> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# How Smart Collect Works

> The following steps explain how Smart Collect uses Customer Identifiers to receive payments from the customers:

<Steps>
  <Step title="Step 1">
    Set up your [Razorpay account](/payments/set-up).
  </Step>

  <Step title="Step 2">
    Create Customer Identifiers tagged to the customer.
  </Step>

  <Step title="Step 3">
    The account details of the Customer Identifier created by Razorpay (such as account number, IFSC and Name) should be shared with the customer.
  </Step>

  <Step title="Step 4">
    The customer adds the bank account as a beneficiary on their preferred netbanking portal and transfers the money using NEFT, RTGS or IMPS.
  </Step>

  <Step title="Step 5">
    Payment deposited in these customer identifiers is settled into your bank account linked with Razorpay.
  </Step>
</Steps>

<Info>
  **Payment Confirmation**

  You can consider a payment to be successful only when you receive the notification from Razorpay. You can [check the payment status on the Dashboard](/payments/smart-collect/create#view-payments). Also, you can choose to configure [webhooks](/payments/smart-collect/subscribe-to-webhooks) and subscribe to the `virtual_account.credited` event to receive notifications when customers make payments.
</Info>

## Customer Identifier Format

You can create a unique Customer Identifier using Smart Collect to receive payments from your customers. The Customer Identifier consists of 16 digits.

```
Bank Account Number: 1112220040042526
```

Know more about [Customer Identifier States](/payments/smart-collect/states).

### Related Information

* [Smart Collect](/payments/smart-collect)
* [Auto Third Party Validation (TPV) on Smart Collect](/payments/smart-collect/third-party-validation)
* [Smart Collect APIs](/api/payments/smart-collect)
* [Subscribe to Webhooks](/payments/smart-collect/subscribe-to-webhooks)