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Billing Payment cancellation vs reversal

  • 1.  Billing Payment cancellation vs reversal

    TM Forum Member
    Posted Mar 19, 2021 09:54
    Hi,

    I would like to get suggestions on handling the Payment transactions at the Billing system as well as the sales channel.

    How the workflow should be defined for Payment Void, Cancel & Reversal. Is Void & Cancel payment the same with respect to front-end modules like Point of Sale Or CRM?

    In case of cash payment initiated from Point of Sale system for a Postpaid Invoice, if the customer decides to take back the cash and do it as a card payment. At the POS system can we void this transaction and initiate the cancellation process to Billing system? How should this be handled at Billing?


    TR
    Charan
    #General

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    SRICHARAN NANDI
    Six DEE Telecom Solutions Pvt Ltd
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  • 2.  RE: Billing Payment cancellation vs reversal

    Posted Mar 22, 2021 05:38
    Hey Charan!
    We also have faced this challenge. I can share our thoughts. Short answer: Void and Cancel payment operations are the same on the front-end.
    Long answer. In most cases, the customer sees that the credit card was charged (in SMS notification or bank's mobile app) right after the credit card transaction ​processed. In reality, the payment will go through authorisation/post/settled... Depends on the exact status you can do different actions, like Void or Cancel. But the customer know - the card was charged.
    So, he have only one action on the front-end - Refund. The flow under this button do the required action, depends on the current payment status. The successful result of the flow - money refunded (even if technically it was cancellation).
    It is a more complicated business flow (handle switch between statuses, retries, correct respond to customer..). But it is more convenient for the customer.

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    Yuri Stepanenko
    UNSPECIFIED
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  • 3.  RE: Billing Payment cancellation vs reversal

    Posted Mar 22, 2021 05:49
    And yes, my answer is more about first part of your question. Regarding "How should this be handled at Billing" - i think there is no general unswer on this. You should decide it in the context of exact business: what was done with the payment your are trying to refund (invoice covered, balace toped-up)? is pre- or post-paid? what is company policy about money refund? etc...​​

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    Yuri Stepanenko
    UNSPECIFIED
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  • 4.  RE: Billing Payment cancellation vs reversal

    TM Forum Member
    Posted Mar 22, 2021 06:40
    Edited by SRICHARAN NANDI Mar 22, 2021 06:40
    Hey Yuri,

    Thanks for your thoughts, it helped.

    I was trying to figure out which of these 2 is the correct approach, In my usecase when a customer wants to take back the cash and pay using the card.
    1. Cancel the cash payment transaction and initiate a refund process. Then take Card payment.
    2. Modify the same cash transaction in front-end, make it a card payment. In billing void the cash payment and book card payment.

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    SRICHARAN NANDI
    Six DEE Telecom Solutions Pvt Ltd
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  • 5.  RE: Billing Payment cancellation vs reversal

    Posted Mar 23, 2021 05:36
    Charan,

    I would avoid the second scenario as it can bring you to the case, then front-end and billing will have different information about payment status and parameters.
    It is hard to recommend something. The solution depends on the exact project context and business requirements.

    1. Does the business want to control the cash refund process? if yes - initiate a refund process
    2. What should be done on the billing side in case of a refund?
    3. Keep in mind - it might be the case, then cash refunded, but the credit card payment was not processed for some reason.


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    Yuri Stepanenko
    UNSPECIFIED
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