What is fraud? (In the context of E-commerce business)

Fraud at Paytm Mall is considered to be a deliberate action of deceiving Paytm Mall or its partners to secure unfair or unlawful gain which may hamper customer experience directly or indirectly as well as may cause damages (financial, Brand Image, False Representation, Loss of Business) to Paytm Mall, its resources or its partners.

Paytm Mall promotes fair practice of conducting genuine transactions on its platform, and a fraudulent activity goes against this commitment.

Below are some of the cases which are classified under fraudulent malpractice under Merchant Fraud:

> Collusion: This typically exists in nature where you and/or buyer are not entering into a genuine & valid transaction. Paytm may penalize and take severe actions on a merchant under this case.

To avoid this, you must not:

  • Enter into a transaction(s) with the buyer where the nature of transaction is induced to cause damages or commit fraud
  • Enter or receive orders that indicate an unnatural and biased order velocity trend
  • Impersonate a buyer to book invalid orders under natural, unbiased circumstances
  • Receive orders from a suspicious, fake or not a genuine customer
  • Work with any other party to receive fraudulent orders that indicate an ingenuine transaction and typically cause damages to Paytm Mall.
  • Place orders for his own products, especially taking advantage of the offers and promotions meant for other genuine customers

> Shipping anything other than the product ordered: A seller is committed to deliver the exact same product that the customer has ordered. Falling short of this commitment is considered as a severe case of Fraud.

Hence you should not: 

  • Ship a replica of the product ordered
  • Ship a used /refurbished product that may represent or look like the product ordered but is not in actual
  • Ship partial product or ship any object/product that does not (in look, feel or value) represent the same product

If the count of your Empty box cases is more than 0.1% of the entire orders with Paytm, you are liable to pay a heavy penalty and being barred from doing business on the Paytm Mall platform.

YOU responsible for the shipments leaving your facility, and must take necessary steps for monitoring the picking, packing and shipping of products in his workplace. Please note, that you are accountable for any mistake and malpractice of the personnel and workforce in your facility.

Below are some of the best practices which must be followed by you:

  • Always maintain a stock of authentic brand new products
  • Ensure that the image on the catalogue is that of the same product
  • Keep a CCTV camera to monitor shop floor and physical inspection of products helps improve the quality of fulfilment
  • Always employ a workforce comprising of sincerity and good work ethics
  • Employing processes and checks to increase the accountability and quality will ensure such activities do not happen

> Product Price & Stock Changes: Correct representation of Product information helps Customers know exactly what they are spending their money on. One key aspect of product information is maintaining accurate and correct MRP, SP & Quantity in the Physical stock of the product.

  • Seller must not misrepresent MRP of the product or show false discounts to induce sales
  • Seller must not sell above statutory MRP,  doing so invites a heavy penalty
  • Seller must not provide Paytm Mall with incorrect SKU information in the seller’s catalogue including MRP, SP and quantities in physical stock
  • While indicating the inventory of the product, seller has the responsibility of physically owning the quantity and must fulfil the orders promptly, otherwise, Paytm Mall may penalize the seller for damages caused in case of delayed shipments and merchant cancellations
  • Seller must not tamper with the original MRP sticker on the product

Best Practices

  • Always maintain physical stock of products that you show in the system
  • Always keep the correct MRP of each of the product in your stock at the time of creating a new product in the system or at the time of changing the MRP of the product
  • Keep a periodic check of your stock and ensure that the quantity is correctly entered in the system
  • Always ship products with an MRP sticker or the MRP of the product mentioned on the packaging

> Selling Fakes: Paytm Mall is committed to provide a genuine, brand new and quality products to its customers. As a seller, you are expected to do the same.

Examples of such cases where a seller must avoid:

  • Selling Fakes, Duplicates or Replicas of Branded Products
  • Selling a branded product which you are not authorized to do so
  • Selling a product which is subpar in quality than the quality it was originally manufactured by the authorized manufacturer
  • Selling a different product of lesser value, quality or specifications as ordered by the customer and displayed on the seller’s product display page
  • Selling used or refurbished products and passing them as new to the customer
  • Seller committing to a warranty on a product which he is not authorized to provide

All of the above examples are of fraudulent malpractice a seller should never indulge in.

Best Practices

  • Always ensure that the warranty you offer on the product is valid and correct
  • Always procure genuine, original and quality products
  • If you are the owner of the brand and ready to sell– keep all original documents of the brand ownership and authorization
  • If you are a brand authorized seller – then you must have a valid brand authorization letter
  • Always maintain a record of purchase of your stock
  • If you are selling products that have an IMEI, Serial no. then ensure that you have necessary details of the same

> A non-responsive merchant: As a seller, you must always keep a track of orders being booked and ship them as early as possible for a pleasant customer experience. As a non responsive merchant you are liable for penal action:

  • If you do not acknowledge orders on time ( typically taking more than 2 days)
  • If you frequently cancel the orders that you receive
  • If you do not login into the Paytm Mall Seller panel frequently to check and process your orders
  • If you do not respond to Paytm Mall reminders (email or phone) for order processing

Note: Paytm Mall reserves the right to impose, deduct from the outstanding payments of the seller or recover penalty without a prior consent of the seller if the seller is found to be involved in any of the above-mentioned Malpractices or Fraudulent activities.

Important:

  • A merchant must not misrepresent his / her identity to Paytm Mall or create multiple accounts, which is immediately termed as having an intention to commit fraud
  • A merchant must not create multiple customer ID’s wherein the identities of those customer accounts do not represent the merchant – doing so is immediately considered as intention of committing fraud