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Today online banking transactions are essential part of any business activity. Most of the people always feel bubbles in stomach when it is required to pay money throw debit/credit cards. It’s quite obvious to feel insecurity while accruing transaction with unknown merchant which is anywhere in the world. As our professional habits we always used to for insuring each and every aspect of subject matter. Upcoming financial generation will need more interaction with online banking transactions. So as to we must have confidence and surety for doing so. I am sure and hoping that following information given in the article definitely clears your all fear and doubts.

This process is followed by banks and payment COS (Cheque Outsourcing Service) all around the world and no doubt about it.

I give you an example, we receive mails from CCAvenue while we transact on “cabooksonline.com” for reference book of ISCA or any other merchant about confirmation of payment but it doesn’t mean they (cabooksonline.com) have got the money. They get transaction slip from bank that user account had sufficient funds and bank has been debited his account with that particular amount and payment will be made to “cabooksonline.com”. Banks just blocks the particular amount and releases it to merchant via payment gateway on third day. The accounts which holds our funds for transaction gets debited on third day and merchant receives it if and only if they presented successful receipt on day of transaction.

Now take one more example of Mobikwik/PayTM/FreeCharge(All popular mobile recharge merchants) when we add money to it, our wallet don’t get credit by our bank but money is put into wallet by bank where Mobikwik/PayTM/FreeCharge holds accounts and after they receive successful holding of funds receipt from our bank, they credit money in our wallet. It is so fast because of system and we can immediately recharge from wallet balance. On day 3, Mobikwik’s bank a/c receives the payment from our bank if and only if they presented successful receipt on day of transaction.

WHAT IS PROCESS IF TRANSACTION IS FAILED AND OUR BANK ACCOUNT IS ALREADY DEBITED AS THEY GET TRANSACTION SLIP FROM BANK THAT USER ACCOUNT HAD SUFFICIENT FUNDS?

You don’t actually need to visit bank. All you need to do is, call customer care and tell them about failed transaction along with date. Most banks have toll free customer care. So no problem with that.

Please understand that money of failed transactions is hold-ed by banks and it’s on them to refund. But some crap Nationalize/PSU banks don’t have IT system of auto-refunds especially if failed transaction is on international merchant. There is a different process for both domestic and international merchants.

I give you one example:

My cousin uses Citi Bank credit card and he used it on Sendly (international app for mobile recharges). He did transaction on 28th May for Rs.100 Top-Up and paid $1.13 (Rs.71) and his account was debited on 28th May as per statement i.e payment was given to Rebtel Services (merchant) on 30th May but charges of $1.13 (Rs.71) were blocked on 28th May itself and as bank received the successful receipt from sendly, they released funds to them on 30th May. He did another transaction using same card on 29th May and it was a failure. Banks blocked the funds but as it was failed transaction, they didn’t release funds to sendly on 31st May and his account was credited on 1st June i.e credit card statement shown a reversal. This is how it all works. Sendly don’t lie when they say they don’t get funds for failed transaction. It is a truth and you need to understand whole system.

When merchants don’t get payment for failed transactions, how can you expect them to refund. On their part they just send failure receipt of transaction to bank and it is bank duty to refund the amount on time i.e on 4th day but as I said most private banks auto-refund and others Nationalize/PSU banks don’t have IT system of auto-refunds especially if failed transaction is on international merchant.

One of my friend using ICICI Bank debit card had a failed transaction on 10th April and his money was auto-refunded on 14th April. If you don’t get it as many banks don’t have auto-credit process, you have to call them. It is the bank who keeps the money of failed transaction in their “sundry account” and not online merchants.

You can ask online merchant of refund if your transaction is shown successful but you don’t get the service/product then only merchant can help in refund. For failed transactions they or any other online merchant never receives the payment from bank. Bank just deducts it from our account and pay to merchant only if transaction is successful otherwise they hold in their own “sundry account”. if your transaction fails, you don’t need to contact online merchant. Wait for 72 hrs and then contact your bank for refund.

Most of the people here in India don’t understand the payment mechanism and they blame service providers. If your transaction is successful and you don’t get the service/product as per T&C then you need to contact merchant. In case of failures, contact bank after 72 hrs.

If you are concerned about your debit or credit card details then you can create VCC i.e Virtual Credit Card. It is a disposable payment card used for one-time purchases on the Internet. It consists of a single-use credit card number generated by the credit card issuer. If you have account in SBI/HDFC or use any online VCC providers.

Thanking you in anticipation

With regards

BHARGAV H NATHWANI.

E-mail: nathwani.bhargav@gmail.com


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Category Info Technology, Other Articles by - CA Bhargav Nathwani 



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