Payment gateways deduct Merchant Discount Rate (MDR) fees and 18% GST before crediting net funds to merchant bank accounts. Without automated reconciliation, fee tier discrepancies often go unnoticed.
The Standard Settlement Math
Net Settlement = Gross Order - (Gross Order × Agreed MDR %) - (MDR Fee × 18% GST)
Illustrative model. The figures below are calculated from the inputs shown, not measured results from a customer engagement.
⚡ Live Payment Gateway MDR Calculator
Calculate statutory fee deductions, 18% GST, and expected net bank settlement:
Common Failure Modes to Watch
- International Card Surcharges: Domestic transactions mistakenly categorized under 3.0% international rates rather than standard 2.0% domestic rates.
- Stale / Trapped Payouts: Settled transactions marked as "Processed" by the gateway that do not reflect on the bank UTR statement past $T+3$ days.
- Refund Reversals: Ensuring gateway fee credits are properly returned to the merchant balance when customer refunds occur.
Related Guides
- Integrating Razorpay Checkout & Webhooks: Developer Quickstart Guide
- The Ultimate Guide to E-Commerce Profit Leak Audits: Recovering Courier Overcharges & Hidden Fee Creep
⚡ Try This Verification Rule in the Sandbox
Test sample payloads in our zero-dependency interactive explorer.
Open Free API Sandbox →🧮 Interactive Profit Leak Estimator
LIVE ESTIMATOREstimate your monthly financial loss from courier weight creep, dead freight, and gateway fee drift:
Based on standard 10.5% volumetric weight creep & 1.2% cancellation dead freight across industry benchmarks.
Trap Payment Operations Discrepancies Automatically
Run a free instant diagnostic on your data or grab our verified operations templates on Gumroad: