UPI trust issues

[ismail]

hello all
I did an UPI transaction at a cloth stall for Rs.1500, the transaction remained in "Pending" status for some time. The merchant told that it will be refunded back as it will fail and to pay again. As I was hesitant that it would fail again he gave another number for payment which I did and it went through. Now after 24 hrs the first payment was successful and the money was credited to merchant.
Now I contacted the merchant, who refused receiving the money in account, and will not listen even after I gave my bank statement.
This type of incident happened a week before for Rs,.300, that merchant was kind enough to return the amount
Guys, isnt it risky to do UPI to merchants when about 1 in 1000 transactions are kept pending for some reason? the merchant will definitely ask for alternate mode of payment, and you would not know where the first payment will end up. If at all ot goes to merchant at a later date, the onus is on us to remember, track and convince the merchant for return of money
I lost trust in UPI and will do only cash transaction for amounts more than Rs.100. Only thing required is to carry an extra card- Debit card and visit ATMs some time

 

[Aniket]

hello all
I did an UPI transaction at a cloth stall for Rs.1500, the transaction remained in "Pending" status for some time. The merchant told that it will be refunded back as it will fail and to pay again. As I was hesitant that it would fail again he gave another number for payment which I did and it went through. Now after 24 hrs the first payment was successful and the money was credited to merchant.
Now I contacted the merchant, who refused receiving the money in account, and will not listen even after I gave my bank statement.
This type of incident happened a week before for Rs,.300, that merchant was kind enough to return the amount
Guys, isnt it risky to do UPI to merchants when about 1 in 1000 transactions are kept pending for some reason? the merchant will definitely ask for alternate mode of payment, and you would not know where the first payment will end up. If at all ot goes to merchant at a later date, the onus is on us to remember, track and convince the merchant for return of money
I lost trust in UPI and will do only cash transaction for amounts more than Rs.100. Only thing required is to carry an extra card- Debit card and visit ATMs some time

Firstly ask the merchant again to transfer the amount directly, insist him to show you the statement of that account so that you can trust him that the money is not credited yet. Also, don't forget to record him. Threaten him, if he won't co-operate with you that you're going to raise the issue with Cyber Crime, and with Bank too for fraud transaction which will freeze his account totally.

However, if the amount is not credited to beneficiary (merchant), auto reversal will be carried by the beneficiary bank within 2 days. 100/ day will be the compensation for you, if the delay is beyond 2 days including trxn day.

And lastly contact with your bank stating the situation and ask for chargeback.

Yeah, I too believe that trxn should be failed without debiting the sender's account if it's not getting successful within 1 mins.

 

[ismail]

thank you for the reply sir
I tried talking/pleading with the merchant, so much that I decided not to further beg anything more from him. Not sure how my bank would respond in chargeback. will just attempt a call and let go of my money..

 

[kushhh]

thank you for the reply sir
I tried talking/pleading with the merchant, so much that I decided not to further beg anything more from him. Not sure how my bank would respond in chargeback. will just attempt a call and let go of my money..

It's your money , don't let it go easily... Call merchant again , this time record the call , do whatever is mentioned in the above post

 

[Rocky Bhai]

@Abhishek012 logo ka bharosa uth raha hai UPI par se 😅

 

[SSV]

hello all
I did an UPI transaction at a cloth stall for Rs.1500, the transaction remained in "Pending" status for some time. The merchant told that it will be refunded back as it will fail and to pay again. As I was hesitant that it would fail again he gave another number for payment which I did and it went through. Now after 24 hrs the first payment was successful and the money was credited to merchant.
Now I contacted the merchant, who refused receiving the money in account, and will not listen even after I gave my bank statement.
This type of incident happened a week before for Rs,.300, that merchant was kind enough to return the amount
Guys, isnt it risky to do UPI to merchants when about 1 in 1000 transactions are kept pending for some reason? the merchant will definitely ask for alternate mode of payment, and you would not know where the first payment will end up. If at all ot goes to merchant at a later date, the onus is on us to remember, track and convince the merchant for return of money
I lost trust in UPI and will do only cash transaction for amounts more than Rs.100. Only thing required is to carry an extra card- Debit card and visit ATMs some time

You are absolutely right in losing trust about UPI in these circumstances...

the Only solution I could see :

There should not be any "Pending" Status ... Status should be either Success or Fail ..

 

[SonyTom]

Which was the UPI app? Gpay?
Which was the bank linked to UPI
Just to understand if there is a pattern

 

[Aniket]

thank you for the reply sir
I tried talking/pleading with the merchant, so much that I decided not to further beg anything more from him. Not sure how my bank would respond in chargeback. will just attempt a call and let go of my money..

You could have recorded your conversation with that merchant bro.

See, I can only suggest, the call should be yours, either you're trying to take your matter further or going to just give up, I were you, I would fight for my money.

By the way, if you can share the name of your issuing bank, merchant's beneficiary bank, trxn amount, UPI/ PSP App, it would be better.

You can contact your PSP/ TPAP/ UPI first by reporting such trxn, ask to help you to get that money back, later ask to your bank if TPAP wouldn't able to help and explain the situation to bank and ask chargeback, if this won't, virtually.

Write an application (handwritten) to Branch Manager stating that particular trxn as dispute, containing your transaction id/ UPI refrence number, name of merchant, your name, date and time of transaction, trxn amount and others, your money will get refunded, because usually banks are liable for such failure, when the confirmation is not received. Don't forget to take acknowledgement slip for the same duly stamped and signed.

You can also raise to NPCI (Click on this: UPI Dispute Redressal Mechanism, scroll down and go to complaint and find transaction, click on plus and fill the details and submit.


If this too won't work, let us know, will suggest further, but I think you get your money back here.

 

[VISHESH_BANSAL]

thank you for the reply sir
I tried talking/pleading with the merchant, so much that I decided not to further beg anything more from him. Not sure how my bank would respond in chargeback. will just attempt a call and let go of my money..

Usally such txn which are not real time Successful, gets credited in Receivers Account in max T+2 Days if sent to Personal UPI ID where T is the Txn Successfull Date

When you contacted the Merchant ? immediately after txn becomes Successfull ?

 

[Yugi]

Similar kind of thing happened with me too, the merchant was good person, so returned the money.

What I do these days in descending order of preference:
1) Use Credit Card
2) Use Rupay Credit Card UPI
3) Use wallets like Paytm, Phonepe etc
4) Use UPI Lite
5) Use UPI (If QR code is Paytm use Paytm, if Phonepe use PhonePe, I do this because when I complain on the app and they tell the exact status of transaction on merchant side too)

I know everyone has preferred UPI app and most of the transactions will be successful, but that one bad transaction will create lot of issues. Initially it was difficult, but the thing I do is easy after few times.

 

[Aniket]

Usally such txn which are not real time Successful, get credited in Receivers Account usually in max T+2 Days if sent to Personal UPI ID where T is the Txn Successfull Date

When you contacted the Merchant ? immediately after txn becomes Successfull ?

@ismail @S S V But the matter is merchant wouldn't care, if the amount is not credited in real time (instantly), won't let you go without making another payment.

I too have faced this issue (pending but captured the screenshot for future reference) but my money was not deducted and the transaction got unsuccessful after few mins but not before making another successful (UPI Lite) payment (screenshot attached), coz of my bank, since it was unable to process my payment. (Initiated the payment through CC on UPI)

Later I had enquired the same from Paytm, raised concern, by giving an imaginary situation as the case happened with the OP, but the executive was bluffing not to make another payment again and just wait, then again asked what if it's not getting successful or failed even within half an hour so?🤣

Made him to say that report such trxn if it will happen in future to us, we will take into consideration and help you. 😂

 

[SSV]

@ismail @S S V But the matter is merchant wouldn't care, if the amount is not credited in real time (instantly), won't let you go without making another payment.

I too have faced this issue but my money was not deducted and the transaction got unsuccessful after few mins but not before making another successful (UPI Lite) payment (screenshot attached), coz of my bank, since it was unable to process my payment. (Initiated the payment through CC on UPI)

Later I had enquired the same from Paytm, raised concern, by giving an imaginary situation as the case happened with the OP, but the executive was bluffing not to make another payment again and just wait, then again asked what if it's not getting successful or failed even within half an hour so?🤣

Made him to say that report such trxn if it will happen in future to us, we will take into consideration and help you. 😂

That was why I said no "Pending Status" business for a long time..
Tell us sucess or failure with in a reasonable time like 1 or 2 minutes then we can move on with other options..
Keeping it pending for 24 or 48 hrs and then rejecting or accepting makes the situation miserable for everyone involved ......

 

[Aniket]

Yeah, I too believe that trxn should be failed without debiting the sender's account if it's not getting successful within 1 mins.

@S S V Yes my saying is also same.

That was why I said no pending business for a long time..
Tell us sucess or failure with in a reasonable time like 1 or 2 minutes then we can move on with other options..
Keeping it pending for 24 or 48 hrs and then rejecting or accepting makes the situation miserable for everyone involved ......

 

[Aniket]

Similar kind of thing happened with me too, the merchant was good person, so returned the money.

What I do these days in descending order of preference:
1) Use Credit Card
2) Use Rupay Credit Card UPI
3) Use wallets like Paytm, Phonepe etc
4) Use UPI Lite
5) Use UPI (If QR code is Paytm use Paytm, if Phonepe use PhonePe, I do this because when I complain on the app and they tell the exact status of transaction on merchant side too)

I know everyone has preferred UPI app and most of the transactions will be successful, but that one bad transaction will create lot of issues. Initially it was difficult, but the thing I do is easy after few times.

In my view, If one who don't want any kind of headache for such small merchant, the best way (@ismail) to pay is UPI Lite, seamless payment.

 

[Aniket]

@Abhishek012 logo ka bharosa uth raha hai UPI par se 😅

Bharosa toh uthega hi, jab NPCI redressal system aacha nahi banyega, trxn pending jada der tak rahega

 

[ismail]

going to bank now with a hand written complaint and bank statement.. not sure though of any outcome.

 

[Aniket]

going to bank now with a hand written complaint and bank statement.. not sure though of any outcome.

You don't feel important to answer our questions? If so, my bad!

 

[ismail]

oh sorry,

You don't feel important to answer our questions? If so, my bad!

oh sorry, was pre occupied with many things including this one.
first transaction was done with KIWI app ( not a very popular UPI app, do it sometimes when i remember that it gives some 25paise reward per 100Rs), my bank is IDFC, merc bank showing as Kotak
after first transaction was kept pending used Googlepay app, also linked with the same idfc account. merch bank is Yesbank
I did contact KIWI, but they are asking proofs. I submitted them the bank transaction statement, also explained in email, but they closed the ticket. Have put in a further mail to close my KIWI account. but the app still shows my account

 

[panchabhut]

UPi is still for small payments and for P2P payments. Only few UPI platforms at 100% error free. BHIM is the worst of the lot. For anything more than 500 at merchant, use UPI only if regular CC POS is not available.

 

[Aniket]

oh sorry,

oh sorry, was pre occupied with many things including this one.
first transaction was done with KIWI app ( not a very popular UPI app, do it sometimes when i remember that it gives some 25paise reward per 100Rs), my bank is IDFC, merc bank showing as Kotak
after first transaction was kept pending used Googlepay app, also linked with the same idfc account. merch bank is Yesbank
I did contact KIWI, but they are asking proofs. I submitted them the bank transaction statement, also explained in email, but they closed the ticket. Have put in a further mail to close my KIWI account. but the app still shows my account

Ok got it, now follow what was suggested and keep us informed about updates.