HC rules on refunding customer money stuck in e-commerce gateways

The High Court (HC) on Monday issued a rule upon the authorities concerned to explain why the money of customers stuck in e-commerce payment gateways is not being refunded.

The HC Bench of Justice Md Mozibur Rahman Miah and Justice Md Kamrul Hossain Mollah issued the ruling after hearing a writ, seeking its directions to refund the buyers' money.

The court also asked the concerned government authorities to explain within four weeks as to why its failure in issuing directives to e-commerce payment gateways to refund customer's their money should not be declared illegal.

The governor of Bangladesh Bank, the general manager of the Payment System Department of the bank, the commerce secretary, and the director general of the World Trade Organisation (WTO) cell of the commerce ministry, and the chief executive officers of payment gateways -- bKash and Nagad, SSL Wireless, Foster Pay, and Surjo Pay -- were directed to respond to the rule.

Earlier on 21 October, Barrister Sabrina Zarin, on behalf of Conscious Consumers Society (CCS), a consumer rights group, filed the writ with the relevant HC division. In the writ, the petitioner sought HC directives for refunding the money of buyers stuck in payment gateways.

The writ also  sought the explanation of authorities concerned, as to why the escrow system introduced by the Bangladesh Bank may not be amended to establish a permanent system of automatically refunding customers, said Barrister Sabrina Zarin.

Conscious Consumers Society served a legal notice on 17 October to the authorities concerned on the same issue. Later, a writ was filed following their inaction on the legal notice, she added.

"We have received specific information Conscious Consumers Society (CCS) on almost 350 victims. There are severe complications involving the refund of money stuck in escrow systems," Sabrina also said.

Meanwhile, CCS Executive Director Palash Mahmud said, the money of thousands of customers is stuck in escrow systems.

"The gateways are saying they need permission from the government or the e-commerce company to release the money. But why will I need the approval of e-commerce companies to get my money back?" he questioned.

The central bank introduced the escrow service in July for rogue e-commerce companies like Evaly and Dhamaka in the face of widespread allegations against them, of fraud and irregularities.

In an escrow payment service, money paid by customers for goods ordered from e-commerce companies gets deposited in third-party payment gateways.

e- commerce companies are supposed to receive their money after submitting supporting documents proving the goods have been delivered.

However, many customers say they neither got their products nor the money they paid for goods undelivered.