As a customer buying online, refunds taking more than a week is something everyone has come across.
The process is no better for a merchant either.
Problem: Refunds are hard
On being asked how they handle refunds, most of our merchants cite a painful and long process with lots of customer follow-ups and back and forth between internal teams.
Interestingly, while interviewing candidates from e-commerce companies for support roles, we learnt that they spent half their time dealing with refund related issues.
Where the payment is online via credit card/debit card/ netbanking, the seller is able to initiate a refund from a dashboard following which payment gateways and banks take about a week to process a refund.
However, more than 50% of the orders and refund requests are still for cash on delivery, where the money is already with the business itself.
Our merchants shared the issues peculiar to COD refunds. Most merchants reported their refund cycle as below:
1) Customer places request for refund
2) The product is picked from the customer’s location/customer couriers it.
3) If email id of the customer is available, the Accounts team sends a mail to the customer requesting for bank account no, IFSC and other required details.
In many cases, where online seller allows guest checkout, the email id in not present. In such cases, the customer supports team has to collect payment details over call.
This process has always been slow and ops heavy. Since payment details are collected manually, errors are frequent.
Further, in the absence of any dashboard where refunds status can be seen the Product, Customer Support and Finance team has to interact to be updated on the status.
We came up with Cashgram after having such conversations with a lot of merchants.
Cashgram is a weblink business can send customers to collect account details and make a payment. Cashgram makes refund processing smooth, user-friendly and accurate.
It reduces the ops cost for businesses to ZERO and lets customers receive money without having to share their account details with a business 😎
How does Cashgram work?
- Business sends a Cashgram link to the customer.
- Customer enters account details (UPI, bank account or PayTM).
- Redeems refund amount
Apart from using the Dashboard for individual payments, there is an API for automated bulk payouts.
Our merchants have shown a lot of love for Cashgram and we believe this is how the future of refunds in India should look like
Is Cashgram only for refunds?
Cashgram is an intelligent flow designed to let the user decide the mode of payment i.e if she wants to receive payment in bank account/Paytm wallet/UPI.
Cashgram can be used in any business scenario where a business wants to pay a user instantly without having to collect user payment details.
Use cases of Cashgram :-
a) COD Refunds/Returns at E-commerce stores
b) Rewards disbursal on Fantasy Sports/Online Gaming apps
c) Payouts to marketing affiliates
d) Gifting (alternative to gift cards)
e) Disbursals on Peer to Peer lending platform
f) Expense reimbursements
If you can come up with interesting use cases, do let me know in comments! I’ll be happy to hear more use cases.
We believe this is how the future of refunds in India should look like.
P.S : We are grateful to folks who voted for Cashgram on Product Hunt, making it Top 3 Product of the Day.