Payment Settlement Policy

1. Purpose of This Policy

This policy explains how student payments are collected, processed, settled, and transferred to registered academies on the Swar Connect platform

2. Payment Settlement Policy

    1. Student pays course/fee amount through Razorpay inside Swar Connect.

    2. Payment is received in Swar Connect’s merchant account.

    3. After successful confirmation, the amount is added to the Academy Wallet.

    4. Swar Connect deducts 5% platform fee (excluding taxes).

    5. Remaining amount is settled to the academy’s bank account as per the settlement cycle.

3. Platform Fee Deduction

  • Swar Connect charges a 5% platform fee on every successful student payment.
  • This 5% deduction is exclusive of taxes.
  • Applicable taxes (GST) will be added only on the 5% fee, not on the academy’s earnings.
Example

Course Fee: ₹1,000 Platform Fee (5%): ₹50 GST on Platform Fee (18%): ₹9 Total Deduction: ₹59 Academy Receives: ₹941

4. Payment Gateway Charges

  • Razorpay charges approx. 1.8% – 2.3% per transaction.
  • These charges are separate and deducted by Razorpay, not by Swar Connect.
  • Razorpay’s deduction will reflect in the academy’s transaction report.
Item Amount
Course Fee ₹ 1,500
Swar Connect 5% Fee ₹ 75
GST on Swar Connect Fee ₹ 13.50
Razorpay Charges ₹ 30
Swar Connect Total Profit ₹ 88.50
Academy Receives ₹ 1,381.50

5. Settlement Cycle

Swar Connect follows a T+2 working days settlement cycle:

  • T = Transaction Day
  • +2 = Two working days

Bank holidays and Sundays are excluded.

6. Academy Wallet System

Each academy gets a dedicated Academy Wallet inside the app:

  • Shows total earnings
  • Shows deductions
  • Shows Razorpay charges
  • Shows settlement history
  • Shows pending settlements

Wallet balance is auto-updated after every successful payment.

7. Refund & Chargeback Handling

  • Refunds requested by students within the allowed period will be processed by Swar Connect.
  • If a refund is issued, the academy will not receive the amount.
  • If the academy has already received the settlement, the refunded amount will be adjusted in the next settlement.
  • Platform fee is not refunded unless the refund is due to a technical error.

8. Failed or Pending Payments

  • If a payment fails, no amount is added to the academy wallet.
  • If a payment is pending, it will be auto-updated once Razorpay confirms the status.
  • Academies will receive notifications for failed or delayed transactions.

9. Compliance & Verification

Before receiving settlements, academies must complete:

  • KYC verification
  • Bank account verification
  • PAN verification
  • Academy identity verification

This ensures secure and legal payouts.

10. Taxes & Legal Compliance

  • Swar Connect charges GST only on the 5% platform fee.
  • Academies are responsible for their own GST filings on their income.
  • Monthly invoices for platform fees will be provided to academies.

11. Dispute Resolution

For any payment-related issues:

  • Academy can raise a ticket via the app
  • Support team responds within 24 hours
  • Resolution is provided within 72 hours

12. Policy Updates

Swar Connect may update this policy with prior notice to academies. Continued use of the platform means acceptance of updated terms.