expected to contribute to 30% of their revenues.” username=”Razorpay”]

A lot of product managers, startup founders or small business owners find it challenging to choose a payment gateway for their business out of the many options available to them. This article aims to help you choose the best payment gateway for your business.

What to look for in a payment gateway?

Any of the top payment gateways will have the following:

• Good success rates
• Multiple payment modes
• Easy and quick onboarding
• PCI-DSS compliant security
• Insightful and intuitive dashboard
• Competitive pricing options 
• Free setup costs and no annual maintenance charges

This is the very basic that a payment gateway should have. So what makes a decent payment gateway good?

Factors to consider Payment gateway

Here are some helpful factors to consider while choosing a Payment Gateway:

1. It is more than a payment gateway

Don’t think of a payment gateway as merely a digital payments enabler. A payment gateway can be the growth engine of your business. The payment gateway that you choose should have a host of other products or features that make up the payments suite. 

Here is what the Razorpay Payments Suite comes equipped with, along with our Payment Gateway:

• Razorpay Payment Links allows you to create and send links to your customers via SMS, email, WhatsApp, social media and chatbots. Businesses that have the payment gateway can use Payment Links to send payment reminders to their customers or convert customers that have abandoned their carts or send payment links in bulk to multiple customers, and more
• Razorpay Payment Pages helps businesses create a storefront to display their products and services. Even if you might have a payment gateway, you can use Payment Pages for specific purposes like collecting donations, selling tickets for your events, market a seasonal product or service, and more
• The Razorpay ePOS app allows businesses to collect digital payments in the offline world. You can empower your sales or delivery force with the ePOS app and allow them to collect digital payments from customers at the time of a physical interaction

2. It enables recurring payments 

India has seen significant growth in subscription-based businesses over the past year or so. Running a subscriptions business allows you to retain a customer for longer, making them coming back for more. To do this effectively, you need a payment gateway that will enable you to accept recurring payments with ease.

Here’s everything that you can do with Razorpay Subscriptions:

• Give your customers the option to pay you periodically through various modes like credit cards, debit cards, e-mandates, NACH and now, also UPI
• Get onboard with UPI AutoPay to open up an entirely new channel of customer acquisition by allowing your customers to pay using UPI, which is everyone’s favourite payment mode
• Create multiple billing models setting payment schedules based on fixed payments, quantities or usage. You can also offer your customers trial periods and charge an upfront amount before the subscription begins

3. It empowers you to run offers

A prospective customer might sometimes drop off because your product or service would exceed their budget. They could also go away to your competitor because of a discount. Offers and discounts are a great way to grow your business, and you should be able to run them right from your payment gateway.

Here are some types of offers you can run using Razorpay Payment Gateway:

• Run offers from specific cards, wallets or banks with a click of a button. You can even run festival or promotional offers to boost your sales during specific times
• Give your customers the option to pay via no cost card EMIs as well as cardless EMIs. Razorpay also allows businesses to integrate with PayLater service providers through the payment gateway easily

4. It is effortless to integrate 

Most small businesses don’t have the bandwidth and/or expertise required for complicated tech integrations. They would often even outsource the tech work to a freelancer or another company. In either case, they would require a solution that is easy and quick to execute. 

Here is why Razorpay is one of the easiest payment gateways to integrate:

• Razorpay is built for developers and comes with well-documented SDKs, RESTful APIs and plugins for all major platforms like WooCommerce, Shopify, Magento and more
• With options like Payment Pages and Payment Links, businesses can start using Razorpay even while the Payment Gateway integration is in the works, ensuring that your business is online and you are giving your customers a seamless payments experience 

5. It supports all business types

For big businesses or enterprises, getting onto the online payments bandwagon is relatively straightforward. But for smaller companies, the digital payments landscape can be difficult to navigate. The going gets tougher for individual businesses, homepreneurs and freelancers. 

Here’s how freelancers and individual businesses can use Razorpay:

• Individual businesses require only a PAN card and any one of Aadhar card or driving licence or voter ID, and in some cases a cancelled cheque to get started with Razorpay
• You can use Razorpay Payment Pages to showcase your brand and products without any design or tech effort required. We have several templates you can choose from and customize
• With Razorpay Payment Links, you can accept digital payments from our ePOS app by sending the link across to on social media, WhatsApp, email and SMS

Related Read: How to Get a Business Pan Card?

In conclusion

Choosing the best payment gateway for your business is not easy, but with a little bit of guidance, you can make the right choice. Making this choice with precise requirements in place is essential because you can’t keep changing a payment gateway. It is ideally a long-term association for your business. 

Signup with Razorpay today and find out how choosing the best payment gateway can help you grow your business. 

The post Factors to consider while choosing a payment gateway appeared first on Razorpay Learn.

For the rest of the world, Nidhi’s work-life seemed like a five-finger exercise, but little did they know about the problems she faced while collecting payments and creating GST compliant invoices.   

We, at Razorpay, have unriddled the puzzle for freelancers like Nidhi. We are proud to announce the launch of our much-awaited product – Razorpay for Unregistered Businesses, to help freelancers and unregistered businesses accept payments.

Whether you are a freelancer, teacher, boutique owner or a professional, now accepting payments is going to be easier than ever.

Razorpay Payment Links 

Irregular payment cycles from clients are one of the primary reasons that make freelancers re-think about their decision to choose a project. Also, they end up spending a ridiculous amount of time and money behind clients to follow up for unpaid dues. 

Today, most successful freelancers have a quick payment set up to get things started in the right direction and avoid any last-minute hick-ups. Razorpay’s Payment Links can help freelancers or unregistered businesses with a fast settlement or alternate payment option–you can create and share Payment Links for and provide flexibility to your clients.

Some of the key features are: 

• Accept payments anytime and anywhere directly from WhatsApp, Instagram, Facebook, SMS and more
• Send automatic reminders to accept payments
• Showcase your brand by customising the payment links

Razorpay Payment Pages

Branding is the magic potion that aids in the success of a business of any size. And for freelancers, this becomes more vital than ever. Almost every freelancer has a necessary social media presence, but the absence of technical prowess to strengthen their digital presence via websites and proper landing pages.   

Well, it doesn’t matter now. Empower your business with Razorpay Payment pages with complete online onboarding, minimum documentation, and start transacting within 2 minutes.

Whether you have a website or you don’t, whether you have an app or you don’t, you can still accept payments online through Payment Pages.

Some of the key features are: 

• Create beautiful pages for your brand in 5 minutes 
• Add Payment Page to your social media page and accept online payments instantly
• Go online with zero integration and tech efforts

Razorpay Invoices

Let’s clear the air, unregistered businesses and freelancers also come under GST laws. Freelancers must raise GST-ready invoices, and lack of knowledge around this space has become a real concern. 

With Razorpay’s Invoices, freelancers and unregistered businesses can create and send GST compliant invoices that your customers can pay online instantly. 

Some of the key features are: 

• Complete GST-compliant invoices
• Add GST, discounts and shipping details, all in one invoice 
• Customise and accept advanced payments in just one invoice
• Customise your invoice
  

To find out how much GST you must pay for your goods or services, simply use an online GST calculator.

Conclusion

Razorpay for unregistered business allows you to make better business decisions using insights from the real-time data and reports available on the dashboard. With no setup or maintenance fees and one of the lowest transaction charges in the industry, pay only when you get paid!

Currently, over 3,50,000 merchants are using Razorpay to accept and disburse both domestic and international payments. 

We are here to deliver. We are here to help you go the distance and leave a trail. We promise! 

                                        Suggested read: GST registration guide for freelancers 

The post Best Ways for Indian Freelancers to Receive Payments appeared first on Razorpay Learn.