Team-BHP > Shifting gears


Reply
  Search this Thread
2,159,852 views
Old 21st August 2023, 19:58   #6916
BHPian
 
Join Date: Aug 2014
Location: DEL, SFO
Posts: 901
Thanked: 2,838 Times
Re: The Credit Card Thread

I had an interesting and unusual experience with my IDFC Wealth card recently. This is my most coveted card with a credit limit in excess of 20 lakhs and is mostly used on overseas trips or when purchasing something from abroad as it provides 2.5% cashback. It also provides domestic and international lounge access.

A couple of months ago, I spent about 2 months in Korea and used it extensively. It was used for tiny Rs50 purchases to larger ones worth several thousand. No issues whatsoever and this has been the same in various other countries. I ended up purchasing Samsung Watch 5 pro and Buds 2 Pro as they were much cheaper in Korea. These were purchased from an official Samsung store in a large mall in Seoul. Now, Korea, like many countries in Europe and Asia, provides a refund of VAT (like GST in India) to foreign tourists. You have to scan the receipt and then swipe your card after you clear security at the airport to show that you are leaving the country. My flight was at night when the manned stations were closed and automated machines were the only option. After about a month, I received the tax refund as a credit on the card in two transactions for the two items purchased. These were small amounts worth Rs 700 and 1500 respectively. I was satisfied and didn't think anything was wrong. However, about 30 days later, my card simply disappeared from the IDFC app. There was a message stating that it was some technical error and they were working on it. So I didn't worry much about it. A few days passed and it still didn't show up. Then I tried netbanking and it wasn't showing there either. So I called customer care and was shocked to hear that my card had been blocked due to RBI instructions! After being transferred to senior rep, I learnt that they had declared these tax refunds from a company called Global Tax Free as prohibited. Despite repeated requests, they were adamant that there was nothing they could do as it was an RBI order. What was worse was that I owed several lakhs on it and I now had no way of knowing the amount due or the due date. They were not even willing to let it be blocked but to at least enable me to see its status on the app. They suggested that I should make the payment via some third party app like Cred!

I explained the situation and offered to share receipts for the transactions. I was asked to email and I sent the purchase receipts, the brochure explaining the tax free programme from the government of Korea and the tax refund receipts that clearly showed the same purchases and the amounts of refund. I received an automated email that they would respond in 24 hours. Several days passed and I did not hear anything. I called customer care and they took requests, I emailed a few times to various email addresses but there was no response and no call back at all! I contacted the branch manager as I am a top tier client and she also emailed the concerned department and yet there was absolutely zero response. Finally, I Tweeted. Now I received a call from their social media team and they again asked me to email and I did so. After a few days, they came up with further requests for more documentation, more emails and so on. Finally, they said that they were going to make an exception by issuing another replacement card but I would have to write a letter expressing regret and promising not to ever engage is similar transactions again. Even though I had done nothing wrong, I was tired of repeatedly explaining it and them not understanding it and I sent the required email. They followed up by asking for a hand written and signed letter to be sent via scan! Finally, after about 2 weeks, a replacement card was issued and a fee of Rs99 charged for it!

I believe their system flagged these transactions as income from international gambling or some other restricted activity. Has anyone else faced a similar issue?

Last edited by Lobogris : 21st August 2023 at 20:01.
Lobogris is offline   (50) Thanks
Old 22nd August 2023, 02:07   #6917
BHPian
 
Join Date: May 2016
Location: MH-12/KA-01
Posts: 100
Thanked: 286 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Lobogris View Post
So I called customer care and was shocked to hear that my card had been blocked due to RBI instructions! After being transferred to senior rep, I learnt that they had declared these tax refunds from a company called Global Tax Free as prohibited. Despite repeated requests, they were adamant that there was nothing they could do as it was an RBI order.
OMG!
My wife recently used my HDFC Infnia for purchase in Europe and applied for a tiny VAT refund. I am worried now if HDFC will also do the same with my card. I made her apply for VAT refund as we had never done that before. There was no cash refund facility so it should be credited in card.

Has anyone else faced this issue with HDFC?
VaibhaoT is offline   (3) Thanks
Old 22nd August 2023, 06:34   #6918
BHPian
 
Join Date: Jul 2008
Location: HYD
Posts: 540
Thanked: 1,183 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Lobogris View Post

I believe their system flagged these transactions as income from international gambling or some other restricted activity. Has anyone else faced a similar issue?
I think you can complain on RBI website (cms.rbi.org.in) and that will set the ball rolling within the bank! This is ridiculous that tax refund is illegal!
Comrade is offline   (6) Thanks
Old 22nd August 2023, 09:04   #6919
BHPian
 
Join Date: Dec 2020
Location: BANGALORE
Posts: 139
Thanked: 258 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Lobogris View Post

.... my card had been blocked due to RBI instructions! After being transferred to senior rep, I learnt that they had declared these tax refunds from a company called Global Tax Free as prohibited.
I remember getting tax refund long back in Europe and Singapore(global blue and there was one more - can't remember the name) where they gave a choice of cash refund or back on the credit card. I, always, took the cash option though there was a small fee deducted. Not sure if this is still the case or if this is a different scenario.
kiran_aithal is offline   (2) Thanks
Old 22nd August 2023, 12:11   #6920
BHPian
 
Join Date: Dec 2016
Location: UP-14/15, TS-09
Posts: 508
Thanked: 1,246 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Highh5 View Post
but SBI doesn't allow its own Rupay card to be used for UPI Payment. Came as a shock to me, I was not aware of that neither I read about it anywhere. Thank you!
Big Update: SBI Rupay Cards can now be added on Paytm or google pay. Basically, they are now enabled to make UPI payments.
Highh5 is offline   (1) Thanks
Old 22nd August 2023, 20:59   #6921
BHPian
 
Join Date: Jul 2021
Location: Mumbai
Posts: 128
Thanked: 181 Times
Re: The Credit Card Thread

Hi - just wanted to check if someone has upgraded from Regalia to Regalia Gold?
youknowitbetter is offline   (2) Thanks
Old 23rd August 2023, 00:30   #6922
BHPian
 
Samfromindia's Avatar
 
Join Date: Jan 2014
Location: Kolkata - Pune
Posts: 726
Thanked: 2,799 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Lobogris View Post
I received the tax refund as a credit on the card in two transactions for the two items purchased. These were small amounts worth Rs 700 and 1500 respectively. I was satisfied and didn't think anything was wrong. However, about 30 days later, my card simply disappeared from the IDFC app.

So I called customer care and was shocked to hear that my card had been blocked due to RBI instructions!

Finally, after about 2 weeks, a replacement card was issued and a fee of Rs99 charged for it!

Has anyone else faced a similar issue?
This is absolutely outrageous! Tax refunds are pretty common in many countries, including UAE. They charge only 5% as VAT, and tourist have option to recover 85% of the VAT amount through their refund provider named Planet. Users have option to get the refund credited on card which takes few days or cash. Issue with cash is they will covert it using airport forex rate which is as high as 10%, however you get instant refund on hand. Last year while coming back from Dubai I shopped for over 1L which included drone & apple watch and got refund in cash. However in my experience most people use card due to convenience and better forex rate. I haven't heard anyone facing issues you had, unless rules have been changed this financial year. And honestly what's the point of having a premium card in case you face this kind of support

https://www.planetpayment.com/en/countries/uae/

The Credit Card Thread-20221002_183633.jpg

India is also implementing something similar down the line:
https://www.deccanherald.com/busines...a-1181005.html

Last edited by Samfromindia : 23rd August 2023 at 00:32.
Samfromindia is offline   (9) Thanks
Old 23rd August 2023, 08:50   #6923
BANNED
 
Join Date: Apr 2015
Location: Kochi
Posts: 924
Thanked: 7,279 Times
Re: The Credit Card Thread

Quote:
Originally Posted by youknowitbetter View Post
Hi - just wanted to check if someone has upgraded from Regalia to Regalia Gold?
There's hardly any difference between both? I think it's better to wait till they offer Infinia.
The Rationalist is offline   (3) Thanks
Old 23rd August 2023, 10:01   #6924
BHPian
 
Artyom's Avatar
 
Join Date: May 2020
Location: Bengaluru
Posts: 582
Thanked: 1,598 Times
Re: The Credit Card Thread

Guys my parents are traveling to Canada this year in October.
Initially we wanted to go for a Forex card however later on I realized that I have 2 cards (RBL World bank Safari) and (Scapia by Fedral Bank) and both offer 0% markup fees on International transactions as their USP. So should i just give them the cards and ask them to use it there in Canada and we are all good or is there any caveat in between. Secondly how to claim the VAT refund while making the payment . I want to know the process if someone can brief me .
Artyom is offline   (1) Thanks
Old 23rd August 2023, 10:01   #6925
BHPian
 
Join Date: Sep 2009
Location: Bombay
Posts: 845
Thanked: 1,225 Times
Re: The Credit Card Thread

Quote:
Originally Posted by VaibhaoT View Post
OMG!
My wife recently used my HDFC Infnia for purchase in Europe and applied for a tiny VAT refund. I am worried now if HDFC will also do the same with my card. I made her apply for VAT refund as we had never done that before. There was no cash refund facility so it should be credited in card.

Has anyone else faced this issue with HDFC?
HDFC has its own set of headaches. I had informed the bank app / mobile banking that I'd be traveling to Thailand for a vacay on x dates and to let me use my Infinia. Buffoons didn't let my transaction go thru, creating an embarrassing situation in the hotel. Infinia gives 3.3% returns, so I prefer that. Luckily I had idfc as a back up card and swiped that. I did have a word with my RM from there and he said everything is a go. It did start working fine after a few days. Same HDFC would block my card after each transaction in the US and I have to call them and unblock it.
invidious is offline   (3) Thanks
Old 23rd August 2023, 10:18   #6926
BHPian
 
whitewing's Avatar
 
Join Date: Oct 2012
Location: Bangalore
Posts: 560
Thanked: 1,581 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Artyom View Post
Guys my parents are traveling to Canada this year in October.
Initially we wanted to go for a Forex card however later on I realized that I have 2 cards (RBL World bank Safari) and (Scapia by Fedral Bank) and both offer 0% markup fees on International transactions as their USP. So should i just give them the cards and ask them to use it there in Canada and we are all good or is there any caveat in between. ...
Please check if you can get an add-on card for your parents. It is not simply not worth the risk for your parents to use your card and run the off chance of getting into a dicey situation of being accused for impersonation.
whitewing is offline   (5) Thanks
Old 23rd August 2023, 10:28   #6927
BHPian
 
Artyom's Avatar
 
Join Date: May 2020
Location: Bengaluru
Posts: 582
Thanked: 1,598 Times
Re: The Credit Card Thread

Quote:
Originally Posted by whitewing View Post
Please check if you can get an add-on card for your parents. It is not simply not worth the risk for your parents to use your card and run the off chance of getting into a dicey situation of being accused for impersonation.
I tried that but unfortunately both these cards dont have this option.My parents will be accompanied by my relatives and wont be traveling solo.
I wonder how can they get into trouble by using these cards as I am giving them the cards along with the details and pin to use it.Its a Physical card with my name on it and they being my parents it should not be an issue.
I dont know if it makes sense but I can handover a hand written letter to them clearly stating that I am the owner of the cards and I am lending the cards to my parents to use.
But I appreciate the heads up.
My dad has a HDFC Regalia which has a 2.5% markup fee so it doesn't make sense to use it.
Another reason to give them the cards is that in case I want to buy any stuff the cards can be used thereby reducing any burden on them to carry and spend cash.

Last edited by Artyom : 23rd August 2023 at 10:30.
Artyom is offline  
Old 23rd August 2023, 10:39   #6928
BHPian
 
Join Date: Aug 2008
Location: IN
Posts: 136
Thanked: 41 Times
Re: The Credit Card Thread

Quote:
Originally Posted by Artyom View Post
I wonder how can they get into trouble by using these cards as I am giving them the cards along with the details and pin to use it.Its a Physical card with my name on it and they being my parents it should not be an issue.
I dont know if it makes sense but I can handover a hand written letter to them clearly stating that I am the owner of the cards and I am lending the cards to my parents to use.
Although it is very common and pragmatic that we give the cards between our close family to use (We all do that donít we?). However, when there are any issues, we may not be able to use our legal recourse.
Just read the link below, and this is just one example that we need to bear in mind.

https://bangaloremirror.indiatimes.c...w/64489453.cms
maheshmenon is offline   (2) Thanks
Old 23rd August 2023, 12:24   #6929
Distinguished - BHPian
 
itwasntme's Avatar
 
Join Date: May 2007
Location: BANGALORE
Posts: 6,973
Thanked: 12,524 Times
Re: The Credit Card Thread

Quote:
Originally Posted by whitewing View Post
It is not simply not worth the risk for your parents to use your card and run the off chance of getting into a dicey situation of being accused for impersonation.
Totally agree. In certain geographies and/or transaction types and/or value level and/or time of day, the PoS machine itself will prompt the cashier to ask for photo ID which matches the card holder. If it is not supplied, the transaction will be declined and every chance of your card being blocked immediately.

Please keep this as a backup plan for smaller value transactions only.
itwasntme is offline   (1) Thanks
Old 23rd August 2023, 14:06   #6930
PPS
Senior - BHPian
 
PPS's Avatar
 
Join Date: Dec 2010
Location: mumbai
Posts: 2,467
Thanked: 3,717 Times
Re: The Credit Card Thread

Quote:
Originally Posted by invidious View Post
HDFC has its own set of headaches. I had informed the bank app / mobile banking that I'd be traveling to Thailand for a vacay on x dates and to let me use my Infinia. Buffoons didn't let my transaction go thru, creating an embarrassing situation in the hotel.
Do you have your International Usage switched to always on? This is strange to hear as I have not faced any problems at all with my Infinia considering I've done 4 foreign trips in last 2 yrs. I did not bother to inform Bank App/Mobile banking,etc. Just switched on International Usage 1 day before the trip.
PPS is online now   (1) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks