Abhishek012
TF Pioneer
First understand a simple thing. You might have heard in the news that many Indians are scamming old age people in the US who don't know how to use digital transactions.
Have you ever wondered why old age people in the US struggle with digital or card transactions, even though card payments were introduced there decades ago when they were young? Why is that?
It's because, in the initial days, the failure rate of card transactions was very high. People's money would get stuck, and it would take months to get it back. Over time, they lost confidence, thinking card payments would never work reliably.
The same situation is happening with UPI now.
Always remember, any product in its Mark 1 phase is flawed. It starts becoming perfect around Mark 3 or Mark 4.
Take card payments, for example — they are currently at Mark 7, while UPI has just entered Mark 3, and that too only bank account link UPI.
Of course, Visa/Mastercard companies have never officially announced what version or Mark they are at. I'm just estimating based on how many times they've upgraded their 3D secure gateways.
It's not just about UPI here; instant payment systems are being developed in the US, Europe, and every country now.
Visa and Mastercard have even stopped calling themselves credit card companies and are heavily investing in instant payment systems.
Instant payment systems are the future.
When it comes to chargebacks, the UPI chargeback system is much better than card payments, but some bank employees still don’t have sufficient knowledge about UPI disputes.
In card transaction disputes, it takes 30 to 45 days, and sometimes you have to wait upto 90 days.
For UPI disputes, it’s true that banks ask you to wait 5-7 business days, but 99% of the time, the refund comes the same day or within 24 hours at most. And if you escalate the issue to a higher level after a week (filing a second complaint), the refund is usually processed within 3 days to 1 week (I just want to inform you that the bank's higher-level support team takes UPI chargebacks seriously).
The point is that UPI refunds are 1000 times faster compared to card refunds.
$$$ Payment on NPCI circular - it’s something that banks or merchants have to bear, not the customers. Even in card payment disputes, $$$ have to be paid, and it’s the banks or merchants who cover it. Card transaction disputes are also not free; it’s just that customers are not charged for it.
The last thing I’ll say is that there are cashback/rewards on credit card UPI transactions as well. The capping will also be removed in the future. Right now, credit card UPI transactions are still in the testing phase, and it will take a few years. Just like in the beginning, there weren’t many rewards/cashbacks on credit card transactions.
