Axis Bank Credit Card Cancellation Notice: Another Round Of Card Cancellation & Some Unknown Updates

[TechnoFino]

Hello TFCians,
I'm sure you are aware of the recent credit card cancellation notices that have been sent to many users. Screenshots of these notices are being shared across various groups, Twitter, and our community as well. Numerous individuals have received these notices, requesting clarification on transactions made with merchants intended for business purposes. Personally, I find it implausible to present transactions from merchants like show bharatNXT as personal expenses.

Source: Thread started by ChurningSidd
​

However, what you may not be aware of is that Axis Bank is actively tracking a list of individuals. Those on Twitter playing the "community game" or selling loopholes are unaware that they are being monitored. Someone, or possibly a few individuals, is sending emails to Axis Bank officials. I won't answer how I know all of this for obvious reasons.
You may be wondering how Axis Bank found out about the reserve and Axis Magnus travel edge bugs. Actually, those loopholes were reported to Axis Bank officers by some individuals; they didn't discover them on their own.

Axis Bank has already reviewed the credit card transactions of some heavy spenders and gained insight into how their customers are rotating money. You can expect to see more cancellation notices sent to numerous customers in the near future.
One individual, for instance, was using their credit card to purchase lakhs worth of fuel every month, leading to the cancellation of their credit card as well.

It is strongly advised not to use your credit card for business purposes or to rotate money. If you have engaged in such practices in the past, it is recommended to transfer your points as soon as possible.

 

[bigbrain]

you give too little credit to their systems

it is not very hard to figure out who is misusing the card. there aren't too many ways, and for a retail user (even crafty ones) pattern will emerge very quickly, and they are attacking all of those:

(1) you can be a smart guy and open a razorpay account (or from another provider) in your Mom's name; start transferring money into that, pay 2% handling fee (Mom will pay) while getting way more than 2% in rewards - this can only be done one just a few cards that offer over 2% returns on all spends. But if you do that, on every transaction the bank will see the same account. Some can go a bit more crafty and Mom can open accounts on 3-4 different platforms; this is harder, but not impossible - banks do get to know more details that payment gateway; a computer analysis will trigger alarm in most cases
(2) bharatnxt is 100% suspect, especially if you are paying rent. You'll be paying in the first few days of the month (same dates every month) and even if you split the transaction (which I'm sure most aren't doing), they will sum up to the same amount. Also your landlord is very likely not going to work with you, so all are going to the same account - in case bharatnxt is sharing the end account details there you have it. B2B is just a ploy to stop them.
(3) I'm quite certain the bharatnxt problem is not just rent - quite a few people are paying themselves through card. the platform charge is under 2% (including GST) and reward rate on some cards is lower. But even without rewards - most small business people can't get bank credit for 2% per 50 days, which is the deal here. And a bank that has a reasonable suspicion that this is going on must act under the law - they would be giving a far more risky loan which RBI requires them to classify as such


my guess is, the banks were tolerating this; they always new what is going on, but the additional expense was probably excellent free marketing. Imagine Axis trying to push its cards on TV and other media vs many dozens of youtubers doing so on their own.
I think now either they have met their advertising goals or the expense is too high. Likely a combination of both. So they are trying to bring back some balance.

I used Cred to pay School fees and a course fees for my wife. These institutions were not listed in Cred so had to enter the account number and then transfer. I got the reward points then. I hope these transaction is not questioned. I have not stored the reciepts properly and have to search. I can get a duplicate copy but still not like being questioned.
Especially wife's course. I dont know how that establishment is registered as. Educational or something else..

Fingers crossed that I dont get notified. I dont think I will use axis card for these trancations again.

 

[ALOAK]

business transactions now comes under PMLA/Black money and ED

If you are rotating for personal use banks don't mind but rotating for business is fraud as per AML. You can't use personal credit card for business even Income tax will question you? For business use business credit card which bank are willing to give.

 

[ALOAK]

I used Cred to pay School fees and a course fees for my wife. These institutions were not listed in Cred so had to enter the account number and then transfer. I got the reward points then. I hope these transaction is not questioned. I have not stored the reciepts properly and have to search. I can get a duplicate copy but still not like being questioned.
Especially wife's course. I dont know how that establishment is registered as. Educational or something else..

Fingers crossed that I dont get notified. I dont think I will use axis card for these trancations again.

You can always prove that bank account belonged to school which u paid for fees.

 

[bigbrain]

You can always prove that bank account belonged to school which u paid for fees.

I hope so. I dont know how much Axis is willing to listen to people.

 

[ALOAK]

I hope so. I dont know how much Axis is willing to listen to people.

They will listen send a copy of it bank account will match with school account. U can ask the school to provide bank account name and number and what u transfered is same. Show it they will accept it.

 

[vaibhav111]

you give too little credit to their systems

it is not very hard to figure out who is misusing the card. there aren't too many ways, and for a retail user (even crafty ones) pattern will emerge very quickly, and they are attacking all of those:

(1) you can be a smart guy and open a razorpay account (or from another provider) in your Mom's name; start transferring money into that, pay 2% handling fee (Mom will pay) while getting way more than 2% in rewards - this can only be done one just a few cards that offer over 2% returns on all spends. But if you do that, on every transaction the bank will see the same account. Some can go a bit more crafty and Mom can open accounts on 3-4 different platforms; this is harder, but not impossible - banks do get to know more details that payment gateway; a computer analysis will trigger alarm in most cases
(2) bharatnxt is 100% suspect, especially if you are paying rent. You'll be paying in the first few days of the month (same dates every month) and even if you split the transaction (which I'm sure most aren't doing), they will sum up to the same amount. Also your landlord is very likely not going to work with you, so all are going to the same account - in case bharatnxt is sharing the end account details there you have it. B2B is just a ploy to stop them.
(3) I'm quite certain the bharatnxt problem is not just rent - quite a few people are paying themselves through card. the platform charge is under 2% (including GST) and reward rate on some cards is lower. But even without rewards - most small business people can't get bank credit for 2% per 50 days, which is the deal here. And a bank that has a reasonable suspicion that this is going on must act under the law - they would be giving a far more risky loan which RBI requires them to classify as such


my guess is, the banks were tolerating this; they always new what is going on, but the additional expense was probably excellent free marketing. Imagine Axis trying to push its cards on TV and other media vs many dozens of youtubers doing so on their own.
I think now either they have met their advertising goals or the expense is too high. Likely a combination of both. So they are trying to bring back some balance.

The only reason I'm replying is that I recently came to know about payment gateway ask legitimate proof of business nowdays. You mentioned Razorpay and 3-4 other gateways. The thing is, from what I've heard, gateways nowadays require more proof compared to the last 3 years. I have 3-5 gateway accounts under my name because I run a legitimate online business. I even created another gateway account with the same provider because I forgot the password and email I used before. However, in the past 4 years or so, payment gateway companies didn't used to ask for GST and other information. But in 2020, they started asking for mine. I already have a GST and a current account, although you can accept payments in a savings account too – just saying, I think GST is a must nowadays. Correct me if I'm wrong, but all of my accounts with PayU Money, Razorpay, Paytm Business, and my own website are quite old, so I have no clue about the current requirements. They do ask questions about why I need these payment gateways.

Reading this gave me an idea that I could have done around 5-7 lakhs in rotating money in a year (playing it safe here) without any issue, because I know people with similar facilities who wouldn't mind. So, imagine this game could be so much bigger. Now, I can understand even a genuine user would follow this too. However, this has a flaw, as the person receiving shouldn't have any income either. Using Magnus will give the maximum benefit, though. P.S. I don't follow any credit card hacks on YouTube; this is purely fictional stuff that I came up with in my mind, and it's only to demonstrate the effect of Magnus on credit card users. and i don't hold magnus card either.

 

[vina]

 

[MilesMax]

Is this new official one or a new leaked one?

 

[vaibhav111]

it official
https://www.technofino.in/community...updates-from-1st-sept-2023.15458/#post-284538

Is this new official one or a new leaked one?

 

[Aritra4u]

Hello TFCians,
I'm sure you are aware of the recent credit card cancellation notices that have been sent to many users. Screenshots of these notices are being shared across various groups, Twitter, and our community as well. Numerous individuals have received these notices, requesting clarification on transactions made with merchants intended for business purposes. Personally, I find it implausible to present transactions from merchants like show bharatNXT as personal expenses.

Source: Thread started by ChurningSidd
​

However, what you may not be aware of is that Axis Bank is actively tracking a list of individuals. Those on Twitter playing the "community game" or selling loopholes are unaware that they are being monitored. Someone, or possibly a few individuals, is sending emails to Axis Bank officials. I won't answer how I know all of this for obvious reasons.
You may be wondering how Axis Bank found out about the reserve and Axis Magnus travel edge bugs. Actually, those loopholes were reported to Axis Bank officers by some individuals; they didn't discover them on their own.

Axis Bank has already reviewed the credit card transactions of some heavy spenders and gained insight into how their customers are rotating money. You can expect to see more cancellation notices sent to numerous customers in the near future.
One individual, for instance, was using their credit card to purchase lakhs worth of fuel every month, leading to the cancellation of their credit card as well.

It is strongly advised not to use your credit card for business purposes or to rotate money. If you have engaged in such practices in the past, it is recommended to transfer your points as soon as possible.

Such stupid people are present everywhere in the system!

 

[sxchzy]

ye

Axis do give points for paytm wallet loads. Are they giving now?

s

 

[vina]

ye

s

really?

 

[sxchzy]

really?

see the above ss

 

[sachinlone]

Can anyone guide to revoke this temporary block due to use for business reasons?.

 

[SamPtnk]

Kon hai wo astin ka saap jo banks ki chaat raha hai

 

[mmcc]

Hi, can any1 post sensible revert to Axis Bank for use of BharatNXT. I have paid approx 9 lakh in total on BharatNxt spread over last 4 months. I am making payments to my father & my father has a GST no. as well but business is hardly 20 lakhs per annum on the GST. Can I show it as a purchase from my father for some product/house? Need a genuine response. Thanks in advance.

 

[vina]

No, I was not arguing with you. Why do I have to argue, it's your card and your wish.
Sorry if my message sounded that way.

I was just checking if there is any other reason you stopped using BharatNxt other than the ban issue because you were using it for genuine rent payments and not for rotating money. You could have easily proved its rent payment. That is all.

Oh, I didn't realise the leaked communication had BharatNxt MCCs removed. Thanks for the info.

I don't think they'll ban the card if you prove that it is rent payment. However they will take the points back

 

[vina]

Axis do give points for paytm wallet loads. Are they giving now?

that route has been closed.

 

[mmcc]

Axis Bank goes after “non-personal spends” on Credit Cards; blocks rewards accounts - Live from a Lounge

Axis Bank has gone after manufactured spending, and other "non-personal spend" in a big way last night, blocking access for various customers to their accounts and requiring them to present proof that their spend was not against the T&C of the credit card issued to them.

livefromalounge.com

Came across this article on the same topic

 

[vina]

Can anyone guide to revoke this temporary block due to use for business reasons?.

just ask them to specifically tell which transactions are suspect; then provide the explanation.

My guess is they will not have the time and manpower to check every explanation, so let alone genuine ones, unless your explanation isn't obviously bogus their guys will usually let it go