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Massive Technical Glitch or Deliberate Move? Reversals for Failed Amazon Prepaid Wallet UPI Transactions Credited to Gift Card Balances

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sun156

sun156

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So here's what’s going on in AMAZON PAY WALLET WHEN USED FOR UPI PAYMENTS — that offers UPI services by taking PPI licence from NPCI . Everything seems fine… until you face a failed UPI transaction. Now, as per NPCI and RBI guidelines, if a UPI transaction fails, your money should be refunded back to the exact source — like your bank account, wallet, or card, depending on how you paid.
But what is AMAZON PAY is doing? This is the shocking part.

Every time a UPI payment fails on their app who uses AMAZON PAY WALLET( PPI ) Amount, instead of getting your money back into your original Amazon pay wallet account, they’re crediting it to their own gift card system inside the app.
Yes, you heard that right. The money doesn't come back to your wallet — it gets converted into a non-withdraw-able gift card balance. And guess what? You can only use that balance for purchases inside their app. No refunds. No transfers. Nothing.
And this isn't a one-time bug. This has been happening for over three years now. Hundreds — maybe thousands — of users might have lost their rightful refunds and don’t even know it. This is not just bad business practice — this violates regulatory norms laid down by authorities like NPCI and RBI. I seen several users commenting this same problem in Twitter and several Handles . Recently My friend Faced , 3 times I faced the same Problem

This isn't just about one app. If companies start doing this unchecked, they’re basically locking your money into their ecosystem — forcing you to spend on things you may not even want.That’s not how digital payments are supposed to work. You have a right to a full refund to your original payment source when a transaction fails.
If this has happened to you, don’t stay silent. File a complaint with
  • NPCI (npci.org.in)
  • RBI Ombudsman
  • Or raise a grievance in the Consumer Court or National Consumer Helpline."
You can even tag them on Twitter or use the RBI CMS portal to escalate. I will also update the case once their Reply came


AS per RBI CIRCULAR ON " Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorized Payment Systems " dated September 20, 2019 , we can get penalty of 100/- per day if they crosses T+5 days ( Refer RBI/2019-20/67 DPSS.CO.PD No.629/02.01.014/2019-20 ) .
As per clause 6- The term bank includes non-banks also and applies to them wherever they are authorised to operate.


​
Prepaid Payment Instruments (PPIs) – Cards / Wallets
Off-Us transaction

The transaction will ride on UPI, card network, IMPS, etc., as the case may be. The TAT and compensation rule of respective system shall apply.
On-Us transaction

Beneficiary’s PPI not credited.

PPI debited but transaction confirmation not received at merchant location.		Reversal effected in Remitter’s account within T + 1 day.₹100/- per day if delay is beyond T + 1 day.


4. Unified Payments Interface (UPI)
Account debited but the beneficiary account is not credited (transfer of funds).If unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.₹100/- per day if delay is beyond T + 1 day.
Account debited but transaction confirmation not received at merchant location (payment to merchant).Auto-reversal within T + 5 days.₹100/- per day if delay is beyond T + 5 days.


​


@TechnoFino @SSV @Vasuki @Batmanbaba @Abhishek012 @as33 @Tejo @Chaitanya-a
 
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sun156 said:
So here's what’s going on in AMAZON PAY WALLET WHEN USED FOR UPI PAYMENTS — that offers UPI services by taking PPI licence from NPCI . Everything seems fine… until you face a failed UPI transaction. Now, as per NPCI and RBI guidelines, if a UPI transaction fails, your money should be refunded back to the exact source — like your bank account, wallet, or card, depending on how you paid.
But what is AMAZON PAY is doing? This is the shocking part.

Every time a UPI payment fails on their app who uses AMAZON PAY WALLET( PPI ) Amount, instead of getting your money back into your original Amazon pay wallet account, they’re crediting it to their own gift card system inside the app.
Yes, you heard that right. The money doesn't come back to your wallet — it gets converted into a non-withdraw-able gift card balance. And guess what? You can only use that balance for purchases inside their app. No refunds. No transfers. Nothing.
And this isn't a one-time bug. This has been happening for over three years now. Hundreds — maybe thousands — of users might have lost their rightful refunds and don’t even know it. This is not just bad business practice — this violates regulatory norms laid down by authorities like NPCI and RBI. I seen several users commenting this same problem in Twitter and several Handles . Recently My friend Faced , 3 times I faced the same Problem

This isn't just about one app. If companies start doing this unchecked, they’re basically locking your money into their ecosystem — forcing you to spend on things you may not even want.That’s not how digital payments are supposed to work. You have a right to a full refund to your original payment source when a transaction fails.
If this has happened to you, don’t stay silent. File a complaint with
  • NPCI (npci.org.in)
  • RBI Ombudsman
  • Or raise a grievance in the Consumer Court or National Consumer Helpline."
You can even tag them on Twitter or use the RBI CMS portal to escalate. I will also update the case once their Reply came


AS per RBI CIRCULAR ON " Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorized Payment Systems " dated September 20, 2019 , we can get penalty of 100/- per day if they crosses T+1 days ( Refer RBI/2019-20/67 DPSS.CO.PD No.629/02.01.014/2019-20 ) .
As per clause 6- The term bank includes non-banks also and applies to them wherever they are authorised to operate.

​
Unified Payments Interface (UPI)
Account debited but the beneficiary account is not credited (transfer of funds).If unable to credit the beneficiary account, auto reversal (R) by the Beneficiary bank latest on T + 1 day.₹100/- per day if delay is beyond T + 1 day.
Account debited but transaction confirmation not received at merchant location (payment to merchant).Auto-reversal within T + 5 days.₹100/- per day if delay is beyond T + 5 days.
​
Prepaid Payment Instruments (PPIs) – Cards / Wallets
Off-Us transaction

The transaction will ride on UPI, card network, IMPS, etc., as the case may be. The TAT and compensation rule of respective system shall apply.
On-Us transaction

Beneficiary’s PPI not credited.

PPI debited but transaction confirmation not received at merchant location.		Reversal effected in Remitter’s account within T + 1 day.₹100/- per day if delay is beyond T + 1 day.
​


@TechnoFino @SSV @Vasuki @Batmanbaba @Abhishek012 @as33 @Tejo @Chaitanya-a
Click to expand...
Bro, your thread seems to be on an important issue. But as suggested by other please rectify some of the tags (indexed tags). Your tags are appearing like sentences. For example, instead of writing "amazon pay wallet upi" every time, write once, it will create similar reach. Please don't take it otherwise. The question you raised is interesting.
 
Upvote 0 Downvote
Valid point.

Not only thing, for any order if they give cashback, they wont reverse their cashback, instead they minus cashback amount from original payment.
This is causing issue in EMI transactions, we cant claim full reversal of charges for emi if full refund not credited
 
Upvote 0 Downvote
Ram1 said:
Valid point.

Not only thing, for any order if they give cashback, they wont reverse their cashback, instead they minus cashback amount from original payment.
This is causing issue in EMI transactions, we cant claim full reversal of charges for emi if full refund not credited
Click to expand...
yes this one also

If we utilized the GIFT CARD balance then They can do that, but even
If we Dont utilize the GC balance , they simply refund the amount by Subtracting the cashback amount , which is wrong , They should debit the GC balance and refund the full amount
since amazon balance is widely used and accepted for some bills or payments no one is addressing this issue as per my opion

I dont know how and whom to address this issue , expect to say to our @TechnoFino Boss
 
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ccdc said:
i thought it's a loot offer or something.....thik hai yaar....when someone buys apay vouchers from cards giving 16%-17% "return"...ppl love amazon then...love it now also....
Click to expand...

Yes bro we love amazon more than any app.
But still some things cant violate the basic structure of Rbi,NPCI and other Regulatory Bodies guidelines
See my case 15000 upi failed refund was processed to giftcard section

Small amounts okay, but large amounts it will be big problem
 
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Upvote 0 Downvote
Aisa kab hua ?

Well, mine has never failed but I have definitely received refunds and all of them were credited to the Amazon Wallet UPI. 🙄🙄

I had definitely heard that if the Amazon Wallet limit is exceeded at the time of a refund to Amazon Wallet UPI then Amazon issues the refund as an Amazon Gift Card instead.

This is a problem — could it be that this is what happened? @sun156
 
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Abhishek012 said:
Aisa kab hua ?

Well, mine has never failed but I have definitely received refunds and all of them were credited to the Amazon Wallet UPI. 🙄🙄

I had definitely heard that if the Amazon Wallet limit is exceeded at the time of a refund to Amazon Wallet UPI then Amazon issues the refund as an Amazon Gift Card instead.

This is a problem — could it be that this is what happened? @sun156
Click to expand...


What do you mean by amazon wallet limit exceed ??

I am not saying about bank linked to amazon upi, rather I am saying UPI LINKED TO AMAZON WALLET
Its simply a PPI bro, The amount must be refunded back to source.
Max cash limit is 1,00,000 for FULL KYC accounts at any point of time in an account.
Monthly cummulative transaction limit also 5 lakh for FULL KYC.

This is not first time for me, nor to my friends, I also seen similar complaints in several platforms.

Full KYC account also mine, how it will be exceeded, when I havent used it from 2 -3 months
Except one time to pay current bill.


Seee some other user also same problem commented , This happend so many time to me , My father account , friends also.
Whos Transaction in a month wont even cross 20k at max any point of time

A

Thread 'Amazon pay money refund not credited'

Hi,

I made a transaction on mobikwik and paid by UPI using amazon pay money in october 22. The payment from amazon side was successful, but the transaction failed on mobikwik. I tried it once more and the same result. I got refund for the first transaction in amazon pay as a gift card (not money), but I don't mind that.
But I never got refund for the second failed transaction in amazon pay. I complained to amazon in November and December 22 multiple times. But never got any satisfactory response and they kept on asking me to raise with mobikwik. When I told them that mobikwik already...

May be ur assumption is wrong acc to me.
You are Lucky and better if any of ur amz wallet linked upi fails and refund to source.
 
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Upvote 0 Downvote
sun156 said:
What do you mean by amazon wallet limit exceed ??

I am not saying about bank linked to amazon upi, rather I am saying UPI LINKED TO AMAZON WALLET
Its simply a PPI bro, The amount must be refunded back to source.
Max cash limit is 1,00,000 for FULL KYC accounts at any point of time in an account.
Monthly cummulative transaction limit also 5 lakh for FULL KYC.

This is not first time for me, nor to my friends, I also seen similar complaints in several platforms.

Full KYC account also mine, how it will be exceeded, when I havent used it from 2 -3 months
Except one time to pay current bill.


Seee some other user also same problem commented , This happend so many time to me , My father account , friends also.
Whos Transaction in a month wont even cross 20k at max any point of time

A

Thread 'Amazon pay money refund not credited'

Hi,

I made a transaction on mobikwik and paid by UPI using amazon pay money in october 22. The payment from amazon side was successful, but the transaction failed on mobikwik. I tried it once more and the same result. I got refund for the first transaction in amazon pay as a gift card (not money), but I don't mind that.
But I never got refund for the second failed transaction in amazon pay. I complained to amazon in November and December 22 multiple times. But never got any satisfactory response and they kept on asking me to raise with mobikwik. When I told them that mobikwik already...

May be ur assumption is wrong acc to me.
You are Lucky and better if any of ur amz wallet linked upi fails and refund to source.
Click to expand...
Im also talking about Amazon PPI wallet UPI.

Anyway, your transaction was failed/declined and the money was debited and later credited to the Amazon gift card balance, right?

Because in my case, it never failed, but if i get any refunds, always been credited to the Amazon PPI wallet UPI.
 
Upvote 0 Downvote
I agree with @Abhishek012
Around a week ago, my friend's 5k transaction of Amazon Pay wallet to axis Bank failed around midnight. Amount refunded back to wallet only not GV within 3 hrs.

I will update with screenshots here 🔜

Infact, I also never faced it. I am sure my 1-2 trxns also failed in past
 
Upvote 0 Downvote
Abhishek012 said:
Im also talking about Amazon PPI wallet UPI.

Anyway, your transaction was failed/declined and the money was debited and later credited to the Amazon gift card balance, right?

Because in my case, it never failed, but if i get any refunds, always been credited to the Amazon PPI wallet UPI.
Click to expand...
You are absolutely correct now bro regarding the problem

Not only me several users , in my near and dear also, Thats why vexed and complained after faced this problem for 4th time
always adjusted and utilized the amount, But Now it is large amount .

I said that , your theory cant be correct, bcz of my account is FULL KYC , not utilized even 1/- in this month , year & monthly cumulative limits also not crossed/exhausted

You are lucky to get refund back to source, I wish it should happen to me from the next failed payments , But still I am tensed to use occasionally also.

This is clearly waste of My time bro in fighting them, mailing them , Follow ups, proofs, policy reading, escalations, bcz at the end of the they cant go above policy or Regulatory policy-

if really a small amount even I would also been compromised for My Cost to Time Ratio

tq any how for ur support on us bro by spending some time on our problems at-least
tq
 
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sun156 said:
You are absolutely correct now bro regarding the problem

Not only me several users , in my near and dear also, Thats why vexed and complained after faced this problem for 4th time
always adjusted and utilized the amount, But Now it is large amount .

I said that , your theory cant be correct, bcz of my account is FULL KYC , not utilized even 1/- in this month , year & monthly cumulative limits also not crossed/exhausted

You are lucky to get refund back to source, I wish it should happen to me from the next failed payments , But still I am tensed to use occasionally also.

This is clearly waste of My time bro in fighting them, mailing them , Follow ups, proofs, policy reading, escalations, bcz at the end of the they cant go above policy or Regulatory policy-

if really a small amount even I would also been compromised for My Cost to Time Ratio

tq any how for ur support on us bro by spending some time on our problems at-least
tq
Click to expand...
Complaint to RBI after 30 days.

Ask for compensation and also mention that this issue has been happening for the past 3 years and Amazon has not fixed it.
 
Upvote 0 Downvote
Abhishek012 said:
Complaint to RBI after 30 days.

Ask for compensation and also mention that this issue has been happening for the past 3 years and Amazon has not fixed it.
Click to expand...
Yes to my surprise , 1-2 members called initially to ask the issue later one person called and said it is the final resolution no help., Then I enlightened him with present RBI, NPCI , PPI guidelines, and now Today a senior members called me conveyed through call the same, so I asked him communicate same to mail. ( said he is working in amz from 8 years , clearly said we dont refund to wallet , only GC ). I know This is happening from past years bcz it is automated system process.
I said it is not refund, It is failed payment UPI Reversal which should be back to source only..

They clearly saying that amazon dont refund Failed wallet payments to source, it will be only processes in the GC balance , He mailed the same.
and also asked me If I want he said he transfer it to bank account as one time exception, I said I know what to do, please dont take any request.
I said more than 5 days completed also , you need to compensate me also .

compensation how much bro max 1k-5k we will get , But Time is wasting for this stupid policy ,
currently RBI due to receiving massive complaints , It organized a cell ,(Prev it used to allot to random RBI HEAD OFFICES) simply they are rejecting the complaint if it is not acc to guidelines, unless 30 days elapsed in RE we cant escalate to RBI.
 
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sun156 said:
Yes to my surprise , 1-2 members called initially to ask the issue later one person called and said it is the final resolution no help., Then I enlightened him with present RBI, NPCI , PPI guidelines, and now Today a senior members called me conveyed through call the same, so I asked him communicate same to mail. ( said he is working in amz from 8 years , clearly said we dont refund to wallet , only GC ). I know This is happening from past years bcz it is automated system process.
I said it is not refund, It is failed payment UPI Reversal which should be back to source only..

They clearly saying that amazon dont refund Failed wallet payments to source, it will be only processes in the GC balance , He mailed the same.
and also asked me If I want he said he transfer it to bank account as one time exception, I said I know what to do, please dont take any request.
I said more than 5 days completed also , you need to compensate me also .

compensation how much bro max 1k-5k we will get , But Time is wasting for this stupid policy ,
currently RBI due to receiving massive complaints , It organized a cell ,(Prev it used to allot to random RBI HEAD OFFICES) simply they are rejecting the complaint if it is not acc to guidelines, unless 30 days elapsed in RE we cant escalate to RBI.
Click to expand...
ok, I think now only RBI will be able to solve it.

The people at Amazon don’t even know how to do a chargeback on Wallet UPI. Otherwise, you could have asked them to initiate a chargeback. — this actually applies under the third chargeback (Arbitration).

The Arbitration Process, NPCI/UPI would have investigated the matter. Try saying this to Amazon.
 
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Abhishek012 said:
ok, I think now only RBI will be able to solve it.

The people at Amazon don’t even know how to do a chargeback on Wallet UPI. Otherwise, you could have asked them to initiate a chargeback. — this actually applies under the third chargeback (Arbitration).

The Arbitration Process, NPCI/UPI would have investigated the matter. Try saying this to Amazon.
Click to expand...
Yes bro I to remembered & know the chargeback process, even my first complaint also the same in 2012 against PAYTM to Rbi ombudsman, but it wont apply here.
As you know that chargeback is process, which should be done at bank/PPI where Debit of amount was induced. Here it is amazon PPI only. So as per amazon the amount was refunded to GC wallet,

if the amount is not refunded , if services are not offereed , If i am not satisfied with the goods, then they will raise chargeback once merchant wont refund the amount.
so how they will raise a chargeback against them.

Even when we compaline to NPCI, as for the arbitration, I will sure receive T+5 days compensation and amount back to some bank account.

I already contacted my friend working in NPCI he checked the status of UPI failed and confirmed me that it was sended to remitter bank as transaction failed.

Here amount is given in wrong form which can only be utilized in amazon only.
So amazon wont raise charge against itself.


Yes i can complain to NPCI now( already did)
After 30days I can complain to RBI also.

But Time waste bro. Nothing I will get except 100per day. Thats the sad story. They wont even change for my single complaint.
Policy need to be changed at amazon level.
RBI and NPCI should be vigilant when such complaint is given , but unfortunately they are also fed up with numerous complaints.
 
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