Quantifying The Risk Of Online Payment Failure

Interesting to see the quantification.

But this is relevant only in case of a 'patchy internet connection' right ? Why would 2FA fail ? I have faced issues of OTP delayed or not received, in which case you simply retry. But there hasn't been case of failures.

No, it's relevant for many more reasons. You can find them by following the hyperlink given in my post. 

@Ketharaman, yes read it and appreciate your point. I googled up to find that the success rate of online payment is as low a 18%.

Thank You,

@ShajuNair: 18% success rate? Gasp! That's scary!!

@Ketharaman  with HDFC i am assured that i will never make a double payment even in case of connectivity failure. Just sharing my experience.

With HDFC you get an SMS the moment your transaction is authorised. So if you have a patchy internet connection but if you get an SMS that means the transaction has gone through. The webpage on your machine will just time out but you will be assured that the payment is done.

There is however a possibility that there is a connection issue between merchant gateway and HDFC so the merchant doesn't get the authorosation response and he displays payment failure meesage to you . In this case depending upon the amount and your risk appetite you can do the payment again . HDFC will again authorise this transaction and you will get SMS confirmation , but when it comes to settlement only the second transaction is settled while the first transaction gets cancelled.

I have experienced this quite a few times and i am comfortable relying on this system when it comes to my regular merchants like amazon, tata docomo , makemytrip etc. 

@ChetanGhadge:

You hit the nail on the head when you say it all depends "upon the amount and your risk appetite". The amount is INR 300K and this post is about putting a monetary value to risk appetite.

I certainly don't have the risk appetite to attempt an INR 300K payment again in the hope that my bank - even assuming it's HDFC Bank - will cancel the first transaction when the second one comes for settlement. More so because there have been times when I've got the merchant acknowledgment's of successful payment but I haven't got the transaction confirmation SMS from the issuer bank - especially if it's HDFC Bank.