Refund Policy of xPay
Purpose
This policy is intended to:
Define how refunds are handled between customers (buyers), merchants (sellers), and xPay
Ensure refunds are processed in line with applicable regulatory requirements
Ensure refunds are always returned to the original source of funds
Provide a standard process for refund support in case of technical issues
Key Principles
Refunds are merchant-led. Customers must request refunds directly from the merchant.
Only follow-on refunds are supported. Refunds must be linked to an existing successful transaction.
No stand-alone refunds. xPay does not support refunds that are not linked to a prior successful payment.
Refunds go back to the original payment method only. No alternate bank account, wallet, or third-party destination is supported.
Refund Process
3.1 Customer-Initiated Refund Request
The customer raises a refund request directly with the merchant for a specific transaction.
The merchant reviews the request as per its own cancellation and refund policy.
3.2 Merchant-Initiated Refund (Standard)
If approved by the merchant, the merchant can initiate a refund through:
xPay API, or
xPay Merchant Dashboard (via secure merchant login)
Refunds initiated through xPay are automatically processed back to the original source of payment, as required.
3.3 Refund Support for Technical Issues
If the merchant is unable to process a refund due to technical issues, the merchant must contact xPay support and share:
Unique transaction identifier (UTR / Transaction ID)
Relevant transaction details
Confirmation that the merchant has approved the refund
After verification, xPay may, as an exception and on a case-by-case basis, process the refund on the merchant’s behalf. Such refunds will always be processed back to the original source account.
Refund Timelines
Once a refund is successfully processed on the xPay platform, the amount is typically credited back to the customer within 3 to 5 working days, subject to:
Issuing bank timelines
Card network processing timelines
Banking holidays
Other processing or compliance-related checks where applicable
Note: The timeline above is an indicative estimate. Actual credit timelines may vary by bank and payment method.
Regulatory Compliance and Audit Trails
xPay ensures that:
Refunds are processed in accordance with applicable guidelines and regulatory requirements
Refunds are not processed to any alternate account
Appropriate audit trails, transaction logs, and reconciliation records are maintained for monitoring and compliance
Merchant Off-Boarding and Refund Handling
A merchant relationship may end either:
By a voluntary exit request initiated by the merchant, or
By termination initiated by xPay as per the applicable agreement and risk or compliance requirements
6.1 Voluntary Exit by Merchant
A merchant may request deactivation due to reasons like:
Business restructuring
Change in strategic direction
Cessation of operations
Migration to another payment provider
Such requests are processed subject to:
Fulfilment of contractual obligations
Clearance of outstanding liabilities
Completion of settlement and reconciliation
Review of pending disputes, chargebacks, and refunds
6.2 Termination Initiated by xPay
xPay monitors merchant activity and may request clarifications or documentation if it identifies risk concerns. If risks persist or the response is unsatisfactory, xPay may terminate or suspend access in accordance with the merchant agreement and applicable guidelines.
Common grounds for termination or suspension include:
Violation of Terms of Service
High-risk or prohibited activities
Excessive chargebacks or dispute ratio breach
Regulatory non-compliance
Suspicious or fraudulent activity
Failure to provide requested documentation, or providing incorrect documentation
Non-payment of fees or dues
Undisclosed change in business model
Reputation risk impacting xPay
Breach of applicable regulatory guidelines
xPay may suspend transactions immediately where required to contain fraud risk, regulatory exposure, or prevent financial loss.
6.3 Holding of Settlements
Where risk conditions warrant, xPay may hold settlements to cover potential future chargebacks and disputes, including holding settlements for up to 180 days post termination or deactivation, based on risk review and contractual terms.
Fraud, Legal Action, and Misuse
Will xPay pursue legal action against fraudulent merchants?
Yes. If xPay identifies fraudulent activity and obtains sufficient evidence during investigation, xPay may exercise legal remedies.
If reserves or payable merchant funds are insufficient to cover liabilities arising due to fraud or disputes, xPay may pursue recovery through legal mechanisms as permitted under the merchant agreement and applicable law.
8. Chargebacks (Card Payments)
A chargeback is a reversal initiated by a cardholder via their issuing bank. Common reasons include:
Unauthorised transaction (fraud)
Item Not Received (INR)
Significantly Not As Described (SNAD)
As per the applicable terms between the merchant and xPay, the merchant is responsible for chargebacks.
Upon receiving a chargeback notification:
xPay informs the merchant and may place a temporary hold on funds payable to the merchant.
The merchant may either accept or contest the chargeback.
If the merchant accepts, xPay deducts the chargeback amount from payable or held funds.
If the merchant contests, the merchant must submit supporting documents within the timeline shown on the dashboard.
Typical evidence requirements:
INR: Proof of delivery (POD)
SNAD: Supporting documentation, product evidence, and any additional details required
If the outcome is in the merchant’s favor, the hold may be removed and funds released (subject to reconciliation). If the outcome is against the merchant, the chargeback amount will be recovered from held or payable funds.
For chargeback-related support, contact: support@xpaycheckout.com
Dispute Resolution Process (Platform Disputes)
Where applicable, disputes should first be attempted to be resolved directly between buyer and seller. If not resolved, xPay may assist through its dispute resolution framework.
Step 1: Dispute Initiation
The buyer initiates a dispute via the xPay platform (where supported), selecting a dispute reason.
Step 2: Seller Notification and Response
The seller is notified and given a defined time to respond.
If the seller does not respond in time, xPay may return funds held under the arrangement (if applicable) to the buyer.
If the seller responds, both parties may be asked to attempt resolution within a defined time window.
If both parties reach an agreement, they must notify xPay, and xPay will proceed as per the agreed resolution.
Step 3: Escalation to xPay
If unresolved, either party may escalate to xPay’s Resolutions Team. xPay may review evidence and issue a decision based on available information. Failure to provide adequate evidence within the required time may result in a default decision.
Step 4: Arbitration (If Required)
If the dispute cannot be resolved (for example due to insufficient evidence, or due to logistics or customs-related issues), the parties may need to resolve it via arbitration as per the governing agreement. Funds may remain on hold until final resolution.
High-Risk Industries
Some industries may be considered high-risk and may be allowed only on a case-by-case basis, typically with enhanced due diligence and risk-based commercials. These may include (illustrative list):
Airlines, ticketing agencies, travel aggregators (OTAs), DMCs
Aroma, organic and herbal
Auctions
Beauty products and cosmetics
Charities / non-profit organizations
Crowdfunding
Cryptocurrencies and related products
Digital games or virtual world credits
Dropshipping
Fantasy sports, e-sports, tournaments
Games of skill not involving cash prizes
Gems, jewellery and silverware
Licensed financial services, securities, investments
Marketplaces
Private medical practice or online doctor consultation
xPay may update this list from time to time based on risk and compliance requirements.
Reserves and Hold Settlements
Reserves and settlement holds may be applied based on risk review, merchant category, dispute trends, fraud indicators, delivery timelines, and other factors, as permitted under the merchant agreement and applicable guidelines.
Amendments
xPay may update this Refund Policy from time to time to reflect changes in operations, regulatory requirements, or risk practices. The updated version will be published on our website with a revised “Last Updated” date.
For refund support (merchant queries) or policy-related questions, contact:
xPay Support
Email: support@xpaycheckout.com
