Customers have this complaint that why does the refund takes so much time to be processed whereas the payments go through very quickly. The question is quite fair but there is a reasonable answer to this according to the reasons for making the refund.
The Causes for Issuing Refunds
There are various reasons for which the refund would be processed:
- In case of the transaction is Failed
- In case the seller decides to issue a refund because of any reason such as nonavailability of the goods and services they paid for
- In case the buyer requests the refund due to any reason such as they are not satisfied with the services or products
Auto-Refund for Failed Transaction
There are various reasons for failed transactions. A failed transaction means that the payment was not able to go through the payment gateway. However, in failed transactions, there are times when the customer’s money is deducted.
There are various parties and processes involved in transaction processing. Step by step the authorization and authentication as well as respective responses are provided by respective parties.
The transaction would result to be failed if the issuing bank or the acquiring bank does not provide the payment status from their side because of any possible reasons such as:
- Loss of internet connection
- Slow internet connection speed
- Customer Presses the “Back” Button
- Click on Payment Success button for more than once
- Close the Browser while Payment Processing
In such transactions, the payment gateway intervenes and they have to check the actual final transaction status from the bank side.
To know more about the process read here: Reconciliation Process and Delayed Capture Feature
Refunds requested by the Customer or issued by the Merchant
These types of refunds are initiated by the merchant itself. But, goes through various different parties. Through PayKun, the merchant can issue a partial as well as a full refund to the customer depending upon their communication with the customer.
Refund Process and Why does it take so much time?
The refund process takes various parties’ involvement as mentioned earlier. The procedure is somewhat different that would include less of the automatic process and more of the manual intervention.
It goes by various parties and requires all of their action to be taken from their side. In the above-mentioned cause where the merchant issues the refund, it goes by the payment gateway. After that, through the Acquiring Bank and to the issuing bank.
In between, there can be other payment processors playing their roles. So, once the refund is initiated it depends on how much time the refund takes while passing these multiple parties.
Depending on the payment method, the days for this refund process is decided as under:
- UPI: Instant or Maximum 2 working days
- Debit/Credit Card: Minimum 5 working days and Maximum 10 working days
- Net Banking: Minimum 2 working days and Maximum 10 working days
- Wallet: Minimum 1 working day or Instant and Maximum 3 working days
Extra Notes –
The refunds are credited to the same original source from where it was deducted when the payment was made. For example, if it was paid with the Wallet Balance, it will be credited as the Wallet Balance.
The refund window time is from 7-14 working days so you need not worry, if the refund was initiated it would get to you in the mentioned time frame. If the load on the bank or any other involved party increases then the delay in the refund can happen. Due to some technological lacking, it is possible that the refund process was disturbed but it won’t stop and will be initiated again.
You may drop an email at firstname.lastname@example.org in case you have any queries or concerns we are here to assist you.