Check out the reasons why Paytm would cancel your orders

As stated in my second post in the series – Is Paytm a Scam? – Part 2, Paytm tries to amass customer’s money in it’s coffers – they call it Paytm Wallet, through various means. This is to circumvent the RBI rule that they have to keep all the money that is due to it’s merchants into an escrow account which earns no interest. So of course money refunded after order cancellation is not due to merchant and they conveniently earn interest over it.

Now when it comes to order cancellation, what is your estimate that any eCommerce player would have cancellations of the total order? And who would cancel them – the customers. Right?

Well, in case of Paytm, it is the Paytm that cancels the orders on one pretext or the other. And the percentage of the order cancelled are whopping 20-30% of the total orders placed with them.*

Based on my own experiences with Paytm, for which I have ample electronic records, have exhibited that Paytm just cancels your order unilaterally and gives ridiculous reasons for the cancellation like:

  1. Cancellation due to Delay in order fulfillment (for whatsoever reason)
    • They don’t even consult the customer if s/he is ready to bear the delay.
    • Even if you let them know in advance that you are fine with the delay, they’d go ahead and cancel the order.
  2. Cancellation by Seller (no reason attributed)
    • And no explanation is offered except that they are deeply sorry and your money has been refunded to the wallet. And this answer is repeated till the time you get fed up and stop responding. This IS their strategy!
  3. Cancellation by Seller citing stock unavailability
    • Quite often than not, this is fake excuse. They don’t update your order status for 7-8 days after placing the order and then suddenly cancel it.
    • First and foremost, why do they accept orders if the product is not in stock?
    • They do have a system in place, ain’t it? Would not their system also keep updated stock information? Then if the product is not in stock, how the system allows a person to place order?
    • Generally when Paytm runs campaigns with deep discount/cashback offers like the recent 100% cashback ones, they are very quick to update the stock information within seconds. Now if the system is in work there, is the system selective?
  4. Cancellation by Seller with fraudulent claims of stock unavailability whereby the same seller ships the same item on the same date of cancellation to different address
  5. Cancellation by logistics partner (courier company)
    • And no explanation is offered except that they are deeply sorry and your money has been refunded to the wallet. Same as point 1 above.
  6. Cancellation by logistics partner citing damaged package (no verification proof)
    • Yes, this was one of the reasons given to me.
    • Now would any logistics company accept that it has damaged the product in transit? Who turned so honest? This is beyond my understanding, but maybe my understanding is very conservative?
  7. Cancellation if the shipment gets seized by customs/tax officials due to non-payment of duties/taxes
  8. Cancellation if the shipment arrives with visible damage and the customer refuses to accept without verifying the contents (they won’t allow you to inspect unless you accept)
    • If the package is damaged, wouldn’t they allow customers to inspect the content in presence of the delivery person itself?
    • If they don’t allow the above, shouldn’t they send another piece to the customer?
    • They’d have none. Read Is Paytm a Scam? – Part 3
  9. Cancellation if counterfeit/fake product is delivered
    • Repeatedly they would send you counterfeit product and when you complain, they would just get the product picked and cancel the order.
    • Shouldn’t they ensure that only genuine and authentic items are sent. Especially when you’ve already complained?
    • If by mistake it has happened, shouldn’t they send a genuine product rather than cancelling the order?
    • They won’t do that. Read Is Paytm a Scam? – Part 7
  10. Cancellation to cover their as**s because you’d have identified their fraud with relation to a product

    • It may be because they are selling counterfeit products, like highlighted above in Point 9 (Is Paytm a Scam? – Part 7), Or
    • It may be because they had prices much much inflated than the MRP and you caught them off-guard. Read Is Paytm a Scam? – Part 5 whereby I caught them red-handed and then the very first thing that they offered was a return and refund!


Ever wondered why Paytm has so simple return/refund policy, but no return/replacement policy in place? 🙂

Have you also been a victim of Paytm? Have you also faced random order cancellation without any justified reasons? Does your experience with Paytm falls in one of the above categories? Do let me know your experiences in detail. Let’s join hands…


*approximate data based on countless complaints on social networking sites including FaceBook, MouthShut, 
Consumercomplaints and own personal experiences with Paytm.