Will convert cash on delivery orders to pre-paid orders and reduce losses on CoD orders for online retailers by up to 35%
Also allows online retailers to automate Cash on Delivery refunds using Cashfree’s Cashgram product
Payments and banking technology company Cashfree has announced its partnership with Logisy, a 360° RTO (Return To Origin) optimization and fraud prevention company for e-commerce websites. The partnership will enable merchants to convert cash on delivery (CoD) orders to pre-paid orders, reducing losses, and also automate and speed up their CoD refund process significantly.
Online retailers have always faced high return rates and resulting losses on CoD orders, which still remains the most preferred mode of ordering. With this partnership, Logisy detects orders likely to be returned to origin (RTO) and converts them to pre-paid orders by sending a Cashfree enabled payment link to the buyer over WhatsApp. Additionally, when merchants had to process CoD refunds before, it involved a slow and error-prone process of collecting the customer’s bank account details, adding a payee and processing the refund. However, with this integration, Logisy’s Return Centersimply sends a payout link over WhatsApp, where the customer can enter their bank account, wallet or UPI details and receive the refund immediately. This is helpful since processing refunds happens to be the major source of support tickets and customer grievance for online retailers.
Although businesses have faced various hurdles during lockdown, along with limited technological awareness among many SME owners, Logisy has observed a jump in virtualization of retail stores and with it, the need for ways to curb RTO orders. Together, the two companies will enable the increase of prepaid orders by up to 35% for Indian e-commerce merchants. This partnership is also set to provide a frictionless way to automate refunds by harnessing Cashfree’s Cashgram, a way to instantly send out money.