🇮🇳India

Manual Authorization Verification & Chargeback Resolution Bottleneck

3 verified sources

Definition

Payment authorization is a multi-step process[1][2]: customer initiates → gateway sends request → bank verifies → approval returned → funds held. Without automated tracking, merchants manually check authorization codes, cross-reference with orders, and escalate declines. Chargebacks add 5–10 additional hours/month for resolution.

Key Findings

  • Financial Impact: ₹40,000–₹80,000/month (20–40 hours @ ₹2,000–₹2,500/hour staff cost); 2–3 day settlement delay = ₹5–₹20 lakhs tied up in AR for ₹10 crore GMV; chargeback fees = ₹500–₹5,000 per incident
  • Frequency: Daily (per transaction batch); monthly chargeback cycles; quarterly settlement audits
  • Root Cause: Manual authorization response tracking; lack of real-time payment gateway API integration; siloed bank communication channels; paper-based chargeback documentation

Why This Matters

The Pitch: Indian SME retailers waste 20–40 hours/month on manual authorization reconciliation. Automation of authorization response handling and real-time settlement dashboards eliminate manual verification bottlenecks and accelerate time-to-cash by 2–3 days.

Affected Stakeholders

Payment Operations Manager, Accounts Receivable Specialist, Finance Team, Customer Service (Escalations)

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

RBI Strong Customer Authentication (SCA) Non-Compliance & OTP Failures

₹50,000–₹5,00,000 per violation; typical e-commerce sites lose 3–8% transaction volume (₹10–₹50 lakhs annually for ₹10 crore GMV); manual support escalation = ₹500–₹2,000 per failed transaction

Settlement Delay & Acquirer Hold-Back Period

₹15–₹50 lakhs locked in AR per ₹10 crore GMV; opportunity cost = 8–12% annualized (₹12–₹60 lakhs/year); settlement fees = 0.5–1.5% of transaction value (₹50–₹150 lakhs/year for ₹10 crore GMV)

अतिरिक्त स्टॉक होल्डिंग लागत

₹10-20% excess inventory carrying cost (15-20% annual rate)[2][8]

धोखाधड़ी जाँच पर अतिरिक्त कर्मचारी लागत

₹2-3 lakhs/month in analyst overtime and training

स्टॉकआउट और ओवरसेलिंग हानि

₹2-5% revenue loss from stockouts and overselling[2][3]

इन्वेंटरी संकोचन

₹1-3% of inventory value annually to shrinkage[1][2]

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