Online Payment Refunds Revealed:- www.deekpay.com

When trying to make an online payment, have you ever encountered a situation where the payment failed to arrive? I'm sure you're worried that you may never get the money back.

As a startup or online shop entrepreneur, you must be concerned about encountering fraudulent transactions, chargebacks, and possible criminal behaviour during online payments. While these situations can be daunting, you can effectively control them by integrating some simple guidelines/checklists into your existing sales cycle. Before we get into these guidelines, let's understand what a chargeback is.

What is a refund?

As a startup or entrepreneur, you are always looking for a steady stream of orders to help you achieve milestones and drive your business forward. Let's say you have secured a large order that you have been working on for a long time and you feel very happy and excited to fulfil the order. You complete the order and deliver it to the customer and eagerly wait to receive the payment. However, suddenly you receive an email from the payment gateway team stating that the customer has requested a refund. What you have experienced is known as a "chargeback".

Any customer who makes a transaction through a credit card has the right to request a refund of the amount charged to the bank within a certain period of time. This refund request is known as "chargeback". Whenever a refund request is made, the customer's bank notifies the payment gateway provider, who in turn notifies you.

How does a refund affect me?

Frequent refunds reduce your credibility as a shop owner. Also, each time you experience a refund, your transaction will be suspended. This will last until the refunded amount is recovered from your current transaction or you can prove otherwise, whichever is earlier.

Why would anyone ask me for a refund?

Customers can request a refund for a number of reasons, for example:

- Goods not delivered

- Goods not delivered within the specified time

- Product delivered but defective

- Product delivered but damaged in transit

- Product does not conform to stated specifications

- Fraudulent transactions on the customer's card.

How can I avoid refunds?

Prevention is better than cure! Avoiding refunds is always better than arguing with payment gateway providers and valuable customers.

You can avoid refunds by following these simple steps:

1. Timely client services

Remember, when a customer is not satisfied with your product/service, they may contact you before filing a claim or refund request. Ensure that you have a strong and prompt support system to resolve customer queries in a timely manner so that they don't feel cheated by your online presence. Always recognise their concerns and follow up quickly to resolve them at the earliest. Advise customers to contact customer service if they have any queries, and customer service phone numbers or emails should be specified in all communications before and after the order. This will give you a chance to resolve the issue and thus avoid refunds.

This will also improve your credibility and avoid negative word of mouth. You can also utilise social media to address customer queries.

2. Recording transactions

It is recommended that you keep a record of orders, invoices and delivery vouchers for at least 6 months. This can be used both for reference and as evidence to resolve refund claims made by customers. The record of delivery vouchers will help you to refute claims for undelivered products.

3. Terms and conditions

Terms and conditions are one of the most important pieces of information on a product page. You should have a clearly defined return policy. You should try to cover most of the possible scenarios and the relevant terms and conditions. This will serve as a future reference for claim settlement and to avoid fraudulent claims.

4. Product description

Product descriptions should be as accurate as possible. Don't over-promise just to make a sale. Clearly state what you know about the product description. If a customer needs more information or clarification about a product, ask them to contact you before placing an order. This will help avoid future claims and refunds. It is advisable to call the customer after receiving a critical order.

What happens after a refund request?

Once the customer requests a refund, the customer's bank will send a request to your payment gateway provider.

- The payment gateway provider will notify you about the refund request.

- The payment gateway provider will ask you to provide proof of delivery of the product/service.

- If you have not yet delivered the product, you can refund the customer's money from the payment gateway dashboard and notify accordingly.

- Assuming a refund of Rs. 1000 is raised, then the payment gateway will deduct that amount from your next transaction until the entire amount is covered.

- Once you have provided all the necessary product delivery credentials, your payment gateway provider will handle the process on your behalf and you can start receiving full payment through the gateway.

Are there any refund claims other than refunds?

Yes, the customer can file a claim against the shop owner even for transactions made through debit card and net banking. The customer can contact the payment gateway directly and file a claim against the shop owner for any of the reasons mentioned above. In this case, the resolution process is the same as for refunds and you will be asked to provide proof of delivery of the product.

How often are refunds filed?

As a result of the 3D security measures implemented by the Reserve Bank of India, the likelihood of fraudulent transactions has been significantly reduced. Consequently, this has also reduced the likelihood of refund claims, as transactions require customer authorisation to proceed. This leaves behind product and delivery related issues. These issues cannot be predicted but can certainly be avoided through better communication between you and your customers.

Does the payment gateway provider protect me from fraudulent transactions?

Payment gateways in India follow the PCI DSS version 2.0 standard, which specifies high security protocols to protect you from fraudulent transactions. They have also implemented a risk management system on their servers to handle fraudulent transactions that occur through invalid cards, known suspicious IP addresses, spam email IDs, and so on.

In some cases, when the Payment Gateway team feels that a transaction taking place on your shop is risky, they will ask you to provide proof of customer identity. This is an additional security measure to protect your business from fraudsters.

We hope this removes some of your concerns about payment gateway risks. If at any point during your transaction you feel suspicious, you can always contact your payment gateway support team or our support team for assistance.

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