Payment Domain Interview Questions : Difference between Reversals , Refunds, and OCT Refunds

Welcome to our new series on Payment Domain Interview Questions!
In this video, we dive deep into the concepts of Reversals, Refunds, and OCT Refunds. Understanding these key elements is crucial for anyone working in the payment industry or preparing for a job interview in this field.
🔍 What You Will Learn:
Definitions and differences between Reversals, Refunds, and OCT Refunds
Practical examples of each
Key scenarios where each is applicable
Common interview questions related to these topics
Business Aspect of it
Why merchant initiate these type of transactions
end to end transaction flow
Don't forget to like, share, and subscribe for more content on payment domain interview questions!
📢 Follow us on LinkedIn for more updates and professional content:
www.linkedin.c...
#PaymentDomain #Reversals #Refunds #OCTRefunds #InterviewQuestions #FinTech
Have a compelling topic in mind that you want us to explore? 🌟 We're here to turn your ideas into engaging content! Share your thoughts with us: docs.google.co...
For Payment Insights with Ramesh, kindly drop your message here: docs.google.co...
Or join the group
chat.whatsapp....
Connect with Ramesh:
/ ramesh-kumar-chugh-292...

[@venkatakkala]

Hi Ramesh, if I am not mistaken, Oct fast funds is a credit to customer account and refund is debit to customer account which should reflect customer account with in 30min of authorization for both cases. Can you please clarify if I am wrong

[@TheDomainPodium]

I think u r talking about AFT - which is a debit , OCT Fast Fund is credit

[@bhalT]

Very good information

[@deemis2601]

OCT is original credit transaction also known credit leg transaction where fund gets deposited into recipient account such credit card bill payment or Instant refund on IRCTC. Oct performed via MC SEND or Visa Direct platform

[@TheDomainPodium]

Yes in this video m talking about only Refund BAI however under OCT Fast Fund there are multiple BAIs - example Credit card payments, P2P etc , you can check card network specifications for the list

[@shaiksalim264]

When a merchant initiates a standalone refund without the original authorization code, the fees related to that transaction will be refunded to customer ?
example:
- Transaction amount: 10 USD
- Markup fee: 1 AED (approximately 0.27 USD)
If the merchant initiates a 10 USD standalone refund without the original authorization code, what will happen in such scenario ?

[@TheDomainPodium]

Its a big topic to discuss, as it depends on issuers to issuers and same topic was being discussed in our group some other day, fees calculation is done separately and posted accordingly to the account holder

[@deemis2601]

Refund can be referenced refund or linked refund on order id OR standalone refund

[@TheDomainPodium]

Sure thanks, good to know if there is any business use case where merchants will link refunds to an original trxn and same will be communicated to issuer via ISO Auth Request

[@deemis2601]

@@TheDomainPodium Yes, gateway store the order information up to 13 month and can process refund on original order id when pay and refund is happening on same gateway. Else merchant wants to process refund via other gateway they can provide authorization code and FPAN in api request and gateway submits 0200/0100

[@TheDomainPodium]

@@deemis2601 Thats PG or ecomm acquirer maintain but in ISO auth request submitted to issuer refund has no reference to the original trxn, happy to be corrected if anything wrong