[narayan]

Originally Posted by noopster

Just a random musing: now that card acceptance has become more prevalent, I find myself using credit card for virtually every transaction, including Rs. 6/- for chai at our company cafeteria. While is is great for the cashless economy I find that it clutters up my CC statement no end!

I used to use one card exclusively for petrol and another for everything else. In the aftermath of the big D, one card is almost exclusively with the missus these days, so all my transactions go on my primary card.

Need to figure out a better system!

Valid concern but the way to look at it could be that the additional effort to review more line items in the cc statement hopefully gets offset by the reducing effort around handling cash ( withdrawal,carrying change etc ).

[binand]

Looks like one of three main reasons for the existence of this thread will be inconsequential soon:

http://economictimes.indiatimes.com/...w/56500192.cms

This could have been done ages ago, though.

[tud]

Originally Posted by binand

Looks like one of three main reasons for the existence of this thread will be inconsequential soon:

http://economictimes.indiatimes.com/...w/56500192.cms

This could have been done ages ago, though.

So the easy way out for the oil marketing companies will be to include this card usage charges into the fuel cost so that they are not burdened. They would increase the price of Rs 60 diesel to Rs 61.2 and get away from any cost burden for them. Even when global oil prices were dropping we saw a rise in fuel price in the name of taxes. So this will be just another reason to raise fuel cost. The ones who pay by cash will end up spending more. The ones who paid by card and still got fuel surcharge waived off will also pay more.

The best way forward would be for the banks to absorb this cost since they are the only ones working on higher margins when compared to the Oil Companies and Fuel Pumps. The 0.75% incentive could be stopped. That is an unnecessary process.

[sgiitk]

Originally Posted by binand

Looks like one of three main reasons for the existence of this thread will be inconsequential soon:

http://economictimes.indiatimes.com/...w/56500192.cms

This could have been done ages ago, though.

Globally, the price of the transaction charges is built into the price. In Socialist India when profit was criminal, the margin of the Petrol Bunk was reportedly as low as FIVE PAISE per litre. Maybe this led to the devil of adulteration. I remember once dealer telling me, if the sale is under a tanker a week, the pump cannot even break even with honest dealing.

They had to agitate many times, and even today I doubt if the margin is a rupee. In this margin they have to pay for the location, the upkeep and also their staff. Globally, petrol firms negotiate a lower rates with the banks for pump transactions. I am sure our OMCs were sleeping in the days when the charges had been waived.

[tud]

Originally Posted by sgiitk

They had to agitate many times, and even today I doubt if the margin is a rupee. In this margin they have to pay for the location, the upkeep and also their staff. Globally, petrol firms negotiate a lower rates with the banks for pump transactions. I am sure our OMCs were sleeping in the days when the charges had been waived.

There are some lorry owners association bunks in Salem. They give a discount of 50p per litre of diesel throughout the year. I have also read bhpian h14 mentioning a bunk in Coimbatore which does not hike price even if the Govt raises it, till they finish the existing stock at their station. So they do operate on good margins.

The transaction charges were never waived, it was passed to the end consumer. Some paid. Some got it waived. Some kept paying without any knowledge that this was being added.

[vinit.merchant]

Originally Posted by sgiitk

In Socialist India when profit was criminal, the margin of the Petrol Bunk was reportedly as low as FIVE PAISE per litre. Maybe this led to the devil of adulteration. I remember once dealer telling me, if the sale is under a tanker a week, the pump cannot even break even with honest dealing.

I had the same intuition, until I met a friend who owns a pump.
Per him, it is not possible to earn much by adulteration + it lends a bad name in the market pretty quick.
The only OTHER way of earning for them was to grease hands of officers at the refinery from where the trucks are released.
It is another case that without greasing the hands, one cannot even have the re-fuel truck on time, but some extra greesing and the entire truck is released without a trace anywhere.
All that it costs the owner is the greesing (which was not exactly a small amount).

Maybe bad fuel quality is more to do with the avoidance of timely maintenance and upkeep of the bunks.

[binand]

Originally Posted by sgiitk

I remember once dealer telling me, if the sale is under a tanker a week, the pump cannot even break even with honest dealing.

Yet I have never seen a pump go out of business. If anything, they seem to be doing roaring trade - maybe it is because I am looking only within Bangalore city. Sale under a tanker a week seems like the rock bottom to me; my f-i-l's house is adjacent to a pump on a very minor side road off MC Road in Kerala - even that pump takes 2-3 tankers of fuel daily.

Here are the numbers: http://ppac.org.in/WriteReadData/use...a_DC_MSHSD.xls

I do agree that it is a low-margin business; but the volumes most pumps see seem to sustain it. What I don't understand is why revenue augmentation via services like florists, convenience stores, PUC/insurance etc. aren't very prevalent?

Also see: https://www.quora.com/How-much-money...-make-in-India

[Bh.P]

I recently applied for a HDFC Bank Regalia card and got it. At the time of application and at the time of phone verification I had requested for a reduced credit limit than promised, and was assured it would be done.

When I got the card, I noticed that the credit limit was way higher than the limit I had requested.

The customer care says they cannot reduce the credit limit for a Regalia. If I send them a written and signed request to reduce the limit by snail mail (really? I thought we were talking of digital India!), they would cancel my Regalia card and send me a different one suitable for my requested limit.

My intention of requesting a reduced limit was to limit my liability in case of fraudulent transactions. Does anyone know if the Regalia card has inbuilt security features? Does it indemnify me of paying in case I report a fraudulent transaction? Is there any document/HDFC web page I can confirm this from?

[prateekm]

Originally Posted by Bh.P

I recently applied for a HDFC Bank Regalia card and got it.
...
Is there any document/HDFC web page I can confirm this from?

In the HDFC Bank netbanking, there is an option to set sub-limits and net-limits for a particular card. Using that could help you solve your problem.

[SilentEngine]

Originally Posted by Bh.P

My intention of requesting a reduced limit was to limit my liability in case of fraudulent transactions. Does anyone know if the Regalia card has inbuilt security features? Does it indemnify me of paying in case I report a fraudulent transaction? Is there any document/HDFC web page I can confirm this from?

Hdfc credit card fraud division once proactively detected fraudulent transaction in my regalia card and immediately blocked the card after calling me.

Setting sub limits would also work to your advantage instead of replacing with a lower tier card. You can also disable international usage depending on your usage.

[procrj]

Residual interest - not sure if every bank charges this but this month I was levied residual interest by Citi and here is how it works

Here's an example:

Say you've been paying down a balance for several months and your credit card statement, dated the first of the month, says that your balance is now just $1,000.

When you read that statement, you're excited because yofu know that you have $1,000 in savings that you can use to pay down that balance.
You send in your $1,000 check to the issuer on the fifth of the month, rejoicing in having finally paid off your credit card and hiding the card in a desk drawer.

The issuer applies the payment to your account on the 10th of the month.
Next month, you receive another statement saying that you currently hold a balance of $7.23.

That $7.23 is residual interest. In this example, it is the amount of interest that was charged to your account between the first of the month and the 10th.

Source: http://www.creditcards.com/credit-ca...erest-1268.php

Moral of the story - always check your statement and ensure that you pay out all outstanding before payment due date! Carrying over is just too damn expensive.

I also use SBI & HDFC cards but have never seen them levy residual interest. Anyone else who has had residual interest charges from other banks?

[Bh.P]

Originally Posted by Zappo

As far as the HDFC cards are concerned they are either Visa or Mastercard (you can choose) and hence get accepted at all outlets that own an EDC machine. On top of that cards like Regalia gives you fab returns. Needless to say they do not have any fuel surcharge in any of the fuel outlets. This is irrespective of the brands, type of ownership, EDC machine used etc.

I recently got a HDFC Bank Regalia.
Used it at a shell outlet to fill in Rs. 1500/- worth petrol.

Below is what my statement reads:
SHELL NAGA GOWRI SAMPA BANGALORE 1543.13 Dr
PETRO SURCHARGE WAIVER 37.65 Cr

This is how I think 1543.13 is arrived at

Petrol cost 1500.00
Petrol Surcharge (@2.51%?) 37.65
Service tax on surcharge (@14.6%?) 5.48
Total charge 1543.13

And they refunded me only the surcharge, which is 37.65.

I ended up paying Rs. 5.48 more than what I bought.

I am not sure if this is only for new card holders (which I think is unfair), or a new norm on all HDFC cards.

[john.gt]

Originally Posted by Bh.P

I am not sure if this is only for new card holders (which I think is unfair), or a new norm on all HDFC cards.

I don't think its for new cards or new norms. I've been seeing this on HDFC cards for a while. The same charge is on their debit cards too.

[rkg]

Originally Posted by Bh.P

SHELL NAGA GOWRI SAMPA BANGALORE 1543.13 Dr
PETRO SURCHARGE WAIVER 37.65 Cr
This is how I think 1543.13 is arrived at

Petrol cost 1500.00
Petrol Surcharge (@2.51%?) 37.65
Service tax on surcharge (@14.6%?) 5.48
Total charge 1543.13

And they refunded me only the surcharge, which is 37.65.

I ended up paying Rs. 5.48 more than what I bought.

I am not sure if this is only for new card holders (which I think is unfair), or a new norm on all HDFC cards.

It is always same with HDFC. Earlier they are refunding it fully , if the EDC machine belongs to them. Now even if the EDC machine belongs to them, they are charging service tax.
OT: Service tax is @15%

[Dry Ice]

Originally Posted by Bh.P

I recently got a HDFC Bank Regalia.
Used it at a shell outlet to fill in Rs. 1500/- worth petrol.

Below is what my statement reads:
SHELL NAGA GOWRI SAMPA BANGALORE 1543.13 Dr
PETRO SURCHARGE WAIVER 37.65 Cr

This is how I think 1543.13 is arrived at

Petrol cost 1500.00
Petrol Surcharge (@2.51%?) 37.65
Service tax on surcharge (@14.6%?) 5.48
Total charge 1543.13

And they refunded me only the surcharge, which is 37.65.

I ended up paying Rs. 5.48 more than what I bought.

I am not sure if this is only for new card holders (which I think is unfair), or a new norm on all HDFC cards.

I had a HDFC credit card earlier, and had managed to get the tax reversed as well. Although, after several follow ups and escalations. Do give it a shot.

Once it is set in their system, it applies this reversal on future transactions, you do not need to do this for all of them.