In this module we will discuss:

1. What is Fraud and what are the different types of fraud?

2. What are the penalties levied in case of fraud?

3. How to avoid penalties?

Frauds & Penalties

What is Fraud and what are the different types of fraud?

Fraud & Penalties

Fraud is a deliberate action of deceiving Paytm to secure unfair gain which maycause financial, brand image, or other damages to Paytm or its partners.

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1. Empty Box 2. Selling Fake

3. No response 4. Self ordering

5. MRP mismatch6. Seller cancellation

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1 Merchant fraudA

Note- This is an illustrative list and doesn’t include all cases.

What are the penalties levied in case of fraud?

Fraud & PenaltiesD

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Empty Box- When the parcel contains other stuff likebricks, stones, garbage etc instead of actual product

Fake Product- Selling fake branded products,purchased from local trolley without theauthorization

• Penalty will be =GMV+Cashback+15000/(Litigation expenses)

• Permanent Delisting from Paytm platform

• Penalty will be = GMV+Cashback+15000/(Litigation expenses)

• If total such cases exceed 0.1% of total lifetime orders it will lead to permanent delisting

1 PenaltiesB

Note- This is an illustrative list and doesn’t include all cases.

What are the penalties levied in case of fraud?

Fraud & Penalties

No response- When you don’t process orders and post SLA orders get cancelled

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Self ordering- For taking advantage of the offers and promotions which is meant for other genuine customers

• Penalty will be = 3*GMV+cashback+15000/(Litigation expenses)

1 PenaltiesB

• Penalty will be = PG Fee(2.7%)+Service tax(15%)+100% Marketplace fee

Note- This is an illustrative list and doesn’t include all cases.

What are the penalties levied in case of fraud?

Fraud & PenaltiesD

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MRP mismatch- Altering the original MRP Merchant cancellation – If you cancel the order

• Penalty will be =GMV+Cashback+15000/(Litigation expenses) and permanent removal of respective product id from Paytm seller panel

• if there are multiple such occurrence – Permanent Delisting from Paytm platform

• Pre SLA merchant cancellation =PG Fee(2.7%)+Service tax(15%)+50% Marketplace fee

• Post SLA merchant cancellation=PG Fee(2.7%)+Service tax(15%)+100% Marketplace fee

1 PenaltiesB

Note- This is an illustrative list and doesn’t include all cases.

How to avoid penalties?

1 Fraud & Penalties Avoid penaltiesC

• Maintain physical stock of products• Add inventory only if you have its

physical stock

• Ship products with an MRP sticker• Always match MRP of product with the

MRP listed in your catalogue

• Ensure that the warranty you offer on the product is validAvoid Penalties

• Procure genuine products only• You must have authorizations from

brands for all products

• Maintain record of purchase • Do not indulge in fraudulent methods to obtain induced orders.

Thank you!For any query please raise a ticket on support