Why are refunds not instant?

Refunds are typically not instant because the process involves multiple parties—the merchant, payment processor, card network, and card issuer—which must check, log, and reconcile the transaction. This acts as a security measure to prevent fraud and confirm the original charge. Payments made via card or net banking often rely on older batch settlement systems. However, solutions like Paytm's Instant Refunds are emerging to reduce the waiting time.