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

 

[Deleted member 19066]

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 First Paid to merchant which Failed..

Again Paid but this time Alternate number that's Your biggest Mistake.

In this case you must scan QR with Another App.. I regularly use CRED and It never Stuck...

If One stuck then pay via Different app.. But QR MUST BE SAME..

So in case any issue happens then you can Take Action

 

[prash1161]

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..

There's ministry of affairs portal to report fraud

 

[mgforce]

I think in such cases where the first transaction is pending etc, if making payment again, do it to the same UPI handle and with same method.

This way, it is easier to ask for chargeback / dispute etc.

Edit: @Guidence also posted same - different wordings but essence is same.

 

[Deleted member 19066]

I think in such cases, first transaction pending etc, if making payment again, do it to the same UPI handle and with same method.

This way, it is easier to ask for chargeback / dispute etc.

Yes..Exactly... Why he paid to alternate number

 

[mgforce]

Yes..Exactly... Why he paid to alternate number

May be Merchant, said try to this one or so!

 

[prash1161]

Same happened to me while paying for auto ride. Paid 50rs 3 times in pending. Realised that it's the problem from receiver bank so paid cash . After a day it was successful. 🤣

 

[NOOBY]

Was using Payzapp, after entering UPI PIN, then app took me back to "pay" page. Got no sms/mail confirmation (waited for 2 mins). Once I scanned the same QR again and paid the same amount again via same card, got 2 confirmation mails and sms

Asked Merchant to check his account, as he got it twice he returned amount in cash..

But yeah, UPI isn't as trustworthy as it was before. Always use CC-UPI so that you can chargeback.

 

[#aniket]

I think in such cases where the first transaction is pending etc, if making payment again, do it to the same UPI handle and with same method.

This way, it is easier to ask for chargeback / dispute etc.

Edit: @Guidence also posted same - different wordings but essence is same.

Not only this, he neither captured any screenshot of pending nor recorded the conversation between merchant. 😐

It's hard to prove himself for chargeback or refund but not impossible.

 

[infinia_finally]

My father faced similar issues with Paytm. Merchant didn't get money in front of him. But he never got refund.

 

[ismail]

UPDATE :
Before approaching the bank with the complaint letter, called the merchant a final time- he said he will check as he was very very busy the whole week
after giving 24 hrs time, i called him, he did not pick up, the called him every hourly 20 times, he picked up finally after another day and said will transfer back the money by night
He did not do so that night, the next day i had to call again every hour 20-30 times, still he did not anser, the next day he said he will transfer by night
He did not do so by night, again called him some times, each time he does not pick up, he then puts a msg that he will transfer after seeing his accounts
today morning 1:15 he sent the money

So finally i got the money, but its not a pleasant experience, begging for ones own money. Still do not like and will not do UPI for amounts of more than 100

 

[#aniket]

UPDATE :
Before approaching the bank with the complaint letter, called the merchant a final time- he said he will check as he was very very busy the whole week
after giving 24 hrs time, i called him, he did not pick up, the called him every hourly 20 times, he picked up finally after another day and said will transfer back the money by night
He did not do so that night, the next day i had to call again every hour 20-30 times, still he did not anser, the next day he said he will transfer by night
He did not do so by night, again called him some times, each time he does not pick up, he then puts a msg that he will transfer after seeing his accounts
today morning 1:15 he sent the money

So finally i got the money, but its not a pleasant experience, begging for ones own money. Still do not like and will not do UPI for amounts of more than 100

 

[#aniket]

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.

@ismail So you can mark this comment of mine as a best answer.

UPDATE :
Before approaching the bank with the complaint letter, called the merchant a final time- he said he will check as he was very very busy the whole week
after giving 24 hrs time, i called him, he did not pick up, the called him every hourly 20 times, he picked up finally after another day and said will transfer back the money by night
He did not do so that night, the next day i had to call again every hour 20-30 times, still he did not anser, the next day he said he will transfer by night
He did not do so by night, again called him some times, each time he does not pick up, he then puts a msg that he will transfer after seeing his accounts
today morning 1:15 he sent the money

So finally i got the money, but its not a pleasant experience, begging for ones own money. Still do not like and will not do UPI for amounts of more than 100

 

[ismail]

@ismail So you can mark my this comment as best answer.

Yup, did it. indeed its good answer

 

[#aniket]

Yup, did it. indeed its good answer

@ismail Now keep these things in mind, this may help you:

-Never ever go to such shops.
-Use UPI Lite , CC on UPI, Card Payment wherever possible.
- Immediately take the screenshot when the payment goes in pending.
- If it's taking time more than 5 mins, then initiate the conversation with the merchant that I am going to pay you again but one of my payment is still pending, if it will get credited too later, then you have to refund my money nicely.

Don't forget to record your conversation. That's all.

Lastly, though you don't like, use cash as you stated.

 

[CosmicCat]

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 already provided a detailed answer. I'd like to add more:
1. Do not use UPI Lite. Currently, the balance is stored locally on your device. Once the app is reset or you install it on a new phone, your balance would go in vain, and retrieving it would be a hassling experience.

2. If it's a large amount and you insist on using UPI only, ALWAYS use the bank's official app for the payment. Because typically, banks always put the blame on the TPAP (The UPI app) for any disputes. And fighting is always exhausting and time-consuming. Keep that in mind.

 

[#aniket]

@#aniket already provided a detailed answer. I'd like to add more:
1. Do not use UPI Lite. Currently, the balance is stored locally on your device. Once the app is reset or you install it on a new phone, your balance would go in vain, and retrieving it would be a hassling experience.

2. If it's a large amount and you insist on using UPI only, ALWAYS use the bank's official app for the payment. Because typically, banks always put the blame on the TPAP (The UPI app) for any disputes. And fighting is always time-consuming. Keep that in mind.

Thank you @CosmicCat

1) UPI Lite: I have assumed that resetting or uninstalling is not carried out, and that's obvious, that after doing so he needs to check before making any payment.

2) Usually for Merchant UPI means: Paytm, Phonepay, Google Pay. They are used to the screen shown after the payments of these app. If there won't be any Speaker to announce money received, when the payment is made from Bank's App then this may create chaos, every merchants are good enough to identify and track the money online. That's is why, I haven't talked about this side.😐

 

[gauravbhati]

The payments of UPI Lite goes smoothly even if the bank server is low ?? @#aniket

 

[#aniket]

The payments of UPI Lite goes smoothly even if the bank server is low ?? @#aniket

Yes bro UPI Lite has nothing to do with your bank account server on making payments, it is only required to add money in UPI Lite, as it as a kind of wallet, where you keep maximum ₹2000 at any point of time, you can transact max ₹500 upto ₹4000 per day (you can add ₹2000 twice in a day) but this amount get transferred into beneficiary bank A/c instead in his wallet or UPI Lite account after making payment, so it doesn't matter if your bank server is slow but it does matter with beneficiary bank, which was rare in case of Paytm, but usually app suggests you that presently, beneficiary bank is facing high UPI failure.

More: Currently, BHIM have UPI Lite X feature, which is the combination of both UPI Lite and Tap to Pay based on NFC (works even without internet connection, but while I was trying to give a trail, it didn't work.

 

[gauravbhati]

Yes bro UPI Lite has nothing to do with your bank account server on making payments, it is only required to add money in UPI Lite, as it as a kind of wallet, where you keep maximum ₹2000 at any point of time, you can transact max ₹500 upto ₹4000 per day (you can add ₹2000 twice in a day) but this amount get transferred into beneficiary bank A/c instead in his wallet or UPI Lite account after making payment, so it doesn't matter if your bank server is slow but it does matter with beneficiary bank, which was rare in case of Paytm, but usually app suggests you that presently, beneficiary bank is facing high UPI failure.

More: Currently, BHIM have UPI Lite X feature, which is the combination of both UPI Lite and Tap to Pay based on NFC (works even without internet connection, but while I was trying to give a trail, it didn't work.

Thanks for the explanation... this sounds good... Will activate it today ... 😁

 

[#aniket]

Thanks for the explanation... this sounds good... Will activate it today ... 😁

Some more info: With UPI Lite, you're are not required to enter a 4 or 6-digit PIN while making payments which makes it seamless for small amount (so activate/ on Paytm Security Shiled if you're on Paytm or add app lock; choice is your PIN or Fingerprint), also there are no cap on the number of transactions, these trxns details are not going to visible on your bank statement but you can view on the TPAP app easily. You can transfer your UPI Lite balance directly to you primary linked bank account by deactivating it gor free.