In the current modern times, online payments have seen high adoption among e-commerce customers. All it takes is a click to make payments that are deducted successfully from the customer’s account in a matter of seconds. However, there is one area where e-commerce businesses still struggle, when it comes to initiating refunds to their customers effectively.
Let’s talk about two typical cases that might call for a customer refund:
- Scenario 1: An online transaction made by a customer fails, but the amount still gets deducted from their account.
- Scenario 2: A customer raises a refund request by cancelling the order, which can be for any reason, such as the product not meeting their expectations.
If you have a business and face these issues, then read on to find that perfect solution to ease your customer refunds.
But, if you are a customer, then read on to know what happens behind the scenes when you ask for a refund.
The Typical Game of Refunds
In a normal online transaction, the customer initiates a transaction wherein the payment gateway informs the issuing bank (customer’s bank) to process the payment to the acquiring bank (business’s bank). This isn’t a simple process and includes several steps necessary for securing the information transfer at each step involving authentication via OTPs, MPIN, passwords, etc.
Now in case of refunds, the chain has to be reversed. But why does it take so long?
Although refunds involve the exchange of information between 3-4 entities, each entity follows its own set of rules to process refund payments made to cards. Many of these processes are still manual and take at least 2-3 days minimum to verify the refund details. Hence it takes at least 5-10 days for the refund amount to get reflected in the customer’s card statement.
A long refund process such as this not only results in a bad customer experience, it also requires more resources for answering the numerous customer queries regarding their refunds, which come at an increased cost.
A typical refund process requires you to go through the hassle of matching up to the numerous refund formalities, conducting manual oversights, follow up with more than one bank involved in the transaction, and then finally updating the customer about the status.
Leverage Initiating Instant Refunds to Customer Cards with Paytm Payouts
How amazing would it be if it took just a few seconds to transfer the refund amount to a customer? Well, we hear you! Paytm Payouts is the genie making your wish come true – you can now make instant card refunds in no time!
Once your customers place the return orders on your website or app and have fulfilled all the refund formalities, all you have to do is to issue the refund with Paytm Payouts directly to the customer card details.
We have directly integrated with VISA and Mastercard networks to allow instant refunds to customer cards. All that is needed is the customer’s card number. In case your business is still not PCI- DSS compliant and the card details are not available, just send us the original Paytm Transaction ID to process the refund to the cardholder. Now that’s super simple, isn’t it?
As a business, you need not worry about what all banks do we support because the list is exhaustive. Our strong API’s are built to choose only the banks that support instant refunds.
Apart from refunds, your business can rely on Paytm Payouts to also issue instant rewards and cashback to your card customers.
So Why Paytm Payouts, you say? Here’s why:
- Direct integrations with card networks (VISA & MasterCard) for instant refunds.
- An exhaustive list of banks supporting instant credit.
- Developer-friendly APIs to issue instant customer refunds.
- Customer rewards can be issued instantly to their cards.
Wait! There’s More!
- Round-the-clock Instant Payouts
This is the only payouts product in the market allowing instant payment of any amount at any time for easy cash flow management.
- 10+ Payout Options
Make payouts to bank accounts, UPI addresses, digital gold, gift vouchers, utility bills, food wallet and allowances, and much more.
- Sub Accounts
Create sub-accounts and allocate fixed budgets to various departments for a single point of easy reconciliation.
- Easy Approvals
Select users and create approval workflows depending on your organization’s hierarchy to ensure seamless approvals.
- Cash on Delivery Refunds
Send out payout links to your customers for instant refunds on their cash on delivery orders.
- Easy Integration
Automate your business end-to-end with our easy to use APIs.