Tell HN: Razorpay a YC company is supporting fraudulent merchants

[sarathyweb]

Razorpay is an Indian payment gateway. Few weeks back I had purchased two pairs of bookshelf speakers from website. The merchant kept delaying the order and declined to refund the money.

I contacted Razorpay support and raised a dispute.

Today I got the following email from them

Hi XXX,

Thank you for your understanding.

We understand the inconvenience casued.

We request you to kindly get in touch with cyber crime division, as we mentioned in the previous emails that we can't initiate refund from our end because the merchant doesn't have sufficient balance in his account to initiate refund for your transactions.

Thank you for your understanding.

Regards, Team Razorpay

[HatchedLake721]

That’s a bit of a stretch.

A merchant without money doesn’t necessarily mean they’re fraudulent.

And even if they are, this definitely doesn’t mean Razorpay supports fraudulent merchants.

There’s fraud everywhere, especially in finance, with rules and policies to combat that. But they’re never 100% foolproof.

[sarathyweb → HatchedLake721]

Here's the whole story https://vplak-scam.com/2022/10/08/my-awful-experience-with-v...

[TekMol]

I don't think payment gateways should be the judges in payment disputes.

What the web needs is a reputation system. So the dispute ratio of a merchant is visible to everyone.

[tananaev → TekMol]

That's a utopia. Any reputation system will be gamed. Who's going to build it and why would anyone trust it? Even things like Amazon reviews are routinely manipulated.

I think payment gateways are in a good position to take some precautionary steps, like keep some deposit, especially for new clients. They probably shouldn't be entirely responsible for any fraud though.

[saddist0]

It looks more like a "VPLAK" issue not "Razorpay" issue.

Just a simple Google search shows that they have bad reviews. Fill the consumer court complaint against VPLAK and hope for the best.

[luckylion]

HN needs a "I want support and am not happy with what I receive, please be my personal army and bully the company into doing what I want" spinoff.

[neximo64]

This is kind of the problem with using irrevocable 3DSecure/UPI payment. If you had a plain debit/credit card you could call your bank and have them mark it as fraud. Asking Razorpay about it is pretty strange as just the payments provider

[thunkshift1]

They did their part by facilitating the transaction.. why they should be held responsible for the delivery of the goods by some merchant??

[wizardofmysore]

Why is the payment gateway the judge here? File a complaint in consumer court.

[villgax]

Wow so much for KYC & bank account docs that they ask from every onboarded merchant