This is an important announcement that concerns the online payment gateway services and its processes related to “RuPay Cards”. In a circular dated 27th January 2020 the National Payments Corporation of India (NPCI) has mandated the Harmonization of Turn Around Time (TAT) and Customer Compensation for failed transactions on RuPay Cards based on RBI guidelines for all authorized Payment Gateway Systems.
Enclosed is the NPCI Circular in this regard effective 10th Feb 2020 where any chargeback dispute raised by the Issuing Bank (for Repay Card Transactions only) with “Reason code – 1065 ACCOUNT DEBITED BUT CONFIRMATION NOT RECEIVED AT MERCHANT” will attract a penalty fee of Rs 100.00 per day beyond T+5 calendar days (where T is the transaction date) in case Merchant/Clients is accepting the Chargeback.
# Actionable for Merchants/Clients to avoid Chargeback under Reason Code -1065 :
Therefore, it is imperative to process the refund/credit adjustment at T+2 calendar days (for failed transactions) to allow sufficient time for the refund/credit adjustment to reach the end customer. This will avoid any Chargeback & Compensation scenarios in the online payment systems.
We would thus request you to kindly take necessary steps at your end for the verification of the payments and initiation of any disputed payments on time to avoid any inconveniences.
Click here to view the NPCI Circular Ref No. NPCI/2019-20/RuPay/033 dated 27th January 2020
Please feel free to contact us for any further clarifications or queries.