Customers to get auto-refund if Bangla QR transactions fail

Bangladesh Bank has set fixed deadlines for banks, mobile financial service (MFS) providers and payment service providers to settle customer disputes over Bangla QR payments, with the new rules taking effect from December 1.

The central bank issued the guideline on Dispute Resolution for Bangla QR (Merchant Payment) Transactions yesterday to speed up the handling of failed, disputed and fraudulent payments and give customers clearer timelines for getting their money back.

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Under the new rules, if a customer’s account is debited but a transaction fails, and the merchant does not receive the money, the issuing bank or MFS provider must automatically return the amount in real time or within 30 minutes at most. Customers will not have to file a complaint in such cases.

For disputes that cannot be settled automatically, customers can file complaints within 45 days of the transaction. The issuer must accept or reject a claim within two working days. If it fails to do so, the case will move to a formal chargeback process through the National Payment Switch Bangladesh’s (NPSB) centralised Dispute Management System (DMS).

Acquiring institutions will have seven days to respond to a chargeback. If the dispute remains unresolved, it can go to arbitration, which must be completed within 30 days.

The guideline introduces eight standard chargeback reason codes for issues such as goods not received, duplicate payments, incorrect billing and cases where a customer’s account is debited but the merchant does not receive the money. The codes are intended to make dispute processing more consistent across institutions.

A new Transaction Status Inquiry (TSI) mechanism will also allow issuers to check a payment’s status instantly with acquiring institutions when the outcome of a transaction is unclear. This is expected to reduce the need for customers to file manual disputes.

Merchants seeking refunds will have 60 days to submit their requests, while acquirers must respond within two working days.

The guideline also sets a 30-day period for investigating suspected unauthorised or fraudulent transactions.

Customers must be reimbursed within three business days if an institution’s system failure or security lapse is found to have caused the loss. However, claims can be rejected if there is evidence of customer negligence or misconduct.

An institution that fails to provide transaction evidence during a dispute will be liable for the disputed amount and may also face a penalty of up to the same amount.

Bangladesh Bank said banks, MFS providers and other payment service providers could face supervisory action if they fail to meet the deadlines or reject claims without proper justification.WIDER QR INCENTIVE NET

Meanwhile, the central bank has expanded the category of merchants eligible for cash incentives on Bangla QR transactions to encourage digital payments among small and micro retailers.

Bangladesh Bank issued a circular in this regard yesterday, extending the incentives beyond onboarded small and marginal sellers to other trade-licence-holding merchants that use Bangla QR-based NPSB channels.

Under the revised rule, for every Bangla QR transaction of up to Tk 2,000, Bangladesh Bank will pay a monthly incentive equivalent to 0.10 percent of the transaction value to the acquiring institution and 0.20 percent to the issuing institution. All other terms of the original circular will remain unchanged.

Earlier, the incentive was available only for onboarded small sellers.