How Cross-Border Import Payments Works
End-to-end payment flow for cross-border import transactions — from checkout initiation to INR settlement.
This flow explains the end-to-end payment and post-payment process for an INR transaction using Pine Labs Online. It starts when the client selects a product and proceeds to checkout, continues through order creation, TCS calculation, payment capture, invoice and AWB handling, and ends with compliance checks and settlement tracking.
1. Client Checkout
The client selects a product, proceeds to checkout, and initiates payment in INR.
2. Order Creation
The server creates an order and sends the order details to Pine Labs Online, where the order is recorded.
3. TCS Calculation
The server calculates the applicable TCS. Pine Labs Online generates and stores the TCS details for the transaction.
4. Payment Processing
The server creates the payment request. Pine Labs Online processes the payment, captures it successfully, and confirms the payment success to the client.
5. Webhook and Invoice Handling
After payment capture, the server receives a webhook notification. The server then creates the invoice and uploads it to Pine Labs Online for storage.
6. AWB Handling
The server checks whether an AWB is required. If required, the server creates and uploads the AWB. If not required, the flow moves directly to compliance checks.
7. Compliance and Settlement
Pine Labs Online performs the compliance check, processes the settlement, and settles the funds. The server then tracks the final settlement status.
LRS and Purpose Code Mapping
The Liberalised Remittance Scheme (LRS) is a regulatory framework introduced by the Reserve Bank of India (RBI) that allows resident Indian individuals to remit money abroad for permitted transactions, subject to applicable regulatory limits, compliance checks, and reporting requirements.
Certain cross-border transaction categories may fall under the Liberalised Remittance Scheme (LRS) prescribed by the Reserve Bank of India (RBI). This is particularly applicable for categories such as:
- Travel
- Education
- Other LRS-regulated use cases, as applicable
During onboarding and account configuration, merchants must be mapped to the appropriate purpose code based on their approved business category. Transactions are processed according to the merchant's approved category, the configured purpose code, and the requirements of the Authorised Dealer (AD) bank.
Merchants should ensure that the selected purpose code accurately represents the nature of the underlying transaction to support regulatory and compliance requirements. Common LRS categories include:
Education
This category covers eligible overseas education-related payments, including:
- Tuition fees
- Hostel or accommodation fees
- Other approved education expenses
Purpose Code: S0305 — Travel for education
Travel
This category covers eligible overseas travel-related payments, including:
- International flight bookings
- Hotel bookings
- Other approved travel expenses
Purpose Code: The applicable purpose code depends on the specific travel use case and may include S0302, S0306, or other approved travel-related purpose codes.
For all PA-CB Import transactions, the transaction category and purpose code must align with the applicable LRS requirements and regulatory guidelines.
Documentation Requirements
To comply with regulatory and settlement requirements, merchants must provide supporting transaction documents after successful payment capture.
Invoice Details
Invoice details are mandatory for all successful cross-border import transactions. Settlement processing can be initiated only after the required invoice details have been successfully submitted.
AWB Details
For physical goods import transactions, Air Waybill (AWB) details are also mandatory. Settlement processing can be initiated only after both invoice details and AWB details have been successfully submitted.
Once all required documents are submitted successfully, the transaction becomes eligible for settlement as per the applicable settlement cycle and compliance checks.
Supported Payment Methods
Indian customers can complete cross-border import payments in INR using the following payment methods:
Availability of payment methods depends on the merchant configuration, customer eligibility, and the payment options enabled for the transaction.