{"id":3875,"date":"2017-03-03T11:00:27","date_gmt":"2017-03-03T05:30:27","guid":{"rendered":"http:\/\/gtm360.com\/blog\/?p=3875"},"modified":"2021-12-30T11:18:51","modified_gmt":"2021-12-30T05:48:51","slug":"what-will-you-pay-to-escape-a-failed-payment","status":"publish","type":"post","link":"https:\/\/gtm360.com\/blog\/2017\/03\/03\/what-will-you-pay-to-escape-a-failed-payment\/","title":{"rendered":"What Will You Pay To Escape A Failed Payment?"},"content":{"rendered":"<p>We all know the cost of a failed payment in terms of loss of service, late payment fees, reinstatement charges, and so on.<\/p>\n<p>In this post, I&#8217;m going to estimate the cost of <em>escaping<\/em> a failed payment.<\/p>\n<p><a href=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/ropf-fi.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3883 size-full\" src=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/ropf-fi.jpg\" alt=\"\" width=\"630\" height=\"280\" srcset=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/ropf-fi.jpg 630w, https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/ropf-fi-200x89.jpg 200w\" sizes=\"auto, (max-width: 630px) 100vw, 630px\" \/><\/a><\/p>\n<p>I had to pay college fees of INR 300,000 (~US$ 4615). The college supported an array of digital and paper-based payment options viz.<\/p>\n<ul>\n<li>Digital: Log in to college website, use college\u2019s ePayment Gateway and pay by Credit Card.<\/li>\n<li>Paper: Demand Draft.<\/li>\n<\/ul>\n<p>I evaluated the pros and cons of both options.<\/p>\n<p><strong>DIGITAL PAYMENT<\/strong><\/p>\n<p><a href=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/credit-card-01.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3885 size-medium\" src=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/credit-card-01-200x92.jpg\" alt=\"\" width=\"200\" height=\"92\" srcset=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/credit-card-01-200x92.jpg 200w, https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/credit-card-01.jpg 762w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a>Pros:<\/p>\n<ol>\n<li>Credit card reward points: 3000 (@ 1 point per INR 100 spend). Generally, reward points can be redeemed for gifts worth INR 0.25 per reward point<\/li>\n<li>Deferred payment of 45 days, so no need to break FD immediately<\/li>\n<li>Automatic linkage of remittance info to student\u2019s account<\/li>\n<li>Convenience of making the payment from home<\/li>\n<\/ol>\n<p>Cons:<\/p>\n<ol>\n<li>Risk of failed payment due to two factor authentication and patchy Internet connection, as highlighted <a href=\"http:\/\/lnr.li\/duhYw\" target=\"_blank\" rel=\"noopener\"><strong>here<\/strong><\/a>.<\/li>\n<\/ol>\n<p><strong>PAPER-BASED PAYMENT<\/strong><\/p>\n<p><a href=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3884 size-medium\" src=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft-200x89.jpg\" alt=\"\" width=\"200\" height=\"89\" srcset=\"https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft-200x89.jpg 200w, https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft-768x340.jpg 768w, https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft-630x280.jpg 630w, https:\/\/gtm360.com\/blog\/wp-content\/uploads\/2017\/02\/demand-draft.jpg 1000w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a>Pros:<\/p>\n<ol>\n<li>Zero risk of payment failure<\/li>\n<\/ol>\n<p>Cons:<\/p>\n<ol>\n<li>Visit bank to buy the Demand Draft (3 hours)<\/li>\n<li>Demand Draft commission (INR 1000)<\/li>\n<li>Loss of interest because I need to break FD immediately<\/li>\n<li>Visit college to submit the Demand Draft (1\/2 hour)<\/li>\n<li>Manual updation of payment on college website (1\/2 hour)<\/li>\n<\/ol>\n<hr style=\"width: 70%;\" \/>\n<p>Now, let me compute the &#8220;dollar value&#8221; of the difference between these two options:<\/p>\n<table class=\"MsoTableGrid\" style=\"border-collapse: collapse;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"border: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><strong>BASIS: INR 300,000 Payment<\/strong><\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: 1.0pt solid black; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\"><\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: 1.0pt solid black; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" colspan=\"2\" valign=\"top\" width=\"150\">\n<p class=\"MsoNormal\" style=\"text-align: center; line-height: normal; margin-bottom: .0001pt;\" align=\"center\"><strong>INR<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-left: 1.0pt solid black; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\"><\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\"><\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><b><br \/>\nDIGITAL<\/b><\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><b><br \/>\nPAPER<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-left: 1.0pt solid black; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">Gift value of 3000 reward points @ INR 0.25 per point<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; line-height: normal; margin-bottom: .0001pt;\" align=\"center\">:<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">+750<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\"><\/td>\n<\/tr>\n<tr>\n<td style=\"border-left: 1.0pt solid black; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">Interest on INR 3.00 Lakhs FD for 45 days @ 8.50% p.a.<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; line-height: normal; margin-bottom: .0001pt;\" align=\"center\">:<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\"><\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">-3188<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-left: 1.0pt solid black; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">Demand Draft commission<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; line-height: normal; margin-bottom: .0001pt;\" align=\"center\">:<\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\"><\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\">-1000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-left: 1.0pt solid black; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><b><br \/>\nTOTAL<\/b><\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\">\n<p class=\"MsoNormal\" style=\"text-align: center; line-height: normal; margin-bottom: .0001pt;\" align=\"center\"><b>:<\/b><\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><b><br \/>\n+750<\/b><\/p>\n<\/td>\n<td style=\"border-left: medium none; border-right: 1.0pt solid black; border-top: medium none; border-bottom: 1.0pt solid black; padding: 0in 5.4pt 0in 5.4pt;\" valign=\"top\" width=\"75\">\n<p class=\"MsoNormal\" style=\"line-height: normal; margin-bottom: .0001pt;\"><b><br \/>\n-4188<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Paper option had an incremental cost of INR 4938 (being INR 750 + INR 4188) ~ INR 5000 (US$ 80).<\/p>\n<p>I still opted for it.<\/p>\n<p>Which suggests that&#8217;s the monetary value I attached to escaping a <a href=\"http:\/\/lnr.li\/duhYw\" target=\"_blank\" rel=\"noopener\"><strong>failed payment<\/strong><\/a> and the subsequent <a href=\"http:\/\/lnr.li\/eojbx\" target=\"_blank\" rel=\"noopener\"><strong>trouble of getting my money back<\/strong><\/a>.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Day5 after <a href=\"https:\/\/twitter.com\/TheOfficialSBI?ref_src=twsrc%5Etfw\">@TheOfficialSBI<\/a> lost a high value RTGS amount of mine and they still cannot find out where it is&#8230;.Is there any responsible official in this bank who want to avoid a legal case <a href=\"https:\/\/twitter.com\/guptapk?ref_src=twsrc%5Etfw\">@guptapk<\/a><br \/>Complete apathy with no sense of customer service<\/p>\n<p>&mdash; Salil Ravindran (@salilrav) <a href=\"https:\/\/twitter.com\/salilrav\/status\/1137281498485149697?ref_src=twsrc%5Etfw\">June 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In short, the price I was willing to pay for peace of mind was INR 5000 \/ US$ 80.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We all know the cost of a failed payment in terms of loss of service, late payment fees, reinstatement charges, and so on. In this post, I&#8217;m going to estimate the cost of escaping a failed payment. I had to pay college fees of INR 300,000 (~US$ 4615). The college supported an array of digital &#8230; <a title=\"What Will You Pay To Escape A Failed Payment?\" class=\"read-more\" href=\"https:\/\/gtm360.com\/blog\/2017\/03\/03\/what-will-you-pay-to-escape-a-failed-payment\/\" aria-label=\"Read more about What Will You Pay To Escape A Failed Payment?\">Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":3883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,14,1],"tags":[],"class_list":["post-3875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bfsi","category-cx","category-mandatory-category"],"_links":{"self":[{"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/posts\/3875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/comments?post=3875"}],"version-history":[{"count":15,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/posts\/3875\/revisions"}],"predecessor-version":[{"id":8931,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/posts\/3875\/revisions\/8931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/media\/3883"}],"wp:attachment":[{"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/media?parent=3875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/categories?post=3875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm360.com\/blog\/wp-json\/wp\/v2\/tags?post=3875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}