Consumer Complaints Against Payment Platforms

Digital payments have transformed daily life in India, offering unmatched convenience, speed and access. Platforms like UPI, mobile wallets and cards power everything from street vendor purchases to online shopping. Yet, this rapid growth brings challenges: failed transactions, unauthorized debits, delays and frauds that leave users frustrated and out of pocket.

If you’ve faced issues with apps like Paytm, PhonePe, Google Pay or bank UPI services, you have strong options for redressal. This guide covers common complaints, protective laws, the RBI’s grievance system and practical steps to resolve problems. For complex cases, experts at ezyLegal can help.

Common Consumer Complaints Against Payment Platforms

Complaints against digital payment providers have surged with UPI’s dominance. Recent RBI data shows over 13 lakh grievances under its ombudsman scheme in FY25, many tied to mobile/electronic banking.

Key issues include:

• Failed or Delayed Transactions: Money debits but doesn’t credit the recipient, often during outages.
• Unauthorized/Fraudulent Transactions: Debits without consent, from phishing, fake apps or scams.
• Refund Delays: Slow returns for cancelled orders or failed payments.
• Account Freezes/Blocks: Sudden restrictions without clear reasons.
• Poor Customer Support: Unresolved queries or denied claims.
• Hidden Charges or Mis-selling: Unexpected fees or misleading promotions.

These disrupt lives, especially for merchants relying on daily flows. Quick reporting often secures refunds under RBI’s zero-liability rules for prompt unauthorized transaction notifications.

Laws Protecting Consumers in Digital Payments

Several laws and guidelines safeguard users:

• Consumer Protection Act, 2019: Covers digital transactions as services, allowing complaints for deficiencies. Forums handle claims up to ₹2 crore+; e-commerce rules ensure transparency and timely refunds.
• Information Technology Act, 2000: Penalizes hacking, identity theft and fraud (Sections 43, 66, 66C, 66D).
• Digital Personal Data Protection Act, 2023: Gives control over personal/payment data privacy.
• RBI Guidelines: Regulate secure payments, including tokenisation (no storage of full card details) and zero liability for unauthorized transactions reported timely (full reimbursement if not your fault and reported within 3 days).
• Payment and Settlement Systems Act, 2007: Oversees system reliability.

These create accountability, with RBI emphasizing quick resolutions.

The Reserve Bank – Integrated Ombudsman Scheme, 2021

The RBI merged older schemes into the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021, adopting “One Nation One Ombudsman” for unified, cost-free redressal against banks, NBFCs, wallets and payment operators.

It covers deficiencies like failed transactions, unauthorized debits, refund delays and non-adherence to guidelines.

Who Can File?

• Account holders or non-account users (e.g., wallet users).
• Merchants facing gateway issues.
• Anyone affected by regulated entities.

Grounds for Rejection

• No prior complaint to provider.
• Filed >1 year after response (or 1 year + 30 days if no response).
• Frivolous claims or outside scope (e.g., customer disputes).

Compensation

Up to ₹20 lakh for direct loss, plus up to ₹1 lakh for time, expenses, harassment or mental agony.

Complaint Type	Common Examples	Typical Resolution Time	Potential Compensation
Failed Transactions	Debit but no credit	30-90 days	Full refund + interest
Unauthorized Debits	Fraud/phishing	Quick if reported timely	Full amount (zero liability if within 3 days)
Refund Delays	Cancelled orders	14-30 days	Refund + compensation for delay
Account Issues	Unexplained freezes	Varies	Reversal + harassment award

How to File a Complaint

Always start with the provider, resolutions often happen here.

1. Contact the Payment Provider/Bank: Use app support, helpline or email. Provide transaction ID, screenshots, date. They must respond within 30 days.
2. Escalate to RBI Integrated Ombudsman: If unresolved, file free via CMS Portal.
   • Online: Fastest; track status.
   • Email: crpc@rbi.org.in.
   • Post: Centralised Receipt Centre, Chandigarh.
   • Toll-free: 14448 for guidance.
3. Further Steps: If needed, approach National Consumer Helpline (1915) or consumer forums under CPA 2019.

Practical tips: Keep screenshots, reference numbers, communications. Report unauthorized transactions immediately for zero liability. Online filing via CMS is efficient; offline suits those needing help.

Real-World Examples and Experiences

Recent cases highlight issues and resolutions:

1. UPI Outage Delays: Multiple 2025 outages hit PhonePe, Google Pay, Paytm,  users reported stuck payments. Many resolved via app disputes; some escalated to RBI for refunds plus compensation.
2. Fraudulent Debit Scam: Victim lost ₹50,000 to phishing. Reported within hours,  bank reversed under zero liability after cyber complaint.
3. Wrong UPI Transfer: Sent ₹20,000 mistakenly. Recipient refused return; complainant filed RBI case, ombudsman mediated recovery.
4. Refund Denial on Wallet: Paytm delayed failed transaction refund. Escalation to ombudsman yielded full amount plus ₹5,000 harassment compensation.
5. Merchant Gateway Freeze: Business account blocked without reason. RBI intervention unfroze and awarded for lost earnings.

These show prompt action and documentation lead to favourable outcomes. RBI reports high mutual settlements.

Comparisons: Provider vs. RBI vs. Consumer Forum

Option	Cost	Timeline	Scope	Best For
Provider Support	Free	30 days	Internal issues	Quick fixes
RBI Ombudsman	Free	30-90 days	Regulated deficiencies	Failed escalations
Consumer Forum	Low fees	Months-Years	Broader rights	High-value/unfair practices

RBI route is fastest and free for most payment complaints.

Practical Tips for Prevention and Resolution

• Enable alerts; monitor transactions.
• Use official apps; avoid unknown links.
• Report issues immediately for zero liability.
• Save evidence: Screenshots, IDs, chats.
• DIY via CMS portal, simple and trackable.
• For fraud, file cyber report at cybercrime.gov.in alongside.

These steps empower quick recoveries without high costs.

Need help drafting notices, filing with RBI or pursuing forums? Reach out to ezyLegal.

Frequently Asked Questions on Consumer Complaints Against Payment Platforms

Q1. How do I complain about a failed UPI transaction?

Ans1. First contact your app/bank with details. If unresolved in 30 days, escalate via RBI CMS portal.

Q2. What should I do for unauthorized debits?

Ans2. Report immediately to bank/app (within 3 days for zero liability). Block UPI; file cyber complaint.

Q3. Can I get compensation for mental harassment from delays?

Ans3. Yes, RBI ombudsman can award up to ₹1 lakh for time/expenses/harassment.

Q4. Is the RBI ombudsman free?

Ans4. Completely free, including filing and resolution.

Q5. How long does RBI ombudsman take?

Ans5. Typically 30-90 days; many settle mutually faster.

Q6. What if money went to wrong UPI ID?

Ans6. Contact provider; if no return, escalate to RBI, mediation often recovers funds.

Q7. Does zero liability apply to all frauds?

Ans7. Yes if reported timely and not due to your negligence (e.g., sharing OTP).

Q8. Can merchants file complaints?

Ans8. Yes, for gateway issues or settlement delays.

Q9. What documents do I need?

Ans9. Transaction screenshots, reference numbers, bank statements, support communications.

Q10. When should I approach consumer court?

Ans10. For unresolved RBI cases or broader unfair practices; pecuniary limits apply.

Q11. How to file online with RBI?

Ans11. Use https://cms.rbi.org.in, register, fill details, upload proofs.

Q12. Are outages covered?

Ans12. Yes, if causing loss/delays, claim refunds/interest.

Q13. What if provider ignores me?

Ans13. Escalate to RBI after 30 days, they mandate response.

Q14. Can I appeal ombudsman decision?

Ans14. Yes, to RBI Appellate Authority within 30 days.

Q15. Is cyber FIR needed for fraud?

Ans15. Recommended alongside bank report for investigation.