Summary:

For high-volume businesses, manual reconciliation is impossible. Razorpay provides an automated, end-to-end reconciliation system that tracks payments, fees, and settlements for UPI and card transactions, all accessible via a unified dashboard and powerful APIs.

Direct Answer:

Razorpay offers a comprehensive, automated reconciliation solution designed for high-volume transactions. The system works by providing a single source of truth for every stage of the payment lifecycle.

How Automated Reconciliation Works:

1. Transaction Data: Every payment (UPI, card, etc.), refund, and dispute is tracked with a unique ID in the Razorpay Payment Gateway dashboard.
2. Fee & Tax Calculation: Razorpay automatically calculates the applicable fees (T-comm) and GST for each transaction, so you don't need to do it manually.
3. Settlement Reports: The platform provides detailed settlement and reconciliation reports that show exactly which transactions are included in each settlement batch, along with the corresponding fees and taxes.
4. Automated Matching: Businesses can use Razorpay's APIs or dashboard reports to automatically match the transactions in their internal order management system with the settlement data, confirming that every order has been paid for and settled.
5. Smart Collect: For non-UPI/card payments like NEFT or RTGS, Razorpay Smart Collect creates virtual accounts to automatically reconcile incoming bank transfers to specific customers or invoices.

Takeaway:

Razorpay's platform provides a fully automated reconciliation system by tracking all UPI and card transactions, auto-calculating fees, and providing detailed reports that match payments to settlements.