Those things are all different.
The gift vouchers that banks offer—those are paid for by the banks themselves.
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What is bank reward system abuse ? don't Indians have civic sense in this too ?
The gift vouchers that banks offer—those are paid for by the banks themselves.
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Oh yeah. So Amazon GSTR filing saying multiple payments made to UBI, SBI, PNB etc are "different" and UBI/SBI/PNB showing zero such payments to Amazon is also "different"?
Send the link bro, I don’t know what you’re talking about.
But remember one thing: since you are a PSU bank employee, having incorrect information and sharing it is dangerous. It spreads wrong information to others.
Let me share the link for you. these are the RuPay offers and banks pay for all of them. Read it -
All the Visa Signature and Infinite offers you see on Poshvine are also paid by the banks.
One big problem in our country is that Visa/Mastercard never share their circulars properly in the open domain in India. The European Union had once strongly warned Visa/Mastercard that such things should be publicly available so everyone can see them.
Since there are no strict laws in India, people think Visa cards give a lot of offers. Of course, whatever offers are given, around 1% is paid by the Visa card network and even by RuPay but the remaining amount is paid by the banks.
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Padho acche se. All services by Rupay. Banks pay just 250 per year.
Utilization capped bhi toh padho bhai. Capping se pahele tak RuPay pay karta hai saare billing, sirf bank 250 per card per year pay karta hai (Once again isme bhi Amazon ya Cult fit etc jaisi companies pay nahi karta hai and capping k baad ka banks pay karta hai)
Upon breach of the portfolio level, cost to be billed to banks based on their utilization percentage
The details of the merchants and cost to the banks on feature overutilization is given in Annexure A.
The utilization limits of all the features would be calculated basis:
a) 100% of the card base at the end of the previous period; and
b) 50% of the cards issued in the current period
Remember one more thing, even for Visa card offers, the banks are the ones who have to pay. Of course there will be some capping, where the Visa network pays up to a limit and after that the banks pay the rest. But all those gift voucher offers, lounge access etc pay by banks.
What you’re saying, that banks don’t have to pay anything whether customers use the offers or not - is incorrect information.
Use a little common sense, bro. Why would Amazon spend crores on behalf of banks? It makes no sense. Yes, you can say that banks get some small discounts because of partnerships with Amazon. I can agree 100% on that. But even those have capping and that’s probably the same capping mentioned in NPCI’s circular.
Bank hamesa chahega ki kam se kam customers gift voucher and lounge utilized kare and woh 1% se 3% capping k under he rahe, taki bank ko Rs250 per card per year he dena pare. Jaise he capping se jada hoga banks ko har k chiz k liye full payment karna parega.
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What you’re saying, that banks don’t have to pay anything whether customers use the offers or not - is incorrect information.
"Show me where or when has any bank made direct payments to Amazon?"
Use a little common sense, bro. Why would Amazon spend crores on behalf of banks?
"Amazon spends on its own behalf. Not on bank's behalf. Prime is free for Amazon as its internal. Pehle to one year free trial tha. They know that even if 1 out of 100 renew, they generate new revenue stream which is 4x more profitable than non Prime. Also Prime members are likelier to spend at Amazon instead of competition. Win-win for Amazon. Banks help Amazon by giving Amazon vouchers."
It makes no sense. Yes, you can say that banks get some small discounts because of partnerships with Amazon. I can agree 100% on that. But even those have capping and that’s probably the same capping mentioned in NPCI’s circular.
"Show payments made to Amazon by any bank."
Bank hamesa chahega ki kam se kam customers gift voucher and lounge utilized kare and woh 1% se 3% capping k under he rahe, taki bank ko Rs250 per card per year he dena pare. Jaise he capping se jada hoga banks ko har k chiz k liye full payment karna parega.
"Ek example do kisi bhi Rupay issuer ka jisne kabhi capping breach kiya ho. 99% customers ko pata bhi nahi rehta. Just like 99% Infinia customers ko Smartbuy 5 per 150 kuch nahi pata and they redeem points as cashback at effectively less than 1% reward rate."
Banks don’t pay Amazon directly. In the case of RuPay/NPCI offers here, the bank pays RuPay, and RuPay pays their offer partner - Truztee. Truztee’s job is to pay the merchant’s bill for whichever offer was utilized.
For the direct bank offers— lets say for example bank offer like “Spend 1 lakh and get a ₹1000 Amazon gift voucher or other any gift vouchers" - banks partner with various third-party companies such as Gyftr, Woohoo, Sodexo/Zeta, Edenred/Accrew, Credence Rewards, etc.
When a customer redeems an Amazon gift voucher through Gyftr, Woohoo, etc., these third-party companies send their monthly or quarterly bill to the bank and the bank pays them.
So, banks are the ones actually paying for Amazon gift vouchers, Amazon Prime vouchers, etc., but they do it through these third-party companies or card network companies. And those third-party companies then pay the full amount to Amazon or whichever merchant issued gift voucher.
That’s how the whole system works.
Your last ques - "Ek example do kisi bhi Rupay issuer ka jisne kabhi capping breach kiya ho. 99% customers ko pata bhi nahi rehta. Just like 99% Infinia customers ko Smartbuy 5 per 150 kuch nahi pata and they redeem points as cashback at effectively less than 1% reward rate."
Yaar mera bhi toh yehi point tha, bas dfferent way se kaha tha ki banks ko khushi hoga ki jade se jada customer offers ko redeem na kare. Kyunki woh phir capping k under he rahega. Devaluation tabhi hote hai jab jade se jada customer sab ko offers k bare me pata chalne lagta hai and offer redeem karne lagte hai. Phir capping se jada customers redeem karenge and banks ko full bill pay karna par jayega.
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"Devaluation tabhi hote hai jab jade se jada customer sab ko offers k bare me pata chalne lagta hai and offer redeem karne lagte hai*
If I tell my friends or relatives to use Smartbuy effectively, they will say paka mat, card close kar dunga. Pehle voucher khareedu 10 jagah ghoom ke, fir voucher add Karu, for voucher se aadha pay Karu, point se pay Karu; itne jhamele se accha hain card hi band kar deta hoon aur koi simple card le leta hoon.
Most customers use credit cards to pay later or avail easy EMIs without regular hassle. Not for rewards.
Aadhe ko pata nahi rehta and batane pe bhi nahi sunna chahte and jinko samajh aata hain, unme bhi 50%+ bother nahi karte chawanni athanni ginne. People use vouchers when they pop up while they are booking something. Not from Truztee or Smartbuy or Poshvine or Gyftr.
And offers ke peeche bhaag ke card leke cashback lene waale to savings account se UPI pe bhi GCs lete hain and Amazon shopping bhi Cashkaro se karte hain.
Jo real hain woh dekho. Devaluation isn't related to costs. It's related to customer acquisition needs.
Yaha online forums me sab lootne he aate hai. Yaha ki baat kiya. Yaha saare online forums me jada se jada share k liye devaluation hote hai
Baki ya 50% i agree with you. Tumhara side bhi sahi hai. Matlab ek side k aise population bhi hai jinka tumne baat kiya abhi. 😀😀
baki bache 50% population woh log hai jo yaha online forums me aate hai lootne k mindset se. 😀😀
I don't understand the meaning of this post coming from you.. I've always seen you sharing tips to exploit banks and also bitch about it..
Are you okay?
Are you okay?
Some people be like:
morning to afternoon: share tips and tricks to loot the banks.
evening: go to bank and tell them to fix that loophole.
repeat
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"Yaha online forums me sab lootne he aate hai. Yaha ki baat kiya. Yaha saare online forums me jada se jada share k liye devaluation hote hai"
This is less than 0.01% of the population. Hum bank me agar sabko bolenge, request karenge ki please Amazon Prime, MMT, CultFit, Culinaire subscribe kare to aadhe log card surrender karenge aur bolenge Classic card do dimag mat kharab Karo.
Who gains from BMS? BMS, theatrey card issuer & bank. Not customer. Theatre khaali. Zero ke jagah kuch aa gaya revenue sabko. Customer se Paisa kata. Baaki sab me bhi kuch na kuch additional kharcha customer karta hain jo woh pehle na karta. Uske baad targeted ads aane lagte hai. Data ka game hain babu bhaiyya. Devaluation has nothing to do with forums. It's about acquisition costs, acquisition targets, CASA ratio, CD ratio etc. Ratios demand karenge customer aquisition to bhar ke offers aayenge. Nahi karenge to nahi aayenge. I know top bankers in all banks (pvt/public) (all bankers do as we have common forums like IIBF, SLBC, NLBC etc.) and kahi bhi devaluation ki reason "forum" nahi hoti. I can make you talk to the specific people who took devaluation decisions in IDFC, HDFC, Axis in video call. pooch Lena reasons sabse.
Jaha bhi monetary impact 1 trillion se kam ho (1 lakh crore), bankers do not consider those small numbers in strategic decisions. We are guided by ratios. Not by what Toms dicks and Harrys say on the internet.
Maine bhi bahut se bankers se baat kiye hai, Normal woh log bataye hai 1% to 2% k under he hua karte the ek time pe, matlab ki just few years ago. Par ab 5% cross karne lage hai.
Jaise jaise userbase badhne lage, last few years me sune he hone credit card k userbase double triple hone lage hai. Next 5 years me aur increase hone wale hai.
Uppar se Jio k aane se India me sab online aane lage hai. Knowledge sharing, lootne ki trick sharing bahut increase ho gaye hai.
Online forums, telegram, whatsapp groups, twitter, youtube etc sab jagha log tips and tricks share karne lage.
"So, This is less than 0.01% of the population". woh chiz ab nahi raha hai.
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No. Kyun hoga bhai? Unki kya galti hain agar banks haath khol ke aankh band kar ke paise baante to? Mallya ka saara paisa aa chuka hain. Modi ka Ambani ke rehte nahi aa sakta. And inse bade bade defaulters hain system me which you don't know and probably won't know.
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I am a huge fan of Vijay Mallya and his products btw. Visionary. Is a great man too.
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Jin se baat kiye ho unki post pata karna. Private me saare VP ya below honge and PSBs me saare CMs AGMs ya below honge.
Unke levels me they don't even know what's placed to the board or budget committees. And userbase increase isn't for all banks btw. It's lopsided. Driven by those who were on a massive acquisition phase. Pvt. They will all scale back now. Not because of 5%. But because kaam ho gaya and ratio demand it now. Ab PSBs khelenge ye gane and 5-10% won't matter. Find out average balance costs. Find out average balance pe how much we can lend and uska yield. Cost of Funds. Yield on Advances. Yield on SLR. NIM. These things alongside what I have mentioned above dictate customer acquisition and marketing budgets. Not 5-10% people using vouchers.
HDFC me poochna ki kitne percent log Smartbuy use karte hain. You will be shocked. I know people who have had LTF Infinia since launch and never used Smartbuy. Always redeem on card and woh bhi kabhi kabhi bhool jaate hain.
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