Team-BHP - The Credit Card Thread

Quote:

Originally Posted by Lij (Post 3338790)

Yesterday got an sms mentioning my ICICI bank credit card is blocked suspecting compromise on it.
I checked with the call center and they said that multiple attempts for transaction were made at a single merchant for purchase due to which they blocked my card and have issued a new one against it. They didn't mention which merchant it was attempted at.
On checking luckily the outstanding amount was same as the that after my previous successful transaction. So no monetary loss!!

If it was merchant outlet, then must have been a card present transaction. If you remember your last card present transaction outlet, that is the culprit then.

Quote:

Originally Posted by Gokrish (Post 3338917)

If it was merchant outlet, then must have been a card present transaction. If you remember your last card present transaction outlet, that is the culprit then.

My last card present transaction was at Pantaloons on Dec 31st. I don't recollect the lady at the counter swiping more than once. After that had done an internet transaction on Monday. But I got the card compromised sms only yesterday.

Quote:

Originally Posted by Lij (Post 3339101)

Quite possible that the lady could have swiped it more than once. What was this internet transaction subsequent to the Pantaloons one? Was this a foreign currency payment?

Five years back, there was a training session i was sitting at on Banking Domain. The presenter was talking about how merchants charge this 2% and how its illegal to do so, and he gave us all audience only one hint.

The moment a merchant talks about additional charge, all we need to do is to ask for his "Merchant Banker" and call the bank help desk / merchant banker ( if the merchant is bold enough to give the Number ).

I have faced several situations hence where this 2% dialogue is thrown and the first reaction is do is to ask which bank they have the transaction with and the merchant banker number - and 90% of times it has worked that i swiped without any charge. The 10% is those cases, where the merchant denied doing business - or politely, asking me to get out. But, ever since i attended that program, i havent paid this at all -across jewellery, auto or any kind of purchases.

The Banks indeed charge merchants because there are additional costs for the bank, but the merchant cant charge back to the customers - logic is that the customer typically would spend more money thru a card as opposed to what he/she would do with cash - and therefore, the merchants get additional revenue. And hence, they shouldnt be passing on this cost to customers.

Worst case, one small email to the ombudsperson of the merchants bank helps, and in all probability, the bank will remove their POS from the merchant.

Quote:

Originally Posted by jkrishnakj (Post 3344368)

The moment a merchant talks about additional charge, all we need to do is to ask for his "Merchant Banker" and call the bank help desk / merchant banker ( if the merchant is bold enough to give the Number ).

the merchant cant charge back to the customers - logic is that the customer typically would spend more money thru a card as opposed to what he/she would do with cash - and therefore, the merchants get additional revenue.

First thing - in the US, a court has ruled that merchants are allowed to pass on the interchange fees to the customers. This was about a year ago, and if pressed I can dig up a link. :) Obviously that ruling is applicable only there, but it does show that merchants can provide coherent arguments in their favour that do stand up in a court of law.

The reason usually cited against the additional charge is that it is discriminatory to charge different prices based on mode of payment. But on the other hand, elsewhere it is OK to charge customers who pay cash, something for the cost of handling currency notes.

I generally walk out of the store if it tries to charge me for credit card payments. But some monopoly retailers - fuel outlets, IRCTC, BESCOM/TANGENCO etc. - you really can't escape. :-(

The one time an automobile service station (I think it was the Kinetic/Honda two-wheeler place in Ranigunj in Hyderabad - forgot its name) I raised a big stink with the bank (ICICI Bank then). What I had in my favour was the invoice which was for amount X and the charge slip for amount X+2%. The bank eventually refunded me the excess 2% - don't know what transpired between them and the merchant.

Quote:

Originally Posted by sagarpadaki (Post 3344605)

Can someone post the direct link to the RBI webpage which explicitly states this additional charge is illegal?

I found a link of RBI. The Clause 4: is for Debit Card.

http://www.rbi.org.in/scripts/notifi...id=8461&mode=0

4. Levying fees on debit card transactions by merchants - There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards. Such fee are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments.

The below link is for Credit Card & Debit Card.
Clause 4.18: where its saying - "Charges are levied directly on customers only at few locations like petrol stations etc.

http://www.rbi.org.in/scripts/Public...2&SUBSECID=0#4

Quote:

Originally Posted by noopster (Post 3344874)

I doubt there is any such law. Government owned oil companies and the Indian railways both charge a 2.5% surcharge on card transactions.

I think the additional charge on the fueling stations depends upon the bank and credit card holder agreement. For example I have two cards, one from HDFC and the other from ICICI. HDFC does not charge for transactions between Rs.400 and 2000 but ICICI does.

Quote:

Originally Posted by binand (Post 3344659)

I generally walk out of the store if it tries to charge me for credit card payments. But some monopoly retailers - fuel outlets, IRCTC, BESCOM/TANGENCO etc. - you really can't escape. :-(

I have now started to follow these rules:

Fuel Outlets: I use my ICICI credit card on HP bunks and my Citibank credit card on IOC bunks. So in these cases, I get the fuel surcharge waived off. At all other bunks, I pay cash.

IRCTC: I pay with my debit card.

BESCOM: I pay with Airtel Money. Really easy, hassle free and zero extra charges.

Quote:

Originally Posted by Oxy (Post 3345412)

IRCTC does charge you for debit cards .
https://www.irctc.co.in/payment.html

Recently bought apparels from french connection store, I didn't like the shirts after reaching home so next day went to their store to exchange, they refused to exchange said we can't exchange during sale, really fed up with them, I made the payment via ciibank card, anything citiank can do if i file a dispute ? Any help would be appreciate.
Thanks !