himanshverma
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Are we not getting RP on Zavo
Or transactions are failing on Zavo
Or transactions are failing on Zavo
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IDFC First Bank Launched its Debit Card Reward System
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Pravin1156
TF Premier
I think bank may blocking some merchant with huge volume of transactions. I thought may be now the limit of transactions are soo high so bank blocked the Zavo merchant.
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Pravin1156
TF Premier
Transactions are failing on Zavo
I think Zavo will also change the MCC followed by savesage and many others, don't know if they got any restrictions from RBI
Or the business model is not sustainable for them.
could be a reason too, people only used that app for CC bill payment for getting ID_FC RPs
Sobirvs
TF Legend
Do you understand what you are saying?
Savesage/zavo themselves can't do anything.
Wrong MCC Code is given by the PG/Merchant account acquirer. Both these apps got lucky. Once acquirer bank realizes their mistake or audit/revaluate savesage/zavo's business model, MCC will be changed right away.
Savesage/zavo themselves don't have any power whatsoever to decide what mcc code they should get. Some guy at the bank or PG probably mixed up their business category code and since then they have this mcc.
Also RBI doesn't decide mcc, however they do have influence over the banks to get it corrected but RBI hardly would care for few crores of trxns, they care for huge trxns.
We’re all here to learn and discuss different perspectives, so let’s keep it constructive and focused on the topic, not on questioning each other’s understanding
I think some apps—especially fintechs or payment startups—may present their business in a particular way when onboarding with an acquiring bank or payment gateway, aiming to obtain a more favorable Merchant Category Code (MCC). This is often done to reduce fees, enable certain types of payments, or fit within preferred transaction categories. Essentially, they might tweak or reframe their business model (at least on paper) to influence how the acquirer interprets and classifies them.
However, at the end of the day, the final MCC is still assigned based on the documentation and due diligence carried out by the acquirer. If the bank or payment gateway accepts the description provided and assigns the desired MCC, it sticks—unless a later review or audit leads to a change.
So, while apps can definitely try to steer the outcome by how they present their business, they can’t guarantee a specific MCC. It’s always a mix of how an app positions itself and how the acquiring institution views and approves that positioning.
MCC details
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Sobirvs
TF Legend
Again, no. most of what you are saying is guess work from a consumer perception. You would know the truth if you have worked with PG/Bank(merchant section)/acquirer banks. There is no question of "perception". Fact is a fact.
For Visa, it's the Bank who decides it, it's not even PG who decides (unless the merchant account provider owns the PG for example paymentech - owned of chase or authorize.net owned by Visa themselves).
For mastercard, it's mc themselves who decides mcc not bank/pg/acquirer.
Speaking of business classifying themselves wrongly (fraud), whole liability falls on the business then. The amount a merchant is thinking of earning(profit) is simply not worth it when compared to the lawsuit bank/pg can file on them for doing fraud with them. Merchants just don't have any incentive of getting wrongly classified. Sure savesage found a way to make it profitable but think about it, what did sbiunipay profited for getting wrong classified? or canarasetu? or airtel? or phonepe? or amazon (remember the trick of zomato/amazon dc load)? Amazon earns from these tricks of wrong mcc? Amazon doesn't even care btw what people earn from their credit card rewards as they are not the one's who fund those, it's the bank who do, hence classification doesn't matter.
MCC are most for banks to classify merchant and merchant category so that they can encourage spending on specific catagory where they themselves earn good or even if they aren't earning, atleast they would want people to spend on a specific mcc / category where they can control the ecosystem or get people addicted to (for ex shopping) as banks themselves know to boost economy, it's not the money who does it, it's the goods and services.
Can banks give rewards/cashback for cc bills officially? ofc they can, but those are the bills bank know that customer will use/pay anyways, so it doesn't generate much card usage. Hence why bank gives rewards for those where shopping/merchandise is involved because those trxns weren't really needed most of the time. Going to amazon/flipkart just to buy crockery because we need them, but oh wait, it is showing a facy phone or a fridge, might aswell buy those aswell. This is exactly what banks want. Unnecessary spending. If banks don't encourage those trxns (by giving cashback), people would actually think why to even do the trxn then. I am not saying for 10 or 20rs reward, customer does a 5k trxn, but it does give some encouragement to the customer.
Now does wrong representation never happens? Well, atleast not just for "reward points/cashback". This is serious fraud that bank can sue for , and it's real money which bank themselves are funding so they won't let go. So when does wrong representation happens? Well it happens in high risk trxns/business. For example e-cig sales, or drugs or crypto business, Something which banks have prohibited, hence merchant would want to get classified for some category so they can do business otherwise thye can't process card trxns. No business cares for mcc code.
I have always though abt maximize though, as they actually advertise the sbi cashback and other trxn. My guess is they bribed someone at razorpay? Ofc It can be that razorpay made a mistake while classifying them. Probably when they made their website, they had products for "advertisement" business, but later when they got the merchant acc, they changed their items. Or them may be know someone at razorpay? Maximize people are very very smart. I have to give it to them as they aren't doing this just with razorpay but also with 2 more gateway providers.
I have worked in this industry, hence I have somewhat knowledge about this.
I've recently created a pet merchant through cashfree myself, who controlled the MCC here !!
Which issue? .
Sobirvs
TF Legend
cashfree's merchant bank(underwriter) provider. Cashfree is just front end. Basically tech. They aren't financial institution themselves. Now whichever modes are activated for your merchant, like INB, Wallets, are all decided by the respect companies. Like apay wallet is decided by amazon themselves. Similarly for INB too, it is decided by respective bank.
For visa/mc, for visa , visa let's bank or pg make the assumption, however for mc, pg/bank has to send all details to mc to get the merchant categorized (ofc all this can change in future).
I am guessing you made the "pet" category merchant, because of roar bank cashback? One trxn or 10 or 100 won't make a difference to pg. You mis represented yourself. However all trxns are router thru api's, which their system can detect if it's going thru a pet merchandize/products website or not. Ofc they give self hosted link too, but 99% of the trxns are usually not thru that.
I got almost all categories activated, don't know much about this system in details. Still learning from experts here
But yeah I've myself selected the merchant category while creating a PG using FrontEnd and it making API calls, I earned rewards creating and using the PG MCC, So thinking why can't these app can do that.
Some of the last few posts are more complicated than rocket science for a kindergarten dropout like me 🤔😬🤔😬
So you learnt A A A and couldn't progress till A B C🤔
3 patti .
His username is triple A
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