Why is my completed payment refunded to the buyer?

Instamojo encourages merchants to try out our services with no commitments. To enable everyone to sign up and see if Instamojo works for them, we offer Trial Accounts. The Trial Account lets you try Instamojo before you submit documents for verification. We defer KYC document verification as long as either:

  • Monthly transactions on the account are below Rs. 9,999.
  • No disputes/charge-backs are raised by buyers on transactions.
  • Internal audits (automatic or manual) do not raise any concerns regarding the account.
  • The business category is legally allowed on our platform.

In case either of the above conditions are not met and KYC has not been submitted yet, we reach out to the registered email address to assist in completing the KYC submission. KYC is necessary to function as a regular account on Instamojo, beyond trial.

The Risk and Compliance team performs manual audits of transactions as they happen. If your account was created, and a customer completed a payment - and later the account is flagged during the internal audits, we follow the steps below to resolve the situation:

  • As per Terms of Service (11.1), during an audit if the business category is discovered to be unsupported and the account was created under another category, we will refund the buyers and the account may be suspended.
  • If the category cannot be inferred, we will try to contact you to understand the situation and update the KYC accordingly.
  • If KYC is submitted and accepted, the account is upgraded to regular account and transactions continue as expected.
  • If contacting and understanding business category fails, and we are not authorised to support the products or services, we cannot pay out the amount collected for that business category. Therefore, we refund the buyers and inform you regarding the same.
  • If you have already shipped a product or rendered services, we request you to contact the buyers and collect the amount directly via NEFT or through other channels that support your business category.

We understand that this is not the best experience, however, we are striving to find the balance between easy to experience how Instamojo works and a heavy-handed signup process that demands all information before letting someone sign up.

 

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