Paying for Invoice Discounting by Credit Card

[vireshverma2594]

Many of us must be putting some money in invoice discounting through some common platforms online. There are two platforms I know of which allow us to pay for that using CC.
In the case of one platform, while they clearly mention payment allowed by bank account only, however, you may select UPI payment where you pay by Rupay Credit Card (instead of bank account) and payment gets accepted. In this case, the amount added to their wallet (through Credit Card UPI) can also be withdrawn to bank account, which almost makes it a CC to cash conversion system- which seems very shady.

In the case of the other platform, they very clearly have an option to pay via any Credit Card.

I want to know if this is even legal (at least second case should be legal since they themselves allow payment by CC very clearly), and if there is any risk of my card being flagged/ cancelled if I pay this way? I paid it once last month (and out of guilt + fear, paid off my card before due date) but I would definitely not do it if there is a risk of bank cancelling my card because of this. I'd much rather keep my card than lose it just for a few reward points.

(I am not naming the platforms as of now, however, if moderators think I can/ should, I am open to naming them).

 

[TheMentalist]

@kkk

 

[D₹V]

Many of us must be putting some money in invoice discounting through some common platforms online. There are two platforms I know of which allow us to pay for that using CC.
In the case of one platform, while they clearly mention payment allowed by bank account only, however, you may select UPI payment where you pay by Rupay Credit Card (instead of bank account) and payment gets accepted. In this case, the amount added to their wallet (through Credit Card UPI) can also be withdrawn to bank account, which almost makes it a CC to cash conversion system- which seems very shady.

In the case of the other platform, they very clearly have an option to pay via any Credit Card.

I want to know if this is even legal (at least second case should be legal since they themselves allow payment by CC very clearly), and if there is any risk of my card being flagged/ cancelled if I pay this way? I paid it once last month (and out of guilt + fear, paid off my card before due date) but I would definitely not do it if there is a risk of bank cancelling my card because of this. I'd much rather keep my card than lose it just for a few reward points.

(I am not naming the platforms as of now, however, if moderators think I can/ should, I am open to naming them).

Hahaha. You're just overthinking it.

Bank will not ban/block your card until you abuse it.

I mean once-twice in a month using this platform will never take you to way of blockage.

 

[vireshverma2594]

Hahaha. You're just overthinking it.

Bank will not ban/block your card until you abuse it.

I mean once-twice in a month using this platform will never take you to way of blockage.

Also, do you think in the second case it should not be a problem at all otherwise why would platform give Credit card option for payment?

 

[D₹V]

Also, do you think in the second case it should not be a problem at all otherwise why would platform give Credit card option for payment?

For casual use, it's fine.

No problem until you abuse.

They give option because they'll earn fees from your payment.

This isn't illegal.

 

[vireshverma2594]

For casual use, it's fine.

No problem until you abuse.

They give option because they'll earn fees from your payment.

This isn't illegal.

How will they earn fees? They are not chaging me any extra amount for payment via Credit Card? ANd will the bank/ Payment Gateway not charge them a fees for processing Credit Card transactions?

 

[D₹V]

How will they earn fees? They are not chaging me any extra amount for payment via Credit Card? ANd will the bank/ Payment Gateway not charge them a fees for processing Credit Card transactions?

They must be bearing charge for now

But it's not sustainable for them.

 

[thanix]

Also, do you think in the second case it should not be a problem at all otherwise why would platform give Credit card option for payment?

It is not a question of whether anyone or any platform accept a credit card or not. End of the day it will be for bank whether it is for personal or business purpose in case they flag it and investigate. If you get notice, please be prepared to show it as personal expense with invoices.

 

[vireshverma2594]

It is not a question of whether anyone or any platform accept a credit card or not. End of the day it will be for bank whether it is for personal or business purpose in case they flag it and investigate. If you get notice, please be prepared to show it as personal expense with invoices.

But this invoice discounting I am making in my name only (I don't even have a business to be able to put business expenses on card) and we don't get any invoice for this, no? Of course I can show proof of investment etc but what more can we show? If no business is involved, can it still be treated as business expense? How is one supposed to answer these cases to bank if they ask about it?

 

[kkk]

Adding my few points - I have been investing in Invoice discount more than a year now. There is a risk involved to this type of investment and if you are ok to take risk then you can do so. Ideally bank should not block your card for doing so as it's one type of investment(just like NPS). May be they can say no pints for this transaction.

I have invested through credit card for more than > 50 lakhs by using various credit cards but so far no blockage.

Curious to know the second platform which is allowing Credit card without any fees. I know one, if it's different I would definitely like to know.

 

[kkk]

But this invoice discounting I am making in my name only (I don't even have a business to be able to put business expenses on card) and we don't get any invoice for this, no? Of course I can show proof of investment etc but what more can we show? If no business is involved, can it still be treated as business expense? How is one supposed to answer these cases to bank if they ask about it?

It's one type on investment just like NPS or any other investment. You should have documents that you invested under your name. Now bank can consider this as business expense but as per my understanding it shouldn't be considered as business expense as it's one type of investment.

 

[JayKay]

Following

 

[lonely.eagle33]

Many of us must be putting some money in invoice discounting through some common platforms online. There are two platforms I know of which allow us to pay for that using CC.
In the case of one platform, while they clearly mention payment allowed by bank account only, however, you may select UPI payment where you pay by Rupay Credit Card (instead of bank account) and payment gets accepted. In this case, the amount added to their wallet (through Credit Card UPI) can also be withdrawn to bank account, which almost makes it a CC to cash conversion system- which seems very shady.

In the case of the other platform, they very clearly have an option to pay via any Credit Card.

I want to know if this is even legal (at least second case should be legal since they themselves allow payment by CC very clearly), and if there is any risk of my card being flagged/ cancelled if I pay this way? I paid it once last month (and out of guilt + fear, paid off my card before due date) but I would definitely not do it if there is a risk of bank cancelling my card because of this. I'd much rather keep my card than lose it just for a few reward points.

(I am not naming the platforms as of now, however, if moderators think I can/ should, I am open to naming them).

which platforms allow credit card to be used for invoice discounting ? i am quite active in that space and none of my platforms use CC. they allow only netbanking and UPI.

 

[lonely.eagle33]

Adding my few points - I have been investing in Invoice discount more than a year now. There is a risk involved to this type of investment and if you are ok to take risk then you can do so. Ideally bank should not block your card for doing so as it's one type of investment(just like NPS). May be they can say no pints for this transaction.

I have invested through credit card for more than > 50 lakhs by using various credit cards but so far no blockage.

Curious to know the second platform which is allowing Credit card without any fees. I know one, if it's different I would definitely like to know.

me too. can you pls share platform names. lets build this collective knowledge

 

[equalizer]

me too. can you pls share platform names. lets build this collective knowledge

Is this happening or is it a lost dream ?