Refunds take time. Not anymore; we’ve fixed this.

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.

 

Introducing Cashgram

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.

Frequently asked questions-Cashgram

 

Try Cashgram

 Cashgram is a weblink business use to pay users instantly without collecting their payment details

 Send money directly to any UPI-BHIM ID, PayTM wallet or debit card

 Excellent refund solution especially for COD refunds

 

3 Replies to “Refunds take time. Not anymore; we’ve fixed this.”

  1. Hello there,

    It’s sounds freakin’ awesome, meanwhile there are some doubts that I would like to know or say raise.

    In all e-Commerce businesses, every 1 in 1000 customer’s transaction gets failed and on the same time amount gets debited. Sometimes, merchant don’t even receive the merchant and sometime they receive too.
    In cases, where merchant doesn’t receive amount, and client ask for the refund or the services what he had paid for, then in such situations: (other than conventional methods)

    1. What should the merchant should go for as he also have not received the payment within his account?
    2. Is there any solution relevant to the asked query?
    3. How fast such issues can get resolved so that any one of the party, whether merchant or client, receive money in their account and things can run smooth.

    Advantage: Reducing such transaction settlement time can primarily leads to customer or client satisfaction on our services & website, heading to mouth-to-mouth campaigning, more traffic & increase in revenue & sales.

    One advice: Do edit Website Name with Cashfree Blog in this blog footer copyright section.

    Please let me know. Eagerly waiting for the reply.

    Regards,
    Anshik Bansal

  2. Hi Anshik, good to hear that you liked the product development. Answer to your query: Yes, the amount so deducted (even if it has not reached merchant ) can be refunded, in most cases where payment failed at originating bank , it will be auto-reversed immediately or in 10-15 minutes. Where payment fails at destination bank, it can be reversed in 3-4 working days depending on payment mode. Hope it helps.

    You can read further here How Cashfree helps to track, manage and release refunds instantly.
    https://blog.cashfree.com/whats-new-bulk-refund-processing-on-merchant-dashboard/

    If you are a Shopify Merchant read here: https://blog.cashfree.com/shopify-india-refund-update/

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