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Being charged MDR for buying vehicles, did you face it?

  • Thread starter Thread starter xfactcc
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xfactcc

xfactcc

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I have read in multiple threads here that when people visited dealerships to buy their next bike, scooter or car on CC, they were told to pay MDR fees in cash or UPI without receipts.

These are presumably large dealerships that can easily efford the 2% fees but choose to pass it on to their customers anyway.

Did you face such issues during your purchase? Were you able to convince the dealer to not charge MDR through negotiation or though complaining to the vehicle company etc.

Please share your stories. Need the tips for my next potential purchase.
 
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xfactcc said:
Keep escalating until you reach RBI BO. Attach convincing proof that they overcharged you above invoice. There's a RBI guideline that merchants cannot recover MDR from customers, cite the guidelines. Say that they charged the fee in terms of some card usage fee, which you didn't understand and thought legitimate hence paid, later you found out it's not legit and thry recovered MDR from you hence complained. Let's see how that goes.
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Can you share the RBI guidelines? I searched in Google but I was only able to find MDR on debit card. I saw somewhere that regarding credit card MDR, only the agreement between the accepting bank and the merchant prevails.
 
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CD. said:
this is so incorrect. You paid this 2% voltuntarily
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I paid it thinking I can raise a charge back claim. I saw some posts that amex gave an instant credit after a similar type of complaint has been made. I thought other banks would eventually refund the fees even though not as fast as amex.
 
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Praveen05 said:
I paid it thinking I can raise a charge back claim. I saw some posts that amex gave an instant credit after a similar type of complaint has been made. I thought other banks would eventually refund the fees even though not as fast as amex.
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Charge back is different. It is for fraudulent transactions and when merchant gets money but doesn't deliver or refund.

Yes if your invoice amount and transactions amount is different you can claim there was some hidden charges. But chargeback is double edge sword. If you apply that , the amount gets hold. Later if bank finds the charges legitimate, they would charge interest from the day you applied charge back.
 
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sidp said:
Charge back is different. It is for fraudulent transactions and when merchant gets money but doesn't deliver or refund.

Yes if your invoice amount and transactions amount is different you can claim there was some hidden charges. But chargeback is double edge sword. If you apply that , the amount gets hold. Later if bank finds the charges legitimate, they would charge interest from the day you applied charge back.
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Ohh I didn't know this, anyway my transaction is not on hold, it is billed to my card now.
 
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sidp said:
Charge back is different. It is for fraudulent transactions and when merchant gets money but doesn't deliver or refund.

Yes if your invoice amount and transactions amount is different you can claim there was some hidden charges. But chargeback is double edge sword. If you apply that , the amount gets hold. Later if bank finds the charges legitimate, they would charge interest from the day you applied charge back.
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idt interest is levied is chargeback gets denied
could you share the bank tncs where the same is mentioned
 
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Praveen05 said:
Ohh I didn't know this, anyway my transaction is not on hold, it is billed to my card now.
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If you apply charge back then they'll hold.
As you have already accepted that you knew about charges beforehand, better don't do chargeback. If you do chargeback they'll hold full amount. If their initial inspection take a month or 2 and then they find it was legitimate. They would charge interest on whole amount.

Complaining cc and then rbi to refund mdr is only option for you.
 
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sxchzy said:
idt interest is levied is chargeback gets denied
could you share the bank tncs where the same is mentioned
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You can clarify that from bank directly. If it wasn't the case, any tom dick and Harry would apply for chargeback with high value transactions and wait for a month for bank to do inspection and get extended interest free period. And there is option to file for partial amount as chargeback, but many times customer care will hold full amount. You know cuz they are idiots. Then you are in even bigger mess.

Not only that if you abuse chargeback , your cc might get closed, put adverse comment in cibil and even issuer can file for fraud if they want. You should never mess with financial Institution especially if you are in the wrong. Just look at history: genocide, colonization, slavery, toppling govt, war, they have done everything. Its not about some money, they just want to set an example. If one guy does it, everyone will. Yeah but if you have genuine issue, you can use it without any worry. They might cancel chargeback, but they won't take any other step.
 
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