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

[sun156]

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.

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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.

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@TechnoFino @SSV @Vasuki @Batmanbaba @Abhishek012 @as33 @Tejo @Chaitanya-a

 

[Abhishek012]

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.

I think UPI chargeback code - 1063 apply here or U3/UC - RC121.

Full circular - https://www.npci.org.in/PDF/npci/up...of-NRP-PRD-process-arbitration-guidelines.pdf