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.)

 

[CardTox]

Bhai log don't cut the Chicken that lays golden eggs at one go.dont abuse the system and u have nothing to worry .this advice is not limited to cc but everything else in life

Will keep in mind the point post party!

 

[Deleted member 9785]

Who else got notice on the forum?

 

[Pr@k]

Who else got notice on the forum?

Notice for BharatNXT or other issues as well?

can paying TDS via Magnus get flagged as business expense? not via any site but directly on IT website?

 

[CardTox]

I didn't get any notice so far, continuously for 3 months, my bill was generated for more than 60k, while my limit is 5l.

 

[ishanmontella]

It actually depends upon 2 factors:
1. from where (which merchant) you are purchasing
2. what you are purchasing.

Note : Card issuing banks dont get a copy of the GST invoice of items you purchased. so no connection in whether gst number is mentioned on invoice or not.

Example 1 :- you purchase 4-5 ACs (just a guess, actualities are decided upon by bank), that most probably cant be for personal usage.
Example 2 :- you purchase 4-5 Mobile phones in a short interval of time, that most probably cant be for personal usage, high chances that bank will think you are purchasing and selling phones.
Example 3 :- you paid to a digital marketing agency MCC merchant, its a business purchase.
Example 4 :- you frequently pay for travel and hotels, guess what, its a ........
Example 5 :- you have huge amount of maintenance and repair transactions. its a ..........
Example 6 :- you pay to a merchant MCC that comes under office supplies & equipment, business software category. its a ..........

I hope my answer is useful...

Could purchasing ASV through Gyftr, and adding the shopping voucher to Amazon business account be problematic, if I plan to do it occasionally, for low values?

 

[Sharjeelshaikh]

Could purchasing ASV through Gyftr, and adding the shopping voucher to Amazon business account be problematic, if I plan to do it occasionally, for low values?

They have time up with amazaon croma etc they can surely cross check where it was redeem or whose name...also the amount matters if it's worth thousands every month it's common sense it's not personal use

 

[CardsHoarder]

Paying advance tax by salaried person due to booked profits from stock market trading can be considered as personal use or business use?

I find it difficult to categorise it because while filing income tax return, ITR 3 to be used if having income from business / intraday trading or futures or options trading. So it can be contested that advance tax was paid for trading as a business so can be categorised as business use?
At the same time it can also be contested that advance tax was paid by a person and not for a company/institution so it is still considered as personal use.

Whats your opinion?

 

[AllSeeker]

Paying advance tax by salaried person due to booked profits from stock market trading can be considered as personal use or business use?

I find it difficult to categorise it because while filing income tax return, ITR 3 to be used if having income from business / intraday trading or futures or options trading. So it can be contested that advance tax was paid for trading as a business so can be categorised as business use?
At the same time it can also be contested that advance tax was paid by a person and not for a company/institution so it is still considered as personal use.

Whats your opinion?

Tax paid by individual person is personal use, however you are also not completely wrong to consider other side, its possible that some bank may review this in a case by case manner.

99% you can rest assured that this is personal use. Also, individual trading stocks/F&O is not really considered a business, no matter what trading guru's may have us believed. Earnings are taxed yes, but they are still individual earnings tax, not really GST. lol

 

[hs23]

I have a proprietorship. Can Axis Atlas card be used for business expenses such as shipping and marketing spends or the card will get blocked?

Any other card recommendation?

SBI CB card is good for 1L PM spends?

 

[ARV]

I have a proprietorship. Can Axis Atlas card be used for business expenses such as shipping and marketing spends or the card will get blocked?

Any other card recommendation?

SBI CB card is good for 1L PM spends?

Take business credit card, most banks offer them. If you use personal cards for business transactions banks will surly block. Business credit cards have less rewards but you need not worry of the cards getting blocked

 

[amitr29]

Have expenses for my house that will run into 25-30 lacs. Will use Bharatnxt as vendor not using POS or gateway. I will have invoices in my personal name. For eg. 8 Ac's worth 5 lacs, Modular kitchen 12 lacs, Furniture & Furnishings worth 13-14 lacs etc.

Will it be flagged? Will sending them invoices be enough to remove card blocking

 

[dinersblackpro]

I had a similar story. expenses of 10 odd lakhs on house repair. used bharatnxt. was blocked. it took a frustratingly long back and forth to get the account unblocked. I wouldnt do it again. Even now, I have expenses of 10-20 lakhs pending but not using bharatnxt. do not trust axis at all

 

[Harry1]

I had a similar story. expenses of 10 odd lakhs on house repair. used bharatnxt. was blocked. it took a frustratingly long back and forth to get the account unblocked. I wouldnt do it again. Even now, I have expenses of 10-20 lakhs pending but not using bharatnxt. do not trust axis at all

Now what's the use. Utility is excluded.

 

[pradeepG]

Have expenses for my house that will run into 25-30 lacs. Will use Bharatnxt as vendor not using POS or gateway. I will have invoices in my personal name. For eg. 8 Ac's worth 5 lacs, Modular kitchen 12 lacs, Furniture & Furnishings worth 13-14 lacs etc.

Will it be flagged? Will sending them invoices be enough to remove card blocking

better divide and put it on different bank cards via the vendor payment app

 

[nandhakumar]

I had a similar story. expenses of 10 odd lakhs on house repair. used bharatnxt. was blocked. it took a frustratingly long back and forth to get the account unblocked. I wouldnt do it again. Even now, I have expenses of 10-20 lakhs pending but not using bharatnxt. do not trust axis at all

How u justify the transaction.i am also received notice and only reward redemption blocked.card is still active and working.

 

[nandhakumar]

Hi all.
If anyone slove this notice issues.

 

[RAMESH BABU N]

I fully support this step by Axis. I wish all major banks - specially the private banks - also implement such measures on an urgent basis.

Let personal cards be purely personal. Any misuse - deliberately planned or allowed - should be penalized - even via credit rating agencies.

In my case, I used all my cards n bank accounts purely for my personal use. Do not purchase anything for others. And, I have an xls file containing all my Card entries.

In the good olden days, we never had reward points, cash backs, or discounts for CC usage. The purpose was - CC as a replacement for cash. Nothing more. Today, CC has become a tool to do so many unwanted, unintended n unlawful uses. CC issuers are bending backwards to issue cards - even premium n super premium cards - to everyone - often ignoring the total limits on their existing dozens of cards - resulting in temptation to put them into misuse.

It is high time that financial discipline is brought back to the CC sector.

 

[RAMESH BABU N]

The problem is due to the fact that

HARDLY anyone is READING the T&Cs (aka MITC nowadays).

In an an economy which is driven mostly by digital/electronic Trxns, it is very easy to cross check n find loopholes. Finding them is easy - but plugging them takes more time. But, surely it will be done faster than we presume.

When the systems n procedures are getting sophisticated, it is better n safer for users - like you N me - to get updated on the recent developments n more so about the various regulatory measures.

This can happen ONLY WHEN WE READ THE FINE PRINT. Before, we press the I AGREE button two or more times.

And, not just reading, but be prepared for any unexpected notices or call-for-explanations.

 

[Tirajat]

Using a card for a family member is permissible under T&C or shall I be worried. Paid stamp duty using Vistara CC for a relative who purchased a house recently.

 

[RAMESH BABU N]

Using a card for a family member is permissible under T&C or shall I be worried. Paid stamp duty using Vistara CC for a relative who purchased a house recently.

One-off cases are not a problem. Nor, they invite any trouble or headache.

Intentionally misusing n abusing - and getting monetary benefits in the process - is something different.

Better to be informed, be safe n be ready.