In this module we will discuss: What is Fraud and what are the different types of fraud? What are the penalties levied in case of fraud? How to avoid penalties?

1. Frauds & Penalties
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?

2. What is Fraud and what are the different types of fraud?
Fraud & Penalties A Merchant fraud1
Fraud is a deliberate action of deceiving Paytm to secure unfair gain which may cause
financial, brand image, or other damages to Paytm or its partners.
TypesofFrauds
1. Empty Box 2. Selling Fake
3. No response 4. Self ordering
5. MRP mismatch 6. Seller cancellation
Fraud
Note- This is an illustrative list and doesn’t include all cases.

3. What are the penalties levied in case of fraud?
Fraud & Penalties B Penalties1
Note- This is an illustrative list and doesn’t include all cases.
DescriptionPenaltyCase
Empty Box- When the parcel contains other stuff like
bricks, stones, garbage etc instead of actual product
Fake Product- Selling fake branded products,
purchased from local trolley without the
authorization
• 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

4. What are the penalties levied in case of fraud?
Fraud & Penalties B Penalties1
Note- This is an illustrative list and doesn’t include all cases.
No response- When you don’t process orders
and order crosses the SLA
• If the SLA of order is breached then the penalty will be
= PG Fee(2.7%)+Service tax(15%)+100% Marketplace fee
• If the order is shipped between SLA breach date and Grace
period date then PG Fee(2.7+100% Marketplace fee of
deducted penalty will be returned to the Seller
Merchant cancellation – If you cancel the order
• 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
DescriptionPenaltyCase

5. What is a service level agreement (SLA)?
Fraud & Penalties B Penalties1
Note- If SLA is breached , the order will be cancelled and you will be charged a cancellation fee
Avoid SLA breaches as they affect your seller ratings and performance on Paytm.
Order placed on 21st March 2017
Order placed at 08:00 pm
SLA as agreed 3 days
Order to be moved to “Pick up awaited” by On or before 22nd March 2017, before 10:00 am
Order to handed over & marked ‘Shipped’ by On or before 23rd March 2017, before 08:00 pm
Every Seller need to ensure that all order are marked Shipped within SLA, so handover product before 1 day from SLA
date.
Here is an example to help you understand this better:
A service level agreement (SLA) is your promise to ship your products to your customers within a
certain number of days

6. What are the penalties levied in case of fraud?
Fraud & Penalties B Penalties1
Note- This is an illustrative list and doesn’t include all cases.
MRP mismatch- Altering the original MRP
• 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
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)
DescriptionPenaltyCase

7. How to avoid penalties?
Fraud & Penalties C Avoid penalties1
• 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.

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