UnfairGaps
🇮🇳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

This pain point represents a significant opportunity for B2B solutions targeting Online and Mail Order Retail.

Affected Stakeholders

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

Action Plan

Run AI-powered research on this problem. Each action generates a detailed report with sources.

Methodology & Sources

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

Related Business Risks