Payment Gateway Questions & Answers

If your reconciliation tool is handling UPI collections for term deposit openings (FDs), you really want those payments tagged with the right purpose code — otherwise, your audit trail turns into spaghetti.

Here’s how to do it without overcomplicating your system:

• Add a purpose code field to every incoming UPI transaction

When your system parses PSP or NPCI settlement files, include a column for purpose codes.

If you’re generating the UPI collect request yourself, you can also tag it in the payload (many gateways support this).

Example:

purpose_code: TDOP

Here, TDOP = Term Deposit Opening Payment.

• Maintain a small internal mapping table

Keep a lookup that maps product categories → purpose codes.

When reconciliation runs, match the incoming payment to the category (based on metadata or account it hit) and auto-assign the right code.

• Write it into your ledger and export files

In your ledger entries, include the purpose code as a column or tag.

This lets auditors filter only FD-related receipts instantly.

• Push the code to your GST and accounting exports

When your reconciliation tool pushes data to your accounting package or GST e-invoice system, include the purpose code as part of the Payment

Details section:

Payment Mode: UPI

Purpose Code: TDOP (Term Deposit Opening)

UPI Ref ID: 324915674382

That gives traceability from PSP → ledger → GST filing.

• Validate the tagging logic

If your reconciliation logic ever sees a UPI payment hit a Term Deposit account but no purpose code attached — flag it.

This catches untagged or misrouted collections early.

If your SaaS invoicing tool handles UPI payments for term deposit (FD) openings, you really need to monitor daily UPI inflows, both for compliance and to avoid hitting PSP caps.

It’s not about tracking each payment, it’s about spotting when total UPI volume or value starts spiking.

Here’s what to set up:

• Daily Aggregate Value Alert

Trigger an alert when total UPI receipts for term deposits cross a set threshold (say ₹50 L or ₹1 Cr per day).

Why:

Banks and PSPs impose soft caps on total daily inflows for high-value UPI handles. Crossing that cap could delay settlements or block new payments.

• Transaction Volume Spike Alert

Set a rule for when total number of UPI transactions jumps by, say, 30–50% vs. average.

Why:

A sudden increase could mean automation bugs (duplicate posting) or customer retries due to PSP failures.

• High-Value Receipt Alert

Alert on any single UPI payment above ₹1.5L–₹2L.

Why:

UPI caps vary by bank, and if you’re receiving unusually large payments, that’s worth a quick check before settlement files bounce.

• Pending Settlement Alert

Every day, compare UPI Success count vs. UPI Settled count from NPCI files.

Alert if pending settlements > 5% of daily volume.

Why:

That usually means a mismatch in your ledger or delayed RRN posting.

• Partner-Wise Cap Tracker

Track UPI usage per partner bank or VPA (e.g., icicibank@upi, hdfcbank@upi).

Alert if:

Total inflows for any partner > 80% of their assigned daily limit.
That gives ops teams time to route new deposits via another partner.

• Reversal or Refund Spike Alert

Monitor sudden increases in reversed or refunded RRNs.

Why:

Could mean failed FD creations, PSP instability, or a problem with split payments.

• UPI Failure Rate Alert

If failure rate (failed RRNs ÷ total attempts) exceeds 10–15% in a day, alert finance + tech teams.

Why:

Might indicate PSP downtime or broken UPI intents.

Pull RRN from PSP → link to invoice → add to the Payment Details section in GST PDF → include it in the PayDet JSON block → handle split payments gracefully.

That way your reconciliation logs, GST filing, and audits all speak the same language the RRN.

If your app lets users open term deposits (FDs) using UPI, your finance/recon team needs to watch a few key signals daily so you don’t get stuck when the PSP or bank-level caps hit mid-day.

Here’s what you should absolutely track:

• Daily UPI Usage Thresholds

Keep a live dashboard or alert when your total daily inflows via UPI are nearing the cap.

Think of it like a fuel gauge if you hit the cap, new deposit transactions will just start failing.

• Volume vs Value Anomalies

Sometimes your volume spikes but total value doesn’t that’s a red flag.

Means customers are retrying or your system’s posting is off.

Example alert: UPI inflow count ↑30% vs yesterday but total ₹ value ↓20%.

• Split Payment Watch

Users might try to split ₹2L+ deposits into smaller chunks to bypass limits.

Track how often that happens.

Alert: >25% of deposits >₹1L processed as multiple UPI transfers.

• Failed Payment + Retry Loop

When caps are hit, you’ll suddenly see ‘Limit Exceeded’ or ‘Txn Not Allowed’ errors.

Useful alerts:

• More than 50 failures for ‘Limit Exceeded’ in last 1 hour
• Customer retried same FD with same UPI ID 3+ times

When this triggers, your app should auto-suggest IMPS/NetBanking instead.

• Settlement vs Ledger Mismatch

UPI receipts come in from NPCI, but sometimes they don’t post to the core banking system.

Alert: NPCI inflow ≠ deposit ledger total for today.

You’d be shocked how often this happens after a PSP maintenance window.

• Refund/Reversal Volume

If UPI inflows get blocked, refund rates shoot up. Track it.

Alert: Refunds >5% of daily UPI volume or refund delays > T+1 day.

• Customer-Level UPI Cap

NPCI also limits per-user daily UPI volume.

If someone tries to open multiple FDs using the same UPI ID, you’ll hit that.

Alert: Customer’s UPI inflow ≥ ₹2L today.

Helps avoid auto-debit failures.

• PSP/Bank Channel Saturation

Sometimes one PSP (like PhonePe) hits its throughput limit while others don’t.

Alert: Google Pay inflows suspended by PSP reroute users to alternate UPI handle.

If your SaaS invoicing tool handles UPI payments for term deposit (FD) openings, you really need to monitor daily UPI inflows both for compliance and to avoid hitting PSP caps.

It’s not about tracking each payment it’s about spotting when total UPI volume or value starts spiking.

Here’s what to set up:

• Daily Aggregate Value Alert

Trigger an alert when total UPI receipts for term deposits cross a set threshold (say ₹50 L or ₹1 Cr per day).

Why:

Banks and PSPs impose soft caps on total daily inflows for high-value UPI handles. Crossing that cap could delay settlements or block new payments.

• Transaction Volume Spike Alert

Set a rule for when total number of UPI transactions jumps by, say, 30–50% vs. average.

Why:

A sudden increase could mean automation bugs (duplicate posting) or customer retries due to PSP failures.

• High-Value Receipt Alert

Alert on any single UPI payment above ₹1.5L–₹2L.

Why:

UPI caps vary by bank, and if you’re receiving unusually large payments, that’s worth a quick check before settlement files bounce.

• Pending Settlement Alert

Every day, compare UPI Success count vs. UPI Settled count from NPCI files.

Alert if pending settlements > 5% of daily volume.

Why:

That usually means a mismatch in your ledger or delayed RRN posting.

• Partner-Wise Cap Tracker

Track UPI usage per partner bank or VPA (e.g., icicibank@upi, hdfcbank@upi).

Alert if:

Total inflows for any partner > 80% of their assigned daily limit.

That gives ops teams time to route new deposits via another partner.

• Reversal or Refund Spike Alert

Monitor sudden increases in reversed or refunded RRNs.

Why:

Could mean failed FD creations, PSP instability, or a problem with split payments.

• UPI Failure Rate Alert

If failure rate (failed RRNs ÷ total attempts) exceeds 10–15% in a day, alert finance + tech teams.

Why:

ight indicate PSP downtime or broken UPI intents.

If your POS (like a school’s front-desk billing or fee collection terminal) accepts UPI payments, you absolutely need to push the UPI Reference ID (RRN or UPI Txn ID) into the GST e-invoice PDF, both for audit and GST return matching.

Here’s the clean way to do it:

• Capture the right UPI field from the PSP

Every successful UPI payment response contains a unique reference ID, usually under one of these keys depending on your PSP:

upi_txn_id: 231015672345,

rrn: 324512378912,

txn_reference: HDFC12345UPI

Make sure your POS stores this value in your payment table alongside the invoice number, like:

invoice_no | payment_mode | upi_ref_id

FE2025-0923 | UPI | 231015672345

• Map it into the e-invoice JSON schema

The GST e-invoice format already has a section for Payment Details:

PaymentDet: {

PayMode: UPI,

FinInsBr: HDFC Bank,

PayInstr: 231015672345,

PayTerm: Full,

PayInstrDt: 2025-10-28

}

Here, PayInstr is where your UPI reference ID goes — that’s the field most ERP and GST tools recognize when generating the final PDF.

• Modify your PDF template

If your POS auto-generates PDFs, just add a small Payment Reference block under the payment summary section:

Payment Mode: UPI

Reference ID: 231015672345

Bank: HDFC Bank

That’s all GST auditors need to trace the UPI transaction back through NPCI or the PSP.

• Validate before export

Always check that:

• The UPI ID is alphanumeric and 12–20 chars long
• The transaction status = SUCCESS
• It’s linked to the same invoice date

This avoids junk data creeping into e-invoices or IRN rejections during filing.

• Sync with your accounting / ERP

When you push invoices to Tally, Zoho Books, or your ERP, include the same upi_ref_id field in your payment ledger. That keeps reconciliation super easy later, especially when you pull settlement reports from Razorpay, Cashfree, etc.

To test refunds and chargebacks for term deposit UPI payments under new limits:

• Cover both within-limit and over-limit refund scenarios
• Retain purpose code INVS_TD in refund payloads
• Verify ledger impact and settlement file matching
• Simulate timeout, duplicate, and delayed chargebacks
• Ensure daily UPI caps remain compliant even after reversals

To test refunds and chargebacks for term deposit UPI flows in your ERP finance module:

• Simulate various refund sizes around the ₹10L cap.
• Validate purpose code tagging (TDOPEN).
• Test fallback routing (NEFT/RTGS when limits reached).
• Ensure ledger reversals post correctly.
• Trigger alerts on refund or chargeback anomalies.

To test refunds and chargebacks for FD openings under new UPI caps:

• Simulate pre- and post-settlement refunds.
• Verify RRNs are linked correctly.
• Ensure refunds don’t count as inflows.
• Test refund behavior when PSP/bank caps are hit.
• Always reconcile with NPCI files (R-17, R-19, R-22).

When the UPI system starts supporting higher-value credit card bill payments, your reconciliation software can’t just treat those as normal UPI inflows the amounts, timing, and audit requirements change. You’ll need to tweak your settlement and ledger rules to make sure those receipts are matched and posted correctly.

Here’s what you should update:

• Create category-based reconciliation buckets:

Set up a new reconciliation rule specifically for UPI – Credit Card Bill Payments. Don’t merge it with generic UPI collections. This allows your system to compare each receipt against NPCI’s category-wise settlement files or PSP reports more accurately.

• Adjust for delayed or split settlements:

High-value UPI transactions might settle across multiple windows or even days. Update your reconciliation logic to allow T+1/T+2 settlement matching instead of assuming same-day clearance. Also, group split transactions (due to per-transaction caps) under one parent settlement batch ID.

• Use UPI reference + purpose code as match keys:

For large payments, matching just by amount and date isn’t reliable. Add NPCI’s purpose code (e.g., P1003 for credit card bills) and the UPI reference ID as composite keys in your matching logic. This helps prevent mismatched or duplicate entries during reconciliation.

• Update clearing and final ledger mapping:

Route high-value receipts first into a UPI Clearing – Credit Card Bill Payments ledger. Move them to the main Credit Card Bill Receipts account only after settlement confirmation. This mirrors how NEFT/IMPS high-value payments are reconciled in banking.

• Introduce reversal-handling logic:

If an over-limit attempt or timeout triggers an automatic reversal, your reconciliation engine should pick it up and post it as a debit entry against the same clearing ledger, referencing the original UPI transaction ID. This prevents open items in reports.

• Flag out-of-band settlements:

Occasionally, PSPs might batch-settle high-value UPI transactions separately from regular ones. Set up a rule to detect and flag those for manual review (e.g., Settlement received but not matched within 48 hours).

• Maintain audit traceability:

Every reconciled entry should retain metadata like UPI purpose code, payer VPA, and timestamp. This ensures your audit logs can prove compliance with NPCI’s category-wise cap reporting requirements.