Team-BHP > Shifting gears


Reply
  Search this Thread
2,000,747 views
Old 9th May 2019, 10:40   #3151
BHPian
 
Join Date: Nov 2013
Location: Bir-Billing, HP
Posts: 478
Thanked: 893 Times
Re: The Credit Card Thread

Quote:
Originally Posted by rkg View Post
It varies from bank to bank. Better to pay in full to avoid complications.
Amex is very clear about. It clearly mentions any such statement credit after billing date will not accounted as payment
For me, it has worked so far with HDFC, SBI, ICICI and Axis bank cards. Also, I am pretty sure what Amex is saying can be challenged in court.
Let me give you an example for why it is wrong.
Let us assume you book tickets worth 2L with you credit card. Now after the billing date, if the airlines cancels the flight and refunds the amount. Why would you still have to pay 2L to the card provider? Makes no sense, and that's why most cards I have used, don't have this illogical rule.
rdst_1 is offline  
Old 9th May 2019, 11:13   #3152
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Chandigarh
Posts: 307
Thanked: 389 Times
Re: The Credit Card Thread

Quote:
Originally Posted by rkg View Post
It varies from bank to bank. Better to pay in full to avoid complications.
Amex is very clear about. It clearly mentions any such statement credit after billing date will not accounted as payment
I am also using Amex but not aware of this. Can you please provide any link or reference. It will be useful. TIA.
gupta_chd is offline  
Old 9th May 2019, 11:45   #3153
Senior - BHPian
 
Join Date: Dec 2008
Location: Bangalore
Posts: 3,415
Thanked: 5,095 Times
Re: The Credit Card Thread

Quote:
Originally Posted by rdst_1 View Post
Let us assume you book tickets worth 2L with you credit card. Now after the billing date, if the airlines cancels the flight and refunds the amount. Why would you still have to pay 2L to the card provider?
Because what you have contracted with the card issuing bank is to pay the outstanding balance (or a minimum due based on the outstanding balance) as on statement date. Not as on any arbitrary date after the statement is generated. I'm pretty sure the contractual obligation will stand in court.

Now, if the refund / credit comes through after the statement date but before the due date, then a case can be made for paying only the difference; but some card providers make a distinction between payments made by cardholders and other credits to the card account; and their T&C states it explicitly that the payment obligations are of the first type, in which the second type is not considered.

Note that this second part is at the discretion of the card issuer.
binand is online now  
Old 9th May 2019, 11:50   #3154
BHPian
 
Join Date: Nov 2013
Location: Bir-Billing, HP
Posts: 478
Thanked: 893 Times
Re: The Credit Card Thread

Quote:
Originally Posted by binand View Post
Now, if the refund / credit comes through after the statement date but before the due date, then a case can be made for paying only the difference; but some card providers make a distinction between payments made by cardholders and other credits to the card account; and their T&C states it explicitly that the payment obligations are of the first type, in which the second type is not considered.

Note that this second part is at the discretion of the card issuer.
Most of the card providers, who are sane and logical, do follow the second type as I have stated above, from my experience with those card providers. I believe that the courts would also follow the same logic if such a case were to be ever presented in front of a judge as the card provider would have gotten all of their money back before the due date, irrespective of whether it was a refund or a payment.
rdst_1 is offline  
Old 9th May 2019, 12:22   #3155
Senior - BHPian
 
Join Date: Jul 2008
Location: Bangalore
Posts: 2,089
Thanked: 713 Times
Re: The Credit Card Thread

Quote:
Originally Posted by diyguy View Post
I had a situation once when I paid in excess of my card due and my card was in credit rather than a debit balance. On enquiring with the bank if I can withdraw this using the atm, I was told I would incur a cash withdrawal fee and interest on the said amount on my next statement. The only way was to spend the excess amount on card purchases and have it adjusted.
This depends on bank
Once I added an extra zero and paid 2Lakh+ instead of 20K+ amount on my Citibank corporate card using Citibank Suvidha account .

Called up Citibank helpline they refunded the excess amount immediately
amitk26 is offline  
Old 9th May 2019, 12:29   #3156
rkg
Senior - BHPian
 
Join Date: Apr 2005
Location: bangalore
Posts: 1,044
Thanked: 593 Times
Re: The Credit Card Thread

Quote:
Originally Posted by gupta_chd View Post
I am also using Amex but not aware of this. Can you please provide any link or reference. It will be useful. TIA.
Please go through the attachment.
Attached Thumbnails
The Credit Card Thread-amex.png  

rkg is offline  
Old 9th May 2019, 13:02   #3157
Senior - BHPian
 
Join Date: Dec 2008
Location: Bangalore
Posts: 3,415
Thanked: 5,095 Times
Re: The Credit Card Thread

Quote:
Originally Posted by rdst_1 View Post
Most of the card providers, who are sane and logical, do follow the second type as I have stated above, from my experience with those card providers.
I asked my Citi relationship manager; he said payments have to be through one of the modes listed in the MITC for them to be accounted as "payment covering statement balance". These are all user-triggered (netbanking, OTC, cheque/draft, ECS).

Any other credit to the card account (refunds, cashbacks etc.) are only adjusted against future spends.

The same language is present in the MITC of a few cards that I checked on the web.

As someone who pays the statement balance in full every month, this is not something I have had to think about or get definitive answers, though.

Edit: To be clear - I agree this seems like a grey area right now.

Last edited by binand : 9th May 2019 at 13:07.
binand is online now  
Old 10th May 2019, 10:28   #3158
Senior - BHPian
 
Join Date: Aug 2010
Location: Delhi
Posts: 2,572
Thanked: 2,689 Times
Infractions: 0/1 (5)
Re: The Credit Card Thread

Quote:
Originally Posted by rkg View Post
It varies from bank to bank. Better to pay in full to avoid complications.
Amex is very clear about. It clearly mentions any such statement credit after billing date will not accounted as payment
Not for all AMEX cards. For my Charge card, the credits are reflected online and the amount due adjusted. This month I had 3 credits after the bill was generated, and each time the amount due was reduced.

But yes if you are going to rack up spends more than the credit amount, it is better to pay up, it is anyway going to be adjusted the next billing cycle.
Aroy is offline  
Old 10th May 2019, 11:32   #3159
BHPian
 
Join Date: Jun 2007
Location: Bangalore
Posts: 192
Thanked: 125 Times
Re: The Credit Card Thread

Quote:
Originally Posted by binand View Post
I asked my Citi relationship manager; he said payments have to be through one of the modes listed in the MITC for them to be accounted as "payment covering statement balance". These are all user-triggered (netbanking, OTC, cheque/draft, ECS).
Its not statement total balance, it is minimum amount due for that statement.

Ie., any cashback or merchant refunds cannot be adjusted against the minimum amount due, but can be adjusted against total amount. So basically customer initiated payment must be always greater than or equal to the minimum amount.
smnrock is offline  
Old 10th May 2019, 11:34   #3160
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Chandigarh
Posts: 307
Thanked: 389 Times
Re: The Credit Card Thread

Quote:
Originally Posted by rkg View Post
Please go through the attachment.
It mentions only redemption and it is way different from cashback and payment reversals. Although it could be applicable for these as well, not sure.
gupta_chd is offline  
Old 15th May 2019, 11:33   #3161
Oxy
BHPian
 
Join Date: Sep 2011
Location: Bangalore
Posts: 224
Thanked: 482 Times
Re: The Credit Card Thread

Ok so here is something stupid that has happened with my Stanchart Super Value Titanium - the card was sold to me saying an annual fee of Rs.750 + GST will be charged if my annual spend is less than Rs.60,000. I was not too fussed about this because my fuel expenses itself is usually more than that, for which I use the card primarily.

Now in my last statement, I see they charged me this annual fee and GST, so I called them up to ask what was my total spend on the card in the last 12 months. They tell me it is well over a lakh (which means I am not liable to pay the annual fee), but the annual fee is charged by default and it will be automatically waived off in 90 days.

Is this normal? I find it very strange. Why should I pay now (specially an amount which I am not supposed to pay in the first place) and then wait 90 days for it to be credited back? What if it is not credited back and I forget to follow up? This is an unnecessary headache.

Last edited by Oxy : 15th May 2019 at 11:35.
Oxy is offline  
Old 15th May 2019, 11:42   #3162
Senior - BHPian
 
Pancham's Avatar
 
Join Date: Dec 2009
Location: Kolkata/NCR
Posts: 1,739
Thanked: 2,601 Times

Quote:
Originally Posted by Oxy View Post
Ok so here is something stupid that has happened with my Stanchart Super Value Titanium - the card was sold to me saying an annual fee of Rs.750 + GST will be charged if my annual spend is less than Rs.60,000. I was not too fussed about this because my fuel expenses itself is usually more than that, for which I use the card primarily.

Now in my last statement, I see they charged me this annual fee and GST, so I called them up to ask what was my total spend on the card in the last 12 months. They tell me it is well over a lakh (which means I am not liable to pay the annual fee), but the annual fee is charged by default and it will be automatically waived off in 90 days.

Is this normal? I find it very strange. Why should I pay now (specially an amount which I am not supposed to pay in the first place) and then wait 90 days for it to be credited back? What if it is not credited back and I forget to follow up? This is an unnecessary headache.

Yes it is absolutely normal. Had the same card although my threshold was 30k.
Pancham is online now  
Old 15th May 2019, 11:44   #3163
BHPian
 
ksameer1234's Avatar
 
Join Date: Sep 2014
Location: Mumbai
Posts: 775
Thanked: 2,700 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Oxy View Post
Now in my last statement, I see they charged me this annual fee and GST, so I called them up to ask what was my total spend on the card in the last 12 months. They tell me it is well over a lakh (which means I am not liable to pay the annual fee), but the annual fee is charged by default and it will be automatically waived off in 90 days.
Happened with me as well. Annual fee was charged, I forgot it for several months, wrote to them for reversal and then it was reversed. Since there is a clear criteria for fee waiver, I don't doubt their intentions but it is true that if one does not demand reversal, fee will not be reversed.
ksameer1234 is offline  
Old 15th May 2019, 11:54   #3164
Team-BHP Support
 
Join Date: Sep 2010
Location: All over!
Posts: 7,302
Thanked: 16,923 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Oxy View Post
Is this normal? I find it very strange. Why should I pay now (specially an amount which I am not supposed to pay in the first place) and then wait 90 days for it to be credited back? What if it is not credited back and I forget to follow up? This is an unnecessary headache.
Nope. When I saw the charge, I called the bank within a week: the first person said, I hadn't met the spend criteria and charge would hold. I said I'd rather cancel the card but first wanted to use my points/cashback.

Once I had done that, I called again with the intention to cancel the card; this person checked my account again and mentioned I had indeed met the spend criteria and the annual charge would be waived. The refund of both 750 and the GST amount was credited within a week on my statement.

What I'm surprised is, SC actually refunded the whole amount (750 + GST); for another such issue with HDFC (regarding lounge access), I was told they won't refund GST.
libranof1987 is offline  
Old 15th May 2019, 12:12   #3165
BHPian
 
Join Date: Mar 2018
Location: Thane - MH04
Posts: 571
Thanked: 2,171 Times
Re: The Credit Card Thread

Quote:
Originally Posted by libranof1987 View Post
What I'm surprised is, SC actually refunded the whole amount (750 + GST); for another such issue with HDFC (regarding lounge access), I was told they won't refund GST.
Yes, HDFC doesn't refund GST charged on any of the charges levied on you. Some accounting game it seems to me, I mean they may just not pass on the GST to the govt eventually and keep the change with them
sunilch is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2023, Team-BHP.com
Proudly powered by E2E Networks