I started using online payment options a long time ago when I would assist my dad with his work. The convenience and ease of making payments online are super neat. But one failed transaction and I would go berserk. Payment failure can be a nightmare!
Each time I clicked “pay now” and saw a “your payment is being processed” screen, I would cross my fingers. The anxiety would subside only after seeing a success screen with notifications from the merchant and the bank.
The anxiety would subside only after seeing a success screen with notifications from the merchant and the bank.
Why does payment failure bother us?
So, if online payments are convenient then why do we get anxious each time? There could be several reasons.
Firstly, it is money! Your real money is involved. Anything to do with money is important and cannot be dismissed as a light matter. Hence, your natural response to any activity that shows loss of money is, worry!
No Instant Gratification
Secondly, there is no instant gratification. Buying at shops is an easier experience. You know you can hold the shopkeeper responsible if something goes wrong. Whatever amount you give him you receive an item immediately. We carry this particular behavior while making a transaction online. Hence, if for any reason you do not receive the email notification that you were supposed to receive then you certainly worry.
We tend to have this notion even while making a transaction online and when we do not receive a confirmation, we flip!
Thirdly, trust factor. Believe me, it plays a major role. In this age of the internet where good and bad content co-exists, trusting a platform for transactions has become increasingly difficult.
Because of above reasons, we panic if there are certain errors or failures in payments. If your payment is successful, you will receive a notification from the payment platform (e.g. Instamojo) and from your bank.
When a payment fails, there could be two cases:
1. Your amount is not debited – You might receive a message from your bank that the payment could not be processed. You will also see the payment failure screen.
2. Your amount is debited – In this case, you will be left wondering why you did not see any kind of notification. You can send an email to the payments platform and check the status of that payment.
Nevertheless, let me list down few reasons for a payment failure and why you should not worry about your money.
Some Reasons for Payment Failure:
1. Bad internet connection
A stable internet connection is absolutely necessary for a transaction to go through successfully. If the internet speed fluctuates heavily then it could affect the transaction. Also, closing the tab or window will result in failed payment or incomplete payment.
2. Authorization failure
This is the case where payments platform could not connect with the bank. Such cases do happen frequently. Banks, at times, do not authorize these payments and hence you will see a failure. This goes beyond the control of payments platform. If your money is deducted then you can check with the bank and the platform.
3. Authentication failure – Wrong details entered
Authentication failure results when wrong card details are entered. Or sometimes the OTP cannot be verified or 3D secure password was not entered correctly. In such cases, you receive messages from the bank that the payment could not be processed. Usually, money is not debited and you can try another transaction after few minutes.
4. Delayed notification
Whenever a person makes the transaction, he/she receives notifications from bank and the payments platform. A buyer should receive email about the success of payment. But there could be times when emails are not delivered and SMSs don’t reach buyers. There could be several reasons why these notifications are delayed. You can wait for few hours and if you do not receive any acknowledgment then contact the seller or the payment platform.
5. Payment gateway failure
This happens occasionally with all the payment gateways. Payment gateway failure is purely an infrastructural issue. And when there are issues at the gateway level, such fixes are done by the payment platforms quickly. Your money is either debited or not debited, but it is safe.
In all the above cases it is only but natural to worry. You may contact the company or send them an email about the issue. One thing you need to know is that your money is not going anywhere and is safe.
How do we handle payment failures at Instamojo?
While the vast majority of payments occur smoothly, there are a small number of situations in which you’ll see a change in the status of the payment.
During the payment process, there are a number of redirects (or “hops” as they are referred to in the industry) between various entities.
We have a reconciliation process for everyday settlement, which we receive from our banking partners. Depending on the point in the redirection process, the funds are either credited back into the buyer’s account automatically by their bank or settled to us. If the funds for a given transaction are settled to us- and the status of the transaction per our records is hitherto incomplete or unsuccessful, we update the status to reflect it as successful.
This post has been penned by Maria Martin, Business Development, and Customer Success at Instamojo.
Instamojo is the safest and easiest way to collect and make payments online. Have you experienced Instamojo yet?