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.)

 

[pothi]

Intentionally misusing n abusing - and getting monetary benefits in the process

Golden words. Should've been printed on the welcome letter on every CC.

 

[Tirajat]

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.

Assessing intention is always subjective. I was wondering if T&Cs restrict usage of the card for a family member.

 

[ChurningNoob]

Hello All,

Hope everyone and family members are doing good🙂

Recently i have received notice to submit evidence as i had used card on snapay (AK infopark private limited ). Dont know what evidence should i provide to them, as snapay doesnt provide invoices/any bill. Moreover older transactions cant be traced on snapay app. Help is needed from you guys. Please suggest what to do in this case. Help is appreciated.

Thanks,

Anil

how much did you spend on snapay and from when?

 

[Akshays]

Hello All,

Hope everyone and family members are doing good🙂

Recently i have received notice to submit evidence as i had used card on snapay (AK infopark private limited ). Dont know what evidence should i provide to them, as snapay doesnt provide invoices/any bill. Moreover older transactions cant be traced on snapay app. Help is needed from you guys. Please suggest what to do in this case. Help is appreciated.

Thanks,

Anil

I spent on Snapay too, but only in 1 month that too twice. Seems like you were using it quite frequently. or at least used it consecutively in 3 months.

 

[Deleted member 11974]

Hello All,

Hope everyone and family members are doing good🙂

Recently i have received notice to submit evidence as i had used card on snapay (AK infopark private limited ). Dont know what evidence should i provide to them, as snapay doesnt provide invoices/any bill. Moreover older transactions cant be traced on snapay app. Help is needed from you guys. Please suggest what to do in this case. Help is appreciated.

Thanks,

Anil

what was the purpose of this spend
if it was to a merchants account ask an invoice from him

 

[MangoRush]

Hello All,

Hope everyone and family members are doing good🙂

Recently i have received notice to submit evidence as i had used card on snapay (AK infopark private limited ). Dont know what evidence should i provide to them, as snapay doesnt provide invoices/any bill. Moreover older transactions cant be traced on snapay app. Help is needed from you guys. Please suggest what to do in this case. Help is appreciated.

Thanks,

Anil

Please mention the number of transactions per month and total amount involved.

 

[RishiKiDev]

3 transaction and 3 lacs each month .

That must have flagged the account.

Their algo is strong. You don't have much options.

 

[LJGIBBS]

3 transaction and 3 lacs each month .

What was your frequency ? Like each transaction was of 1Lakh, and you did 3 such transaction each month ? Or it was like multiple small value transactions ? Also have you achieved your 15L milestone ?
You should have mixed your snapay spends with normal spends. Their system must have seen transaction been done on only one merchant, hence flagged the account.

 

[Deleted member 11974]

Basically for transferring money from card to account .

PHIR TO GAYA
violation of fair usage policy

 

[MangoRush]

3 lacs is too much for 1 single card.
what was the credit limit on your card ? and what is the merchant name on the statement ?

 

[Zacobite]

Hello All,

Hope everyone and family members are doing good🙂

Recently i have received notice to submit evidence as i had used card on snapay (AK infopark private limited ). Dont know what evidence should i provide to them, as snapay doesnt provide invoices/any bill. Moreover older transactions cant be traced on snapay app. Help is needed from you guys. Please suggest what to do in this case. Help is appreciated.

Thanks,

Anil

If you have used against fair usage policy then don't get into too much discussion.. just try to explain or else cancel your relationship.. The banks are now very vigilant and hacks on TF are not helping..Cut your losses

 

[SamPtnk]

What is the point and purpose of transferring 9 lacs into your bank account ?
it will show as income & you will have to pay income tax on it also!

Doesn't work like this

Its not income as you have to pay it back

Rotated 8.2L and showed it as loan , no notice so far 😀

 

[drsel]

It was some emergency thats the sole reason I used card to transfer. Morover as far as i know, transferring to bank account from card doesnt count as income right? as i am not making any profit out of it. Correct me if i am wrong.

Paytm Wallet to Bank consider as income or not

paytm wallet to bank consider as your income or not?? I am not accepting money as merchant. I just add money from my self and withdraw it back to my bank account only. still it consider as income??

www.technofino.in

Check this out

 

[ak1423]

Is there any chance of fuel.expenses of 25-30k with small multiple transactions every month gets flagged ?

 

[Predator]

It was some emergency thats the sole reason I used card to transfer. Morover as far as i know, transferring to bank account from card doesnt count as income right? as i am not making any profit out of it. Correct me if i am wrong.

first time I have sympathy for Axis Bank. What you did was pure abuse, nothing else.
You used Atlas, Vistara, and Magnus- All cards have milestone benefits, so the intent was to milk the benefits.
I am sure you have other CCs too and you could have used the Judicious combination of all cards to meet the emergency

 

[Rocky Bhai]

first time I have sympathy for Axis Bank. What you did was pure abuse, nothing else.
You used Atlas, Vistara, and Magnus- All cards have milestone benefits, so the intent was to milk the benefits.
I am sure you have other CCs too and you could have used the Judicious combination of all cards to meet the emergency

Credit card milestones are met only in emergency situations. 😁

 

[Predator]

Credit card milestones are met only in emergency situations. 😁

Aisi Emergency Situations sabhi ki life me aaye...
Business Class Tickets, thousands of miles, Cashback wali emergency

 

[anonymuos]

It was some emergency thats the sole reason I used card to transfer. Morover as far as i know, transferring to bank account from card doesnt count as income right? as i am not making any profit out of it. Correct me if i am wrong.

Technically once it is in your bank account, you start earning savings account interest on it so the bank may think you can trying to profit from credit card

 

[RAMESH BABU N]

Yeah cant do anything ..My bad luck - If they want to close all cards, let them cant worry about much . If cards gets closed then I will be closing my fd, axis burgundy account and also my family accounts . No option other than these right now.

FORGET about closing FDs, SB account other family accounts. Avoid such knee-jerk reactions.

FOCUS on clearing the ITD's Notice n without getting any damage/impact. Contact a good CA (or a Tax Consultant) n handle it professionally.

Those days of Amateurish way of handling ITD related issues are over since 2022. Be careful in your reactions n responses - more so - after getting Notices.

Also remember that not all Notices are dangerous. There are a wide variety of Notices. So, handle them carefully.

 

[RAMESH BABU N]

He has not received any income tax department notice because the income is actually borrowings from his own credit card

Oops.... My mistake.

If ITD is not involved, then - it is very good news. No tension. No problem. And, it is purely between the bank n customer.