While online shopping has made things significantly easier for the masses, refunds continue to be a pain.
And, the process is no better for a merchant either.
Problem: Refunds Are Hard
The advent of eCommerce has completely changed the retail game. Now, businesses have an opportunity to reach a wider market segment and broaden their profit margins. However, managing RTOs and processing refunds is where the major problem lies.
On being asked about how they handle refunds, most online businesses cite a painful and long refund process that includes a buck-load of back and forth between internal teams and customer follow-ups.
Interestingly, while interviewing their customer support staff, we learned that they spend almost half their time dealing with refund-related issues only.
They claim that,
- Processing refunds is significantly easier when a customer has paid via an online payment mode such as credit/debit card, UPI, wallets, etc. Ideal refund time in such a scenario varies between 5 to 7 working days.
- However, cash is still the king. About 60% of eCommerce customers still prefer to opt for cash on delivery (COD) option
- Processing the refunds in the case of cash-on-deliveries (COD) is a hassle
In the case of CODs, most merchants report their refund cycles as follows.
- The customer places a request for a refund
- The product is picked from the customer’s location/customer couriers it
- If the email address of the customer is available, the Accounts Team sends an email to the customer requesting their bank account number, IFSC, and other necessary details
- If the email address of the customer is not available, the customer support team calls the customer to collect payment details
And, of course, we all know how many of these calls get attended at the first stances. The refund process in such a case is slow and ops heavy and bound to human errors.
Furthermore, the absence of a holistic dashboard to track all refunds and their statuses by the customer support and finance team adds fuel to the already burning fire.
Introducing Payouts Link-based Cashgram
Cashgram by Cashfree Payments is one of the most sought-after and highly sophisticated tools to manage and process refunds.
It’s basically a payout link that a business can directly send to their customers whose bank details are unknown. The link helps collect the necessary information and process refunds almost instantly.
Cashgram by Cashfree Payments makes payouts smooth, user-friendly, and accurate.
- No more waiting for 10-15 working days
- Process instant refunds for all COD orders
Benefits Of Using Payout Links
Cashgram or Payout Links offer the following benefits.
Functional and technical scalability
- Bank agnostic solution (7 banks) for scalability & load balancing
- Highly customizable APIs & UX/UI
- Comprehensive MIS reports for payouts
- Uniqueness and innovation
- Exclusive partnership with Paytm and Amazon Pay wallet
- Link-based notification through WhatsApp business account
- Bulk link creation through a simple file upload
Reliability And Security
- Beneficiary name verification
- Bank account & UPI ID verification
- Maker-checker flow
- OTP validation
Reduced Ops Cost
- Zero operational cost
- End-to-end customer information security
- Negligible incorrect transfers
High Success Rate
- Best in industry success rate
- Auto retry
- Smart routing
- Beneficiary name verification
- Reports for easy reconciliation
- Real-time refund status tracking
- Unique identifier against each transaction
How Does Cashgram Work?
Cashgram is a no-code solution to make instant payouts against COD orders. Using Cashgram is as simple as preparing a cup of tea.
- Go to the Cashfree Payments dashboard and click on Cashgram
- Create a Cashgram or payout link and send them to a customer’s email or registered mobile number. The customer will enter the necessary account details (bank account, UPI, Paytm, Amazon Pay).
- Once submitted, the customer will receive a payout in the preferred account.
Merchants can also use Cashgram’s dashboard to process automated bulk payouts using Cashgram API.
Here’s how it works.
To create Cashgram in bulk,
- Go to Payouts Dashboard > Cashgram > Bulk Cashgram > click on Upload File.
- Download a sample format in which you want to provide the customer details for creating the Cashgram. Fill in the details and save the file.
- Click on Choose File > UPLOAD.
- You’ll get a message stating the file has been successfully uploaded
- The file can include a maximum of 100 rows and the file size should be less than 2 MB
After creating the Bulk Cashgram file, send the file for approval to the approver in the company before sending it to the customers. Once the approver verifies the details and shares their consent, go ahead and release the bulk payout.
Note, the approver can accept or reject the Cashgram. Once approved, the Cashgram links are released to the customer’s source, and the merchant can view the status of each Cashgram payout in the Payout Dashboard.
How Can A Customer Redeem A Cashgram?
Every cashgram created by a merchant comes with an expiry date. Customers must redeem the Cashgram within the specified time.
Here’s how a customer can redeem a Cashgram.
- Click on the Cashgram link sent by the merchant to your email ID or registered mobile number.
- Select a payment method of your choice (Bank Account, UPI, Paytm, or Amazon Pay wallet)
- Enter the required details based on the selected payment method
- Enter a 6-digit OTP sent to your registered mobile number.
- Post validation, the specified amount will get credited to your account of preference
Currently, customers can receive payouts via bank transfers, UPI, or in their Paytm or Amazon Pay wallet.
Is Cashgram Only For Refunds?
Cashgram is an intelligent flow designed to let the customer decide the mode of payment i.e if they want to receive payment in their bank account, wallets, or UPI.
It can also be used in any business scenario where a merchant wants to pay a user instantly without having to collect user payment details.
Some common use cases of Cashgram include,
- COD Refunds/Returns at E-commerce stores
- Reward disbursals on Fantasy Sports/Online Gaming apps
- Payouts to marketing affiliates
- Gifting (alternative to gift cards)
- Disbursals on peer-to-peer (P2P) lending platforms
- Expense reimbursements
The use cases are exhaustive. If you’ve come across an interesting Payout links use case, do let us know in the comment section below. We’ll be happy to hear.
At Cashfree Payments, we believe Cashgram is how the future of refunds in India should look.
Have some more queries around Cashgram by Cashfree Payments? Visit our FAQ – Cashgram section for details.