unfair practices [2]: refund will be processed after x days

[ltf4ever]

most of us would have created a return or refund request on various online apps and e-commerce websites.
you would then be familiar with messages like 'refund initiated with transactionid xyz. money will be credited to your original source of payment within 7 working days'.
in the age of instant and realtime upi, imps, rtgs and even neft every half an hour, 7 days time is ridiculous. even if we give them 1 day to settle their accounts in batches, the apps should be able to easily refund the amount within 24 hours.

is there any logical explanation for this? is this something that banks are falling short in their service? at a consumer level, it won't matter much. but imagine the number of cancellations and returns happening during sale and festive season. lakhs of rupees are available to these apps on a 0% interest for these 7 days. an unfair trade practice in my opinion.
maybe they want to push customers to using their wallet that claims instant wallet refunds. but still not a valid reason for them to gain monetary profits where instant and automated payment methods are available to them.

 

[zealot]

most of us would have created a return or refund request on various online apps and e-commerce websites.
you would then be familiar with messages like 'refund initiated with transactionid xyz. money will be credited to your original source of payment within 7 working days'.
in the age of instant and realtime upi, imps, rtgs and even neft every half an hour, 7 days time is ridiculous. even if we give them 1 day to settle their accounts in batches, the apps should be able to easily refund the amount within 24 hours.

is there any logical explanation for this? is this something that banks are falling short in their service? at a consumer level, it won't matter much. but imagine the number of cancellations and returns happening during sale and festive season. lakhs of rupees are available to these apps on a 0% interest for these 7 days. an unfair trade practice in my opinion.
maybe they want to push customers to using their wallet that claims instant wallet refunds. but still not a valid reason for them to gain monetary profits where instant and automated payment methods are available to them.

For Me, Received the refund mostly in 2days on Amazon and Flipkart with Cards and UPI. Only net banking payments took about a week for refund (faced one time).

 

[Deleted member 5552]

Most of the times I get UPI refund instantly or same day. But problem is with debit card and credit cards. Amazon and Flipkart process refund within minutes, this is bank which delays to credit refund amount in account. ICICI and HDFC are waste and they take more than 5 days in most of the cases

 

[AsB]

most of us would have created a return or refund request on various online apps and e-commerce websites.
you would then be familiar with messages like 'refund initiated with transactionid xyz. money will be credited to your original source of payment within 7 working days'.
in the age of instant and realtime upi, imps, rtgs and even neft every half an hour, 7 days time is ridiculous. even if we give them 1 day to settle their accounts in batches, the apps should be able to easily refund the amount within 24 hours.

is there any logical explanation for this? is this something that banks are falling short in their service? at a consumer level, it won't matter much. but imagine the number of cancellations and returns happening during sale and festive season. lakhs of rupees are available to these apps on a 0% interest for these 7 days. an unfair trade practice in my opinion.
maybe they want to push customers to using their wallet that claims instant wallet refunds. but still not a valid reason for them to gain monetary profits where instant and automated payment methods are available to them.

One YouTuber actually gave a reason, which I think is applicable. He said that banks take time to deposit the money to customer (refund values) or Seller (while buying) in 2-7 days. This is because, while holding the money for that period, they invest it in stocks and markets to gain some more money.
Now, Rs 5000 or 1,00,000 need not look much for one customer, but imagine per day total transactions. That is an incredible value.
This is the reason why card payments and refunds into those payments are delayed

 

[ltf4ever]

One YouTuber actually gave a reason, which I think is applicable. He said that banks take time to deposit the money to customer (refund values) or Seller (while buying) in 2-7 days. This is because, while holding the money for that period, they invest it in stocks and markets to gain some more money.
Now, Rs 5000 or 1,00,000 need not look much for one customer, but imagine per day total transactions. That is an incredible value.
This is the reason why card payments and refunds into those payments are delayed

sounds similar to Scam 1992.
here's how -
seller: party who sells treasury securities.
buyer: party buying these securities.
refund transaction id: bank receipts (BR)
banks: scammer (big bull) !!

there, money meant for buying treasuries was diverted to stock market. here, money meant for buying shirts, pants, household products is diverted into stock/bond markets.

also, the customer ends up losing interest for 7 days on that amount.

 

[AsB]

sounds similar to Scam 1992.
here's how -
seller: party who sells treasury securities.
buyer: party buying these securities.
refund transaction id: bank receipts (BR)
banks: scammer (big bull) !!

Not really. Banks do it, not sellers. And all banks do it.

 

[ltf4ever]

Not really. Banks do it, not sellers. And all banks do it.

yup...all banks might be doing it.. as it was the convention in the early 90's that almost all brokers did it. until it became so big and the loophole was recognized so the guidelines were brought in to stop this misuse of brs.

 

[TheMentalist]

Even CC bill payments take 0-5 days to credit, I don't think banks are investing that money (their own) in stock markets during that period

Its just that for refunds, a payment system which is seamless/interoperable hasn't been developed since its one (eg: amazon) to many (customers) system