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)
⚡ Live Payment Gateway MDR Calculator
Calculate statutory fee deductions, 18% GST, and expected net bank settlement:
MDR Fee: ₹49.98 • GST (18%): ₹9.00 • Net Bank Payout: ₹2,440.02
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.
⚡ Try This Verification Rule in the Sandbox
Test sample payloads in our zero-dependency interactive explorer.
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