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

 

[gauravbhati]

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.

Great ... It is good to use when the Rupay CC doesn't work or when some merchant does not allow rupay cc payments...

 

[#aniket]

Yup, did it. indeed its good answer

@ismail Thank you, it would have been better if you mark this too as well which will act as solution as shown in screenshot.

 

[CosmicCat]

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.

UPI Lite transactions can still fail in certain cases, like when the Beneficiary Bank (Recipient) is down, or when there are intermittent issues with NPCI's servers.

Moreover, in case of failures with UPI Lite transactions, your point of contact would be your TPAP (GPay, PhonePe, etc.), and the Issuing Bank would not take responsibility for it.

Also, as I've mentioned, UPI Lite balance is stored locally, and apps like BHIM UPI don't sync the balance. Many BHIM UPI users have reported to have lost all the UPI Lite balance after performing just an app update.

There may be cases where your phone gets dead or damaged, and the whole OS maybe needs to be reformatted. In such cases, you might be doomed.

Although in every article, it is asked to contact the Issuing Bank if the UPI Lite balance is lost, but the reality is different. Until strong policies are enforced, don't store a larger balance in your UPI Lite account.

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

Have you checked if the recipient had both NFC and UPI Lite X enabled?

 

[#aniket]

UPI Lite transactions can still fail in certain cases, like when the Beneficiary Bank (Recipient) is down, or when there are intermittent issues with NPCI's servers.

Yes bro I had quoted this earlier too. See 👇

so it doesn't matter if your bank server is slow but it does matter with beneficiary bank,

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.

It's obvious that one bank's has no responsibility on making payment through UPI lite as your money (UPI Lite balance) lies in a wallet by which payment takes place but not with one's bank account. Also, when one's bank facing issues on receiving money, TPAP suggest you beforehand.

Moreover, in case of failures with UPI Lite transactions, your point of contact would be your TPAP (GPay, PhonePe, etc.), and the Issuing Bank would not take responsibility for it.

Also, I haven't suggested him Bhim UPI for this, rather pointed to Paytm, which is the one who started this as a private player and I had never faced a single issue.

Also, as I've mentioned, UPI Lite balance is stored locally, and apps like BHIM UPI don't sync the balance. Many BHIM UPI users have reported to have lost all the UPI Lite balance after performing just an app update.

Everything has its pros and cons bro, one want to transact seamlessly, without entering PIN, without being dependent on your babk server, without making one's bank statement cluttered. Any point of time one can put only 2000, and UPI Lite money of Paytm/ Phonepay get synchronised automatically. So, no need to worry as majority of the users use Phonepay, Google Pay & Paytm having 90% (around) market share, until you're using buggy so called BHIM. (less than 1% share 😂).

There may be cases where your phone gets dead or damaged, and the whole OS maybe needs to be reformatted. In such cases, you might be doomed.

Although in every article, it is asked to contact the Issuing Bank if the UPI Lite balance is lost, but the reality is different. Until strong policies are enforced, don't store a larger balance in your UPI Lite account.

Yes bro, both the devices were NFC enabled. Under setting, we both weren't able to find Bhim APP in NFC category even after uninstalling Paytm (default NFC payment app)

Have you checked if the recipient had both NFC and UPI Lite X enabled?

 

[John123]

Let me share my experience. I barely use HDFC bank app. I have taken the merchants number and HDFC has showed me the UPI address and then I have transferred the money. In reality, this upi address doesn't exist lol. Complained to CC and got refund after a week.

 

[abhiver]

My personal opinion regarding UPI is as follows:

If paying through bank account - then I don't use UPU because it is as good as payment in cash... Payment fail ke risk se roh better cash payment use kar luin, unless koi Reward plan chal raha ho usmein.

If paying through Rupay Credit Card link UPI, then it is my TOP priority because wahan I can dispute the transaction if something wrong happen like your case.

So my use case for UPI is , I use it only if I can pay through linked credit card or I am paying to a regular Shop, jahan fund settlement ki jyada tension nahi.

 

[rajcasio]

I paid 50 INR to a local shop in JAN using PAYTM UPI LITE. The transaction was successful.
After one week the shop owner (we know each other) called me and told me that the amount is not received yet.
Today MAR 07 i visited the shop again and found out he didn't received the money after checking his passbook. I paid him 50 in cash.
Used help in transaction page in PAYTM and i was not satisfied with the BOT reply.
What should i do now?

 

[asm07]

Will miss paytm payments bank for this very reason. It's the only bank I could totally rely for upi payments at shops. For banks like sbi etc. be mentally prepared for doing the dishes.