Tell HN: Razorpay a YC company is supporting fraudulent merchants

29 pointssarathyweb3y ago10 comments

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

10 comments

HatchedLake7213y ago

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.

sarathywebOP3y ago

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

TekMol3y ago

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.

tananaev3y ago

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.

saddist03y ago

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.

luckylion3y ago

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.

neximo643y ago

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

thunkshift13y ago

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

wizardofmysore3y ago

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

villgax3y ago

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

j / k navigate · click thread line to collapse

Tell HN: Razorpay a YC company is supporting fraudulent merchants

29 pointssarathyweb3y ago10 comments

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.

Thank you for your understanding.

Regards, Team Razorpay

10 comments

HatchedLake7213y ago

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.

sarathywebOP3y ago

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

TekMol3y ago

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.

tananaev3y ago

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.

saddist03y ago

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.

luckylion3y ago

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.

neximo643y ago

thunkshift13y ago

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

wizardofmysore3y ago

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

villgax3y ago

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

j / k navigate · click thread line to collapse