Payment Gateway Questions & Answers

When your accounting package starts handling high-value education fee payments through UPI, a few critical settlement and ledger rules need to be updated to ensure that the receipts post correctly and remain compliant with both UPI and audit standards.

First, you need to separate your UPI settlement accounts by transaction tier. High-value education fee payments (₹1 lakh–₹5 lakh range) often follow a different settlement route from regular low-value payments, depending on your PSP or acquiring bank. Update your rules so that receipts above ₹1 lakh are automatically posted to a High-Value UPI Clearing Account instead of the general UPI Receipts ledger. This prevents reconciliation mismatches later, especially if settlements for larger transactions are batched differently by the payment gateway.

Next, enable dynamic ledger mapping based on payment mode and purpose code. Education fee transactions usually fall under a specific NPCI purpose code (like EDU), so your accounting package should automatically tag those receipts with the correct code and post them to a Tuition Fees Income or

Education Revenue account, instead of a generic UPI Collections ledger. This not only simplifies audits but also ensures that GST classification remains accurate when generating e-invoices.

You should also update settlement timing rules. High-value UPI transactions can sometimes have delayed settlements, for example, if the payment gateway or bank enforces additional verification steps. Configure your accounting system to mark these receipts as Pending Settlement until confirmation from the PSP API is received. Once confirmation arrives, an automated journal entry should move the amount from UPI Clearing to Cash at Bank.

Additionally, make sure your chargeback and refund rules recognize high-value receipts separately. For instance, if a parent pays ₹4 lakh via UPI and later requests a refund, the refund workflow should be routed through the same high-value refund path, ensuring that reversal entries are logged under the same ledger and audit trail.

Finally, if you’re running multiple education branches or fee categories, consider branch-wise and category-wise posting. High-value UPI receipts should be split according to the respective fee type, tuition, hostel, exam fees, etc. with automated ledger mapping.

When a customer hits the UPI transaction cap in your ERP finance module during a travel booking checkout, especially for high-value itineraries like international flights or group packages, the system should automatically suggest fallback payment methods that keep the booking flow smooth and reduce drop-offs. The key is to provide instant alternatives that align with user convenience, transaction reliability, and accounting accuracy.

The first fallback should be net banking through linked partner banks or payment aggregators. Since most travelers already use internet banking for large transactions, the ERP module can display a one-click redirect to bank login pages. This works well for payments above ₹1 lakh, which often exceed the UPI per-transaction limit.

Next, offer debit and credit card options, especially those supporting EMI or credit-on-demand models. For travel payments, EMI can be a strong retention tool, customers are less likely to abandon checkout if they can spread payments across months. Make sure your ERP module supports automated reconciliation by mapping card gateway settlement IDs to travel booking reference numbers.

A third fallback is NEFT/RTGS bank transfer. This method is particularly useful for corporate or bulk travel bookings that cross UPI daily caps. When UPI fails mid-checkout, your ERP can automatically display beneficiary details (account number, IFSC, payment reference) for manual transfers. To make the experience smoother, your ERP can also accept proof of transfer upload (like UTR ID or screenshot) and flag the booking as Pending Confirmation until the payment hits your bank account.

For high-trust users or regular corporate clients, enabling a wallet or prepayment balance option can also help. This allows customers to load funds in advance and instantly complete travel bookings even if UPI or card limits are hit.

Finally, for critical or last-minute bookings, like urgent flight reservations, your ERP module could recommend a pay-later integration (like Simpl, Lazypay, or in-house credit limits). This ensures the booking isn’t lost due to a temporary payment cap.

Your payment gateway integration should:

• Create a separate high-value UPI settlement batch (T+1 or longer).
• Add a dedicated ledger account for UPI – High Value Travel.
• Include full reference data (UPI/PSP/settlement IDs) in posting payloads.
• Handle partial settlements with split entries.
• Align refund/chargeback reversals with the correct high-value ledger.

These updates make sure high-value UPI travel payments are posted cleanly, reconciled accurately, and compliant with both PSP and RBI reporting standards, while keeping your finance team’s month-end close headache-free.

First, ensure your billing engine captures the UPI transaction reference ID (UTR or UPI Ref ID) returned from the payment gateway or PSP. This field is usually available in the callback of the payment confirmation. For example, this may be provided under upi_txn_ref or bank_rrn. Store this ID in your payment records against the corresponding invoice or booking ID. Once stored, it can be dynamically inserted into the e-invoice generation workflow.

While generating the GST e-invoice JSON-just before PDF rendering-include UPI reference under the Payment Details section PayDtls as part of PayRefNo or as an extension field like AdditionalPaymentInfo. This will ensure that the UPI reference remains within the official invoice data being submitted to IRP. Once IRP has completed validation and generated the IRN, your system can retrieve it for populating the PDF version of the invoice.

In the GST e-invoice PDF format, include a separate section titled Payment Information or UPI Transaction Details at the bottom of the invoice, just below the payment summary or QR code. This should contain:

• Payment Mode: UPI
• UPI Reference ID: e.g. 1234567890@upi or UTR number
• Payment Date & Time: From payment confirmation timestamp
• Bank Name (Optional): Issuing or acquiring bank if available

If you’re embedding the dynamic QR code for compliance with GST—according to CBIC guidelines about B2C invoices—ensure that your UPI reference ID is not confused with the QR payment payload. The QR should contain standard invoice parameters, which include supplier GSTIN, IRN, and total amount, while the UPI reference appears as part of the payment confirmation details post-transaction.

Lastly, ensure that your billing engine exports these PDFs with tamper-proof metadata. Include digital signing or watermarking features to mark the invoice as IRP-validated and paid via UPI.

Create a new permission set that grants access only to the newly added CRM tabs.

Assign tab visibility = Default Off for all users and Default On only for specific roles or profiles.

Remove tab access from broad permission sets to keep visibility limited and role specific.

If your accounting package processes education fee payments via UPI, it should be smart enough to handle situations where a transaction hits the UPI limit mid-checkout, typically ₹1 lakh for most banks, even though verified education merchants can accept up to ₹5 lakh. Since many parents still use banks that haven’t rolled out the higher cap yet, the system needs to gracefully recommend fallback options rather than letting the transaction fail.

The first fallback method your accounting package should suggest is NetBanking (IMPS/NEFT). It’s the most stable option for large payments and has no per-transaction cap issues like UPI. When the UPI API returns an error such as limit exceeded or amount not allowed, the software can automatically display a message like, Your bank’s UPI limit is ₹1,00,000. Try completing your payment via NetBanking instead. A one-click redirect to the bank payment flow keeps the user experience smooth.

The next fallback is debit or credit card payments, since cards usually support higher single transactions (₹5L+ depending on the bank). Integrating card payments through your PSP (like Razorpay, Cashfree, or PayU) ensures users can complete large education fee payments instantly with minimal disruption.

If your system supports it, you can also offer a Split UPI Payment option. When the user enters an amount higher than the allowed cap, your accounting tool could automatically suggest dividing it into multiple UPI payments, for example, splitting a ₹2L invoice into two ₹1L transactions under the same invoice reference. This is particularly helpful for school fees or university admissions, where large one-time payments are common.

For higher-value transactions, offering payment links or EMI options is another good fallback. You can generate a link for the remaining balance via NetBanking or card and send it by email or SMS. Some PSPs also allow EMI-based payment plans, which can help parents manage bigger fee amounts without hitting transaction limits.

Lastly, your accounting package should include a clear in-app message explaining why the UPI payment failed and what options are available next. Something as simple as UPI limits vary by bank, try NetBanking or Card for faster processing can reduce confusion and support calls dramatically.

In short, your billing software should:

• Detect over-limit UPI amounts automatically
• Split them into smaller, sequential payments
• Link them under one booking ID
• Combine them in reconciliation
• Provide clear UI feedback and retry options

This kind of split-payment automation keeps your travel UPI checkout seamless, even for high-value bookings that exceed standard UPI caps.

Update your POS system to:

• Route high-value UPI receipts to a dedicated clearing account
• Use travel-specific purpose codes for ledger mapping
• Hold receipts in Pending Settlement until PSP confirmation
• Mirror refund and reversal logic under the same ledger rules
• Auto-split revenue among travel suppliers
• Flag delayed settlements for manual review

With these updates, your POS system will record high-value UPI travel payments accurately, stay audit-ready, and ensure your daily settlements line up perfectly with your PSP and bank reports.

To validate category-wise UPI limits post–September 15, 2025, your payment gateway integration should:

• Maintain an up-to-date category-to-limit mapping based on NPCI/PSP data.
• Perform pre-validation before every UPI request using that mapping.
• Use bank APIs to check eligibility for higher limits when applicable.
• Return clear structured responses to the ERP or app layer if a cap is hit.
• Log all validations for audit and compliance.

This setup ensures your gateway handles UPI caps intelligently, preventing failed payments, guiding users transparently, and staying fully compliant with the new NPCI category-wise transaction rules.

Finance teams should enable:

• Daily aggregate UPI usage alerts (to watch total collection volume).
• High-value UPI receipt alerts (to flag ₹1L+ transactions).
• Failure rate alerts (to detect PSP or network issues).
• Bank-wise cap alerts (to track per-bank UPI behavior).
• Settlement delay alerts (for pending high-value credits).

Together, these alerts keep your travel payments flow stable, give early warning before UPI caps hit, and make sure large transactions are tracked and reconciled properly, all without your finance team needing to manually dig through reports every day.