The challenge

Like many other e-commerce providers in India, the company has a high rate of return transactions. To improve customer experience, the company wanted to develop a seamless process for their customers to receive Cash on Delivery refunds. Once the company receive the returned goods they wish to immediately issue a refund payment and receive a confirmation that the customer has received the transaction in real-time.

Specific goals of the project include:

1. Process a high volume of Cash on Delivery payment transactions in a real-time basis.
2. Deliver operational efficiency to manage the rapid increase in the number of refunds.
3. Automated reconciliation at a transaction level.
4. End-to-end implementation to be completed within 2 weeks.

The solution

HSBC offered a unique solution of Real-time Payment Initiation API integrated with a customized disbursement solution to support the expected high volume of transactions per day. 

Following the request for refund and the return of goods, the company use HSBC’s Real-time Payment API to trigger an instant payment using the IMPS (Immediate Payment Service) network. This API is triggered from the company’s own automated refund processing workflow so improving internal efficiencies and enabling transaction-level reconciliation. An immediate payment acknowledgment is returned confirming that the funds have been paid to the beneficiary’s account so enhancing the customer experience during the refund process.

The end result was an automated process, delivered within the 2 week deadline, that meets the company's objectives and provides a "wow factor" for the company's customers.

Benefits

• Faster processing of refunds using the Real-time Payment Initiation API
• Higher transaction bandwidth enabling the company's systems to process greater volumes
• Improved automation providing internal efficiencies
• Enhanced customer experience leading to competitive advantage

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