Understanding UPI Payment Delays: P2P vs Merchant QR Transactions

[DEEP_RAY]

When making UPI payments between individuals (P2P), the amount is usually credited instantly to the recipient. However, there are times when I have experienced delays, with the transaction status showing as 'PENDING' and the amount getting credited after up to 48 hours.

I am curious about how this process works for merchant payments made via a QR code. Specifically, I believe that when I pay through a merchant's QR code using apps like PhonePe or Google Pay, the payment might first go to the app's account, and then it is settled with the merchant as per their schedule.

What I'd like to understand is whether it's possible for a merchant QR payment to also end up in a 'PENDING' status and only get credited after two days, or if, in the case of merchant payments, the amount is automatically refunded to the source if it gets stuck in pending status.

I'm asking because I am planning to make a large UPI payment in a different city and want to avoid the risk of my payment getting stuck in 'PENDING' for an extended period.

 

[Anupama_Jha]

See, there many scenarios. Let me answer u accordingly.

1. Many times when we send money to any person/merchant, if the payment gets deducted from ur account but doesn't gets credited to another person/merchant and status shows as pending. Then there's 50-50% chances of either getting credited to his/her account or gets refunded back to ur account.

2. Secondly, u asked about P2P and merchant qr.
👉🏻P2P transactions gets credited instantly to the receiver.
👉🏻 Merchant qr - Depends upon which bank's/3rd party like (Phonepe/Paytm/Mobikwik/Amazon) QR has been installed on premises. Many bank's/3rd party offer instant credit to account like Amazon Pay ones.
While many other's offer one time (generally next day) or on manual request.
Phonepe gives 1 manual settlement request every hr.
Similarly, paytm gives many options e.g Instant/once a day (next day 08/10 am)/twice a day or thrice.

Hope this answers all ur query.
Feel free to ask any other doubts😉

 

[Anupama_Jha]

Now you must have one doubt that why payments on merchant qr takes time to credit?

Reason: In any shop/premises, daily hundreds of payments are received. If every trxn gets instantly credited to account, there will be enormous credit entries in passbook. Hence all payments received a day gets credited next day in 99.99% cases.

In few scenarios, when u have sent the amount to merchant, but the acquiring bank (whose qr is installed on shop) supposes it is fraudulent trxn or if there's any chargeback raised on that merchant, then the respective banks puts hold on fund and asks for invoices of sales, cust. signed chargeslip, id card of cust and dispute withdrawal letter. After carefully reviewing the genuinety of documents, the bank release the fund to account.

 

[DEEP_RAY]

See, there many scenarios. Let me answer u accordingly.

1. Many times when we send money to any person/merchant, if the payment gets deducted from ur account but doesn't gets credited to another person/merchant and status shows as pending. Then there's 50-50% chances of either getting credited to his/her account or gets refunded back to ur account.

2. Secondly, u asked about P2P and merchant qr.
👉🏻P2P transactions gets credited instantly to the receiver.
👉🏻 Merchant qr - Depends upon which bank's/3rd party like (Phonepe/Paytm/Mobikwik/Amazon) QR has been installed on premises. Many bank's/3rd party offer instant credit to account like Amazon Pay ones.
While many other's offer one time (generally next day) or on manual request.
Phonepe gives 1 manual settlement request every hr.
Similarly, paytm gives many options e.g Instant/once a day (next day 08/10 am)/twice a day or thrice.

Hope this answers all ur query.
Feel free to ask any other doubts😉

So refund process for failed transaction in UPI works different way than debit / credit cards ? Am I correct ?

 

[Anupama_Jha]

So refund process for failed transaction in UPI works different way than debit / credit cards ? Am I correct ?

Yeah, as per my knowledge it's unsure whether it will be credited to receiver or refunded back to source account