Axis Bank Issuing Cancellation Notices for Using Personal Credit Cards for Business Expenses

[TechnoFino]

Dear TFC members,

I would like to inform you that Axis Bank has begun sending commercial use notifications to their HNI cardholders as well. As you may already know, Axis Bank has a history of cancelling their customers' cashback cards such as Axis Ace and Axis Flipkart Card if they are used for business purposes.

Recently, Axis Bank has sent suspected commercial use notifications to their HNI cardholders such as Axis Magnus, Axis Reserve, etc. Unfortunately, I have also received a notification from Axis Bank and they are requesting spending justification within the next seven working days.

In case a customer is unable to justify their spending as personal, the bank will close all their credit cards.
During that time frame (Dec 2022 and Jan 2023), all of my spending was personal. I am currently in the process of submitting all the necessary documents to Axis Bank for spending justification.
The primary reason for this post is to advise our members that even if you are using a high-end credit card from a bank, they may still flag your transactions if they are related to business expenses.
If you intend to charge anything other than personal expenses to your personal credit card, please exercise caution.

Edit:- many people are asking for subject line of the email, Here it is- "Commercial Usage on your Axis Bank Credit Card Accounts"

Update - Axis Bank has already sent notifications to more than 200 accounts on March 4, 2023. Now they have sent such a cancellation notice to more than 500 credit card accounts yesterday. and they are also filtering more accounts. (S.N.)

 

[Wealth is my birth right!]

I know half the VIP member here are in tense situation because of this post but....
Things aside... How can I earn soo much that IT team gives a good email for my tax contribution? 😁

Everyone have to plan their spends in magnus with invoices properly I think

 

[BestBanker]

I don't understand this. Are they asking Card members not to do any spends related to their own business ?
Or is it something related to money laundering ?

 

[TechnoFino]

Update -
Axis Bank has already sent notifications to more than 200 accounts on March 4, 2023. Now they have sent such a cancellation notice to more than 500 credit card accounts yesterday. and they are also filtering more accounts.

 

[TechnoFino]

I don't understand this. Are they asking Card members not to do any spends related to their own business ?
Or is it something related to money laundering ?

They are asking not to do any kind of business spends. Money laundering is a very strong word... I would say money rotation 😅

 

[TechnoFino]

What about Yaper? Are multiple transactions for iPhones (70k +) via yaper considered as high value? @TechnoFino

This is also a business transaction. But as I said earlier, volume matter the most

 

[thanix]

Government recently has placed higher TCS/TDS on forex outgo like travel & tourism through operators and even sending money for education. Credit cards expenses don't attract anything. So there is a possibility of exploiting by showing it as international expense as we are known to come up with workarounds 😃

 

[Deleted member 9785]

Lets hope they dont do like sbi and revoke past points and make cash balance negative. Seems to much losses for axis here on magnus and company

 

[Deleted member 9785]

Government recently has placed higher TCS/TDS on forex outgo like travel & tourism through operators and even sending money for education. Credit cards expenses don't attract anything. So there is a possibility of exploiting by showing it as international expense as we are known to come up with workarounds 😃

Actually too many CC geeks are underestimating the risk if income tax notices and penalties in todays tech age where we cant avoid showing 100 rs of interest. That will come and bite people a lot. Always keep credit card spend max 60-65% of your annual ITR.

 

[Manu624]

I suspect a lot of people would not be able to justify their spends and their cards will be automatically cancelled especially if the person involved is rotating a lot of funds through BharatNXT or other methods available on this platform. Coming to UPI payments for credit card payments, Axis does not have any major rewarding cards especially on RuPay platform at least as of now.

Does rupay credit card even get them MDR. Last time I heard was there was no MDR. Also tap and pay, single click is not available for rupay. Also Visa has good programs like airport lounges.

 

[BestBanker]

They are asking not to do any kind of business spends. Money laundering is a very strong word... I would say money rotation 😅

Banks should regulate this and not cancel any cards.
Amex even offers two cards just to differentiate Personal and Business spends 😉😉😉

 

[makagr]

Best to avoid all this along with manufactured spends

Yes, will avoid.

 

[makagr]

Update -
Axis Bank has already sent notifications to more than 200 accounts on March 4, 2023. Now they have sent such a cancellation notice to more than 500 credit card accounts yesterday. and they are also filtering more accounts.

That’s too many accounts, many people have not confirmed here.

 

[churn]

From twitter:

 

[TechnoFino]

Banks should regulate this and not cancel any cards.
Amex even offers two cards just to differentiate Personal and Business spends 😉😉😉

right. I wish Amex came out with business cards just like they do in the USA market.

 

[neogen]

A lot of businesses allow their employees to use their personal Credit Card to cover various work expenses, like travel tickets, hotel bookings, purchase of office supplies, food, etc. What about that?

 

[TechnoFino]

From twitter:

Do you really think Axis will cancel my credit cards even after I submit all the invoices on my name? 😅

 

[Indian]

From twitter:

His @TechnoFino card not going to close axis, as he may having more savings than cards with axis,( 5 cards with axis must be having some investments) he will handle this issue is his left hand, Example my friend received same notice from icici in 2018 , he replied i won't share any documents as you are not entitle to verify , you must ask the vendor or merchant for genuine transaction , if you close the card ,i close my savings account along with other investments, then nothing happen so far.

 

[Deleted member 9785]

Do you really think Axis will cancel my credit cards even after I submit all the invoices on my name? 😅

Hi Techno - What is the ratio of your annual credit card spends : ITR

 

[churn]

Do you really think Axis will cancel my credit cards even after I submit all the invoices on my name? 😅

I do not want to comment on anything here. But I do not think you will have an issue. All this will do for you is just a couple of hours worth of time wasted. Time is important.

 

[Wealth is my birth right!]

His @TechnoFino card not going to close axis, as he may having more savings than cards with axis,( 5 cards with axis must be having some investments) he will handle this issue is his left hand, Example my friend received same notice from icici in 2018 , he replied i won't share any documents as you are not entitle to verify , you must ask the vendor or merchant for genuine transaction , if you close the card ,i close my savings account along with other investments, then nothing happen so far.

In front of banking regulator and income tax department we can’t go like that.
With a 50 lakh portfolio no bank will take the pain of them being noticed for weak fraud checks