Axis Bank Issuing Cancellation Notices for Using Personal Credit Cards for Business Expenses

[TechnoFinoTechnoFino is verified member.]

Dear TFC members,

I would like to inform you that Axis Bank has begun sending commercial use notifications to their HNI cardholders as well. As you may already know, Axis Bank has a history of cancelling their customers' cashback cards such as Axis Ace and Axis Flipkart Card if they are used for business purposes.

Recently, Axis Bank has sent suspected commercial use notifications to their HNI cardholders such as Axis Magnus, Axis Reserve, etc. Unfortunately, I have also received a notification from Axis Bank and they are requesting spending justification within the next seven working days.

In case a customer is unable to justify their spending as personal, the bank will close all their credit cards.
During that time frame (Dec 2022 and Jan 2023), all of my spending was personal. I am currently in the process of submitting all the necessary documents to Axis Bank for spending justification.
The primary reason for this post is to advise our members that even if you are using a high-end credit card from a bank, they may still flag your transactions if they are related to business expenses.
If you intend to charge anything other than personal expenses to your personal credit card, please exercise caution.

Edit:- many people are asking for subject line of the email, Here it is- "Commercial Usage on your Axis Bank Credit Card Accounts"

Update - Axis Bank has already sent notifications to more than 200 accounts on March 4, 2023. Now they have sent such a cancellation notice to more than 500 credit card accounts yesterday. and they are also filtering more accounts. (S.N.)

 

[RewardsAlert]

Dear TFC members,

I would like to inform you that Axis Bank has begun sending commercial use notifications to their HNI cardholders as well. As you may already know, Axis Bank has a history of cancelling their customers' cashback cards such as Axis Ace and Axis Flipkart Card if they are used for business purposes.

Recently, Axis Bank has sent suspected commercial use notifications to their HNI cardholders such as Axis Magnus, Axis Reserve, etc. Unfortunately, I have also received a notification from Axis Bank and they are requesting spending justification within the next seven working days.
View attachment 11709
In case a customer is unable to justify their spending as personal, the bank will close all their credit cards.
During that time frame (Dec 2022 and Jan 2023), all of my spending was personal. I am currently in the process of submitting all the necessary documents to Axis Bank for spending justification.
The primary reason for this post is to advise our members that even if you are using a high-end credit card from a bank, they may still flag your transactions if they are related to business expenses.
If you intend to charge anything other than personal expenses to your personal credit card, please exercise caution.

Really appreciate your honesty for bringing out this information in public, especially that this has personally affected you as a customer.
I would like to know the pattern what Axis has identified on your spending basis which they have sent such notice?
1. Have you done similar amount of spending on all 5 credit cards mentioned in the mail?
2. According to my assumption, your high spends would be on Reserve and Magnus, could you confirm
3. Can you give us a ballpark figure or rounded off number as to what was your spend on those two cards or the combined spend?
4. Do you feel any particular/repeated spend on a merchant sent this signal to the bank or was it because of high value trxs
5. Any new/different spend done in these two months- Dec and Jan which was never performed before on your card account?
We all value your opinions @TechnoFino , hence require these clarifications so that we can be much aware about our usage and spending pattern in general

 

[venkateshr]

Dear TFC members,

I would like to inform you that Axis Bank has begun sending commercial use notifications to their HNI cardholders as well. As you may already know, Axis Bank has a history of cancelling their customers' cashback cards such as Axis Ace and Axis Flipkart Card if they are used for business purposes.

Recently, Axis Bank has sent suspected commercial use notifications to their HNI cardholders such as Axis Magnus, Axis Reserve, etc. Unfortunately, I have also received a notification from Axis Bank and they are requesting spending justification within the next seven working days.
View attachment 11709
In case a customer is unable to justify their spending as personal, the bank will close all their credit cards.
During that time frame (Dec 2022 and Jan 2023), all of my spending was personal. I am currently in the process of submitting all the necessary documents to Axis Bank for spending justification.
The primary reason for this post is to advise our members that even if you are using a high-end credit card from a bank, they may still flag your transactions if they are related to business expenses.
If you intend to charge anything other than personal expenses to your personal credit card, please exercise caution.

Thanks for sharing this. Just wanted to understand have they flagged off particular transactions seeking justification or have they flagged off the entire set / all of the transactions done in those months and seeking replies. Request if you can also share in which manner you would be providing the proofs saying it is personal only. For e.g., if you have used it for a utility payment, would you need to share the bill? What about any travel bookings for friends and extended family? This is such a grey area. Any views would be helpful to have. Thanks.

 

[akshayhs]

Thanks for sharing this. Just wanted to understand have they flagged off particular transactions seeking justification or have they flagged off the entire set / all of the transactions done in those months and seeking replies. Request if you can also share in which manner you would be providing the proofs saying it is personal only. For e.g., if you have used it for a utility payment, would you need to share the bill? What about any travel bookings for friends and extended family? This is such a grey area. Any views would be helpful to have. Thanks.

I think depending on the amount involved and the MCC, Axis would already know by now, if it is a business transaction.

 

[dileep]

That's a Yorker ball from axis Bank for many,what type of transactions by swiping r bharatpay

 

[AllSeeker]

Other banks need to do this too. I know for sure that every single electronics goods shop is abusing this, they have dozens of CC's and they take cash payments from customers but swipe their own cc to avail company/merchant discounts and nocost emi discounts in 90 days. All in all, on single transaction these guys are gaining between 5-25% easily. And this is above their legit profit margins.

This is not sustainable. This will ruin the credit card game for end users like us.

 

[akshayhs]

I suspect a lot of people would not be able to justify their spends and their cards will be automatically cancelled especially if the person involved is rotating a lot of funds through BharatNXT or other methods available on this platform. Coming to UPI payments for credit card payments, Axis does not have any major rewarding cards especially on RuPay platform at least as of now.

 

[Avijeet]

I just hope and pray that if the payments are done in card holder's name ... it shouldn't be a red flag ...

 

[AsB]

What if I bought something for my cousin, who does not have a card, but I show his invoice?
I am not ordering several stuff for customers. Just for a few members of family

 

[dileep]

Other banks need to do this too. I know for sure that every single electronics goods shop is abusing this, they have dozens of CC's and they take cash payments from customers but swipe their own cc to avail company/merchant discounts and nocost emi discounts in 90 days. All in all, on single transaction these guys are gaining between 5-25% easily. And this is above their legit profit margins.

This is not sustainable. This will ruin the credit card game for end users like us.

Oh this is the new thing I didn't know

 

[ltf4ever]

does loading a wallet using credit card and transferring that money from wallet to bank considered as a business transaction/fraud?

have the banks specifically mentioned that this is not allowed?

can the banks cancel cards for card-wallet-bank transactions?

 

[thanix]

Fantastic news, good that Axis has started this. This should prevent card abuse and protect genuine card users.

 

[AllSeeker]

Oh this is the new thing I didn't know

Its being going on for years now, there are many forms of scams related to this. Even the ordinary cash machine clerks abuse 1.5-2% flat cashback systems and keep swiping their own cc to do this. However, this is very easy to spot so many got caught early, axis bans for lifetime. Other banks are lazy, they haven't even started taking action.

 

[thanix]

does loading a wallet using credit card and transferring that money from wallet to bank considered as a business transaction/fraud?

have the banks specifically mentioned that this is not allowed?

can the banks cancel cards for card-wallet-bank transactions?

I don't think so. This is not a business transaction but they may decline or block wallet loading if they decide to and can cancel also.

Generally people put business expenses like iPad with Input tax credit and use personal card, they are in soup.

 

[Wealth is my birth right!]

That's a Yorker ball from axis Bank for many,what type of transactions by swiping r bharatpay

BharTnxt u mean?

 

[Wealth is my birth right!]

does loading a wallet using credit card and transferring that money from wallet to bank considered as a business transaction/fraud?

have the banks specifically mentioned that this is not allowed?

can the banks cancel cards for card-wallet-bank transactions?

If it’s true then lot of banks have to close their card business lol
The catch here is magnus like cards which give high rewards axis may check thoroughly since it’s cash expenditures involved for them
Edge rewards delay may be an echo of this activity I think

 

[alphamagnus]

Broadly you are in trouble if you are doing transactions on a business site regularly and they form the bulk of your expenses. One could be paying rent but that would be max 50k per month. If its higher and you produce a receipt with a landlord different from your family surname, you could be safe. Amex also cancels cards if there are such transactions afaik.

 

[taruncbe]

Thanks for sharing. How can they expect one to have all the invoices ? I mean unless it is a high value transaction, I don't retain invoices as it is pointless.

Do you have invoices for all your purchases in this duration?

 

[alphamagnus]

Also there are other pointers. A bank can quite easily get your income levels from several sources. If your credit card bill forms a significant part of your income, then its a red flag. I personally know a person who had his Amex Platinum cancelled which had a million MR points.

 

[Krishna1905]

Also there are other pointers. A bank can quite easily get your income levels from several sources. If your credit card bill forms a significant part of your income, then its a red flag.

Simple, you can easily determine our income through CIBIL. A few days ago, a buddy of mine who works for HDFC provided my CIBIL from their system. I was startled to find many facts, including my yearly salary and other details.