Integration Architecture and Data Flow

Core Integration Components

The Razorpay-Odoo integration operates on a distributed event-driven architecture. Odoo 18’s payment acquirer module serves as the foundation, providing the core framework for payment processing. This module handles transaction initiation, status management, and financial reconciliation. The Razorpay API acts as the payment gateway, processing card transactions, UPI payments, and net banking requests. A dedicated webhook endpoint in Odoo receives asynchronous payment confirmations from Razorpay’s servers.

Your integration must manage bidirectional data flow between these systems. The customer initiates a payment through the Odoo website or sales portal. Odoo creates a transaction record and redirects the customer to Razorpay’s payment page. Razorpay processes the payment and sends a success or failure response. Simultaneously, Razorpay dispatches a webhook event to your Odoo instance with detailed payment verification data. This dual-confirmation system ensures transaction integrity.

Payment Flow Sequence

The transaction sequence begins when a customer selects Razorpay as their payment method. Odoo generates a unique transaction ID and creates a payment request to Razorpay’s Orders API. This API call includes the amount, currency, customer details, and callback URLs. Razorpay returns a payment ID that Odoo stores for future reference. The customer completes the payment on Razorpay’s secure hosted page.

Following payment completion, Razorpay redirects the customer back to Odoo’s return URL. Odoo immediately queries Razorpay’s Payments API to verify the transaction status. This synchronous check provides instant user feedback. Meanwhile, Razorpay sends a separate webhook request to Odoo’s designated endpoint with comprehensive payment details. This asynchronous verification serves as the system of record for payment confirmation.

Data Synchronization Patterns

The integration employs multiple synchronization strategies for different data types. Payment transactions use real-time webhook notifications for immediate processing. Settlement data follows a daily batch synchronization pattern, where Odoo fetches the previous day’s payout information. Refund operations require bidirectional synchronization, with Odoo initiating refunds and Razorpay confirming their processing.

Your architecture must handle network partitions and service outages. Implement idempotent webhook handlers that process duplicate events without creating duplicate records. Store Razorpay payment IDs as unique constraints in your Odoo transaction tables. Design your settlement reconciliation to handle partial data and correction entries. These patterns ensure financial data consistency across both platforms.

Step-by-Step Configuration

Razorpay Account Configuration

Begin with your Razorpay merchant dashboard configuration. Log into your Razorpay account and navigate to the Settings section. Access the API Keys page and generate new API keys for your Odoo integration. The test mode keys allow safe development, while live keys process real transactions. Store the key_id and key_secret in a secure location for Odoo configuration.

Configure your Razorpay webhooks to point to your Odoo instance. In the Razorpay dashboard, navigate to Webhooks under the Settings menu. Create a new webhook endpoint with your Odoo server’s base URL followed by ‘/payment/razorpay/webhook’. Select these essential events: payment.authorized, payment.captured, payment.failed, and refund.created. Razorpay will send POST requests to this endpoint for all selected payment events.

Enable required payment methods in your Razorpay account based on your business needs. Activate credit cards, debit cards, UPI, net banking, and popular wallets. Configure payment capture settings to either automatic or manual mode based on your business workflow. Automatic capture immediately processes payments, while manual capture allows order verification before fund transfer.

Odoo Payment Acquirer Setup

Install the payment_razorpay module in your Odoo 18 instance. Navigate to the Apps menu and search for “Razorpay” or install it via command line. The module extends Odoo’s payment provider framework with Razorpay-specific functionality. Enable developer mode in Odoo to access advanced configuration options for payment providers.

Create a new Razorpay payment acquirer in Odoo. Go to Invoicing → Configuration → Payment Acquirers and create a new record. Select Razorpay as the provider type. Enter your Razorpay API credentials in the corresponding fields. Configure the return URLs for successful and failed payments. These URLs direct customers back to your Odoo website after payment completion.

Set the webhook endpoint in your Odoo configuration. The system generates a unique webhook URL for your Razorpay configuration. Copy this URL to your Razorpay webhook settings. Odoo signs all outgoing webhook requests with a secret key for verification. Store this signature secret in your Razorpay webhook configuration for request validation.

Environment-Specific Configuration

Configure separate settings for your development, staging, and production environments. Use Razorpay test mode keys for development and staging instances. Create environment-specific configuration files that store API credentials and webhook secrets. Implement different base URLs for webhook endpoints across environments to prevent cross-environment event processing.

Set appropriate payment method restrictions based on your target market. Disable payment methods not relevant to your customer base to simplify the checkout experience. Configure country-specific payment options through the Razorpay dashboard and mirror these settings in Odoo. Implement currency mapping between your Odoo company settings and Razorpay’s supported currencies.

Establish transaction fee handling in your Odoo configuration. Determine whether your business absorbs Razorpay transaction fees or passes them to customers. Configure fee calculation in the payment acquirer settings. Implement proper accounting journal entries to track payment processing costs separately from product revenue.

Code Implementation Details

Extend the PaymentProvider class in Odoo to implement Razorpay-specific methods. Override the _get_default_payment_method_codes method to return Razorpay-compatible payment types. Implement the _razorpay_make_request method to handle API communication with proper error handling and logging.

Create the payment form rendering method that generates the Razorpay checkout interface. This method injects the necessary JavaScript SDK and initializes the payment flow. Implement the form submission handler that processes the Razorpay response and updates the transaction status in Odoo.

Develop the webhook controller that handles Razorpay’s POST requests. This controller must verify the webhook signature before processing any data. Implement idempotent processing to handle duplicate webhook deliveries. Create proper error logging and notification for failed webhook processing attempts.

Common Configuration Issues

Address frequent configuration problems that disrupt the integration. Webhook verification failures often stem from incorrect signature secrets or mismatched URLs. Test your webhook endpoint using Razorpay’s webhook simulator before going live. Payment redirect errors commonly result from improper return URL configuration in both systems.

API authentication errors typically indicate incorrect key_id or key_secret values. Verify your API keys correspond to the correct environment mode. Currency mismatch errors occur when Odoo tries to process payments in currencies not enabled in your Razorpay account. Ensure currency support alignment between both platforms.

Transaction amount discrepancies often stem from rounding differences or currency conversion. Implement precise decimal handling in your amount calculations. Test with various amount values to identify rounding issues before production deployment.

Data Mapping and Transformation

Payment Transaction Mapping

Establish precise field mapping between Razorpay payment objects and Odoo account.move records. Map the Razorpay payment_id to Odoo’s transaction reference field for cross-system identification. Transform Razorpay’s amount field from paise (Indian subunit) to your Odoo currency units. Handle currency conversion for international payments based on real-time exchange rates.

Map Razorpay’s payment status to Odoo’s transaction states. Transform ‘captured’ to ‘done’, ‘authorized’ to ‘authorized’, and ‘failed’ to ‘error’. Handle edge cases like ‘refunded’ and ‘partially_refunded’ by creating corresponding refund records in Odoo. Implement status synchronization to resolve discrepancies between the systems.

Process customer information from Razorpay’s contact object to Odoo’s res.partner model. Extract email and phone fields for customer identification and communication. Create new partner records when transactions originate from unknown customers. Update existing customer records with payment method information for future transactions.

Order and Invoice Synchronization

Link Razorpay payments to Odoo sales orders and invoices through reference mapping. Store Odoo invoice numbers in Razorpay’s notes field during payment creation. Extract these references during webhook processing to associate payments with correct invoices. Implement fallback matching using amount and customer email when references become missing.

Handle partial payments and installment scenarios through careful amount tracking. Create multiple payment transactions for a single invoice when customers use split payment methods. Implement proper allocation logic to ensure invoice payment status reflects the actual collected amount. Track pending amounts for future payment collection.

Manage refund operations with bidirectional synchronization. When Odoo creates a refund, initiate a corresponding refund in Razorpay through their Refunds API. Capture the Razorpay refund ID and link it to the Odoo account.move reversal record. Handle partial refunds by creating proportional transaction records in both systems.

Settlement and Reconciliation Data

Transform Razorpay settlement data into Odoo bank statement lines. Map settlement IDs to statement line references for audit trail purposes. Process settlement amounts after deducting Razorpay fees into your bank account records. Handle multi-currency settlements by applying appropriate exchange rates on settlement dates.

Reconcile settled payments with original transactions using Razorpay payment IDs as the correlation key. Implement automatic matching based on transaction references and amounts. Create reconciliation rules for handling bank charges and processing fees separately from principal amounts. Flag unmatched transactions for manual review and resolution.

Process correction entries and adjustments from Razorpay settlements. Handle scenarios where Razorpay corrects previous settlement amounts due to chargebacks or disputes. Create adjustment journal entries in Odoo that clearly identify the reason for the correction. Maintain complete audit trails of all settlement modifications.

Webhook Data Processing

Transform Razorpay webhook payloads into Odoo payment transactions. Extract the essential payment data from the nested event structure. Verify payload integrity using the Razorpay-Signature header before processing. Implement idempotent processing by checking for existing transactions with the same webhook event ID.

Handle webhook retries and duplicate deliveries through proper idempotency keys. Store processed webhook event IDs to prevent duplicate transaction creation. Implement exponential backoff for webhook processing failures to avoid overwhelming your system with retry attempts. Create dead-letter queue handling for persistently failing webhooks.

Process asynchronous payment confirmations that arrive after customer redirects. Handle race conditions between synchronous payment status checks and webhook deliveries. Implement proper transaction locking to prevent duplicate order fulfillment. Update order status based on the most reliable payment confirmation source.

Error Handling and Resilience

API Communication Errors

Handle Razorpay API rate limiting with exponential backoff retry logic. Implement circuit breaker patterns to prevent cascading failures during Razorpay service outages. Store failed API requests in a queue for later processing when the service recovers. Log API errors with sufficient context for debugging without exposing sensitive data.

Manage network timeouts and connection failures with appropriate retry strategies. Set conservative timeout values for API calls to prevent blocking your Odoo workers. Implement asynchronous processing for non-critical operations like receipt generation and notification emails. Use background jobs for operations that don’t require immediate user feedback.

Process API response validation failures by logging the unexpected data structure. Implement schema validation for all Razorpay API responses before processing. Reject malformed responses and trigger alerts for investigation. Maintain compatibility with multiple Razorpay API versions through careful response handling.

Payment Processing Failures

Handle payment authorization failures by analyzing the error code from Razorpay. Map common error codes like ‘BAD_REQUEST’ and ‘SERVER_ERROR’ to user-friendly messages. Implement smart retry for temporary failures like network issues. Block retry for permanent failures like invalid card numbers.

Process webhook verification failures by rejecting unverified requests immediately. Log verification failures with client IP information for security monitoring. Implement rate limiting on webhook endpoints to prevent denial-of-service attacks. Create alerts for repeated webhook verification failures from the same source.

Manage payment capture failures for authorized payments. Implement retry mechanisms for capture operations that fail due to temporary issues. Handle insufficient fund scenarios by notifying customers and providing alternative payment methods. Create expiration handlers for authorized payments that never complete capture.

Data Synchronization Issues

Resolve transaction state conflicts between Odoo and Razorpay. Implement reconciliation procedures to identify and resolve status mismatches. Create manual intervention workflows for transactions that require human review. Develop automated correction scripts for common synchronization problems.

Handle missing webhook events through periodic synchronization jobs. Query Razorpay for payments that lack confirmation in Odoo. Process these payments with appropriate status based on their current state in Razorpay. Implement gap detection to identify missing payment events in your webhook processing pipeline.

Manage refund synchronization failures that create financial discrepancies. Implement bidirectional refund status checks to ensure consistency. Create manual resolution procedures for refunds that fail to synchronize properly. Develop compensation mechanisms for customers affected by refund processing failures.

System Recovery Procedures

Implement disaster recovery for payment data loss scenarios. Create regular backups of payment transaction data and webhook processing logs. Develop restoration procedures that rebuild payment state from Razorpay API data. Test recovery procedures regularly to ensure business continuity.

Handle database rollback scenarios without losing payment information. Implement compensating transactions for failed business processes. Create audit trails that track all payment state changes for reconstruction purposes. Develop verification tools that validate data consistency between Odoo and Razorpay.

Manage key rotation and credential updates without service interruption. Implement seamless transition procedures for API key updates. Develop fallback mechanisms for handling expired credentials during maintenance windows. Create alerts for impending credential expiration to prevent service disruption.

Testing and Validation

Development Environment Testing

Establish a comprehensive test environment with Razorpay test mode. Create test cases that cover all payment scenarios your business requires. Use Razorpay’s test card numbers to simulate successful, failed, and pending payments. Test international payment processing with various currencies and payment methods.

Verify webhook processing with Razorpay’s webhook simulator tool. Test all webhook event types your integration handles. Validate that your webhook endpoint processes duplicate events idempotently. Verify signature verification rejects tampered requests while accepting legitimate ones.

Test the complete payment flow from initiation to settlement reconciliation. Simulate customer drop-off at various stages of the payment process. Verify that abandoned payments handle properly without creating order fulfillment issues. Test simultaneous payments from multiple customers to identify concurrency problems.

Integration Testing Scenarios

Create test cases for network failure scenarios during critical operations. Simulate Razorpay API downtime during payment initiation and status checks. Verify your system handles timeouts gracefully without losing transaction data. Test recovery procedures when services become available after outages.

Validate error handling for invalid payment data and malformed API responses. Test with extreme amount values, special characters in customer data, and missing required fields. Verify your system logs appropriate errors without exposing sensitive information to users. Test boundary conditions like minimum and maximum payment amounts.

Perform load testing to verify system performance under high transaction volumes. Simulate peak sales periods with simultaneous payment processing requests. Measure response times for payment initiation, status checks, and webhook processing. Identify performance bottlenecks and optimize before production deployment.

User Acceptance Testing

Develop business-focused test scenarios that mirror real customer behavior. Test complete order-to-cash cycles with various payment methods. Involve finance team members in reconciliation testing to ensure settlement accuracy. Have customer service representatives test refund and dispute handling procedures.

Validate the checkout experience across different devices and browsers. Test payment form rendering and functionality on mobile, tablet, and desktop platforms. Verify that the payment flow works correctly with slow network connections. Ensure accessibility compliance for customers using assistive technologies.

Conduct security testing to identify potential vulnerabilities. Perform penetration testing on your webhook endpoints and payment processing controllers. Verify that sensitive data like API keys and customer information receives proper protection. Test for common web application security issues like SQL injection and cross-site scripting.

Production Validation Checklist

Create a go-live checklist that verifies all integration components. Confirm API credentials point to live Razorpay accounts with proper permissions. Validate webhook endpoints use production URLs with SSL encryption. Verify that all payment methods undergo testing in the live environment.

Implement monitoring and alerting for production payment processing. Set up dashboards that track payment success rates, webhook delivery status, and settlement reconciliation. Create alerts for abnormal patterns like sudden increases in failure rates or missing webhook events. Establish escalation procedures for critical payment processing issues.

Develop rollback procedures in case production issues emerge. Prepare configuration changes to disable Razorpay payments temporarily if serious problems occur. Test fallback payment methods to ensure business continuity during integration issues. Document troubleshooting procedures for common production scenarios.

Security Considerations

API Security Implementation

Protect Razorpay API keys with proper access controls in Odoo. Store key_secret values in Odoo’s configuration parameters with appropriate security flags. Restrict access to payment acquirer configuration to authorized administrators only. Implement audit logging for all changes to payment processing settings.

Secure API communication with transport layer encryption. Verify SSL certificate validation for all requests to Razorpay’s API endpoints. Implement certificate pinning to prevent man-in-the-middle attacks. Use latest TLS versions for all external communication.

Manage webhook security with signature verification. Validate the Razorpay-Signature header for all incoming webhook requests. Reject requests with invalid signatures or missing verification headers. Implement timestamp validation to prevent replay attacks using old webhook payloads.

Data Protection Measures

Anonymize sensitive payment data in logs and error messages. Implement data masking for card numbers, customer identifiers, and API keys in application logs. Create separate audit logs for payment operations that exclude sensitive information. Develop data retention policies that automatically purge unnecessary payment data.

Secure customer payment information during transmission and storage. Never store complete card details or bank account information in Odoo databases. Tokenize sensitive payment instruments using Razorpay’s tokenization service. Implement database encryption for any payment-related data you must retain.

Protect against common web application vulnerabilities in payment processing. Implement CSRF protection for all payment initiation endpoints. Validate and sanitize all input parameters in payment controllers. Use parameterized queries to prevent SQL injection in database operations.

Compliance and Access Control

Maintain PCI DSS compliance through proper handling of cardholder data. Ensure your integration never touches raw card information by using Razorpay’s hosted payment pages. Conduct regular security assessments of your payment processing infrastructure. Maintain audit trails for all payment-related operations.

Implement role-based access control for payment operations. Restrict payment processing capabilities to authorized personnel only. Create separate roles for payment initiation, refund processing, and reconciliation activities. Implement segregation of duties to prevent fraud through excessive privileges.

Establish security monitoring for suspicious payment activities. Create alerts for unusual transaction patterns or multiple failed payment attempts. Monitor for webhook endpoint abuse through rate limiting and intrusion detection. Develop incident response procedures for security breaches involving payment data.

Performance Optimization

Payment Processing Optimization

Implement strategic caching for Razorpay API responses to reduce external calls. Cache payment method configuration and currency exchange rates with appropriate expiration times. Avoid caching dynamic data like payment status and account balances. Use cache warming techniques for frequently accessed payment information.

Optimize database queries for payment transaction processing. Create appropriate indexes on transaction reference fields and payment dates. Implement query optimization for reconciliation procedures that process large transaction volumes. Use database connection pooling to handle concurrent payment operations.

Reduce payment page load times through efficient asset delivery. Minify JavaScript and CSS resources for the payment checkout interface. Implement lazy loading for non-critical payment form components. Use content delivery networks for static assets related to payment processing.

Webhook Processing Efficiency

Scale webhook processing through background job distribution. Implement queue-based processing for webhook events to handle traffic spikes. Use multiple worker processes to parallelize webhook handling during peak loads. Monitor queue depths and scale worker capacity based on incoming webhook volume.

Optimize webhook validation and processing for maximum throughput. Implement efficient signature verification algorithms that minimize CPU overhead. Use database connection reuse within webhook handlers to reduce connection establishment overhead. Batch process webhook events where possible to reduce database write operations.

Implement webhook rate limiting without sacrificing reliability. Use sliding window algorithms to smooth incoming webhook traffic. Prioritize critical webhook events like payment captures over less urgent notifications. Implement graceful degradation when webhook processing reaches capacity limits.

System Monitoring and Tuning

Establish comprehensive performance monitoring for all integration components. Track API response times, webhook processing latency, and database query performance. Set performance baselines and create alerts for deviations from normal operation. Monitor system resource utilization during peak payment processing periods.

Implement automatic scaling for payment processing components. Scale web application servers based on incoming payment request volume. Adjust background worker capacity based on queue depths and processing backlogs. Use database read replicas to handle reporting queries without impacting transaction processing.

Conduct regular performance testing and optimization reviews. Analyze payment processing performance trends to identify degradation over time. Perform load testing before major sales events to ensure capacity adequacy. Optimize database performance through query analysis and index tuning.