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.)

 

[gabu]

In all likelihood they will filter it.better stop they can easily evaluate that nobody gets 2 lac utility bill.AI picks it easily

He hasn't even started you asking him to stop.

 

[Alex292929]

I can do partial payment from the tata power website via netbanking, and remaining outstanding from the cc
Will there be any problem if I pay 20-25k with ace every month?

 

[Copycat]

I can do partial payment from the tata power website via netbanking, and remaining outstanding from the cc
Will there be any problem if I pay 20-25k with ace every month?

It would depend on how they have configured their system to detect commercial usage. I don't think there are many homes that pay 25K electricity bills per month (if anyone stays in a large joint family in a single house, or if someone is a landlord with many tenants w/o a separate meter, maybe they could give you an idea what is an average value)

 

[amit]

My father owns a manufacturing firm we get electricity bill above 2 lacs every month, If I use my cc to pay that, not every month once in a quarter or once in 6 months, will there be any issue?
currently we are paying it to an agent in cash and he pays for that

I am more concern about the cash handover to an agent, get rid of that.

 

[Copycat]

@Alex292929
Check this out: https://www.technofino.in/community...ank-cc-transfer-for-new-user.7551/post-139041
Not BharatNXT, I'm referring to the SBI Elite Business Card that gives 3.75% on 10 Lakh Utility bills

Something like this is specifically meant for you and you will get rewards too
https://www.sbicard.com/en/personal/credit-cards/business/sbi-card-elite-business.page

You can check business cards from other banks too

 

[Alex292929]

@Alex292929
Check this out: https://www.technofino.in/community...ank-cc-transfer-for-new-user.7551/post-139041
Not BharatNXT, I'm referring to the SBI Elite Business Card that gives 3.75% on 10 Lakh Utility bills

Something like this is specifically meant for you and you will get rewards too
https://www.sbicard.com/en/personal/credit-cards/business/sbi-card-elite-business.page

You can check business cards from other banks too

thanks for the suggestion

 

[hireng]

@TechnoFino do you think buying gift vouchers is rather a safe choice?

 

[Sharjeelshaikh]

Let us not discuss how to plug loopholes I'm sure many bank cc people are on This group who plug them along with axis HDFC too started to issue cancellation notice for usage other than personal

 

[akshayhs]

Same here.

I am more concern about the cash handover to an agent, get rid of that.

Hence my suggestion

 

[Alex292929]

Same here.

Hence my suggestion

Don't worry about that

 

[gurbina]

My father owns a manufacturing firm we get electricity bill above 2 lacs every month, If I use my cc to pay that, not every month once in a quarter or once in 6 months, will there be any issue?

If the MCC code is correctly specified and with those amounts, it's very easy for the banks to spot it.

 

[TheMentalist]

@TechnoFino do you think buying gift vouchers is rather a safe choice?

it is.. but split the amount between different sites and cards

 

[hireng]

it is.. but split the amount between different sites and cards

well.. mostly gyftr edge seems more appealing

 

[Pravin1156]

@TechnoFino At what time Axis sent the card block message,
#1 At the time of cashback credit two days before the statement generation.
#2 At the time of statement generation

 

[poorna.chandra.akp]

how does bank know its business expense vs personal expense

 

[Alex292929]

how does bank know its business expense vs personal expense

Merchant category codes

 

[ishanmontella]

What if I use the Magnus credit card for buying an air conditioner for my office, and take the GST input on the same. As I am the sole proprietor of my firm, anything which is billed under my name, and has my GST number will be a business expense.

I also travel abroad regularly for work, and I usually take the GST input from the invoice issued by the airlines.

Should I avoid such transactions too while using the Magnus credit card? @TechnoFino

 

[Sharjeelshaikh]

What if I use the Magnus credit card for buying an air conditioner for my office, and take the GST input on the same. As I am the sole proprietor of my firm, anything which is billed under my name, and has my GST number will be a business expense.

I also travel abroad regularly for work, and I usually take the GST input from the invoice issued by the airlines.

Should I avoid such transactions too while using the Magnus credit card? @TechnoFino

Yes ur right if ur taking GST input so it's commercial usage .but for small transaction there shouldn't be issues but it's flagged if done in huge amount and continuos basis

 

[ishanmontella]

Yes ur right if ur taking GST input so it's commercial usage .but for small transaction there shouldn't be issues but it's flagged if done in huge amount and continuos basis

Thanks for your reply. Till now, I have only used MMT or Yatra directly, and added my GST number while booking flights. I hope doing this 3-4 times in a year should not be a problem.

I'm guessing there is no option to add a GST number while booking flights on Traveledge?

 

[ishanmontella]

Also, is there any way to convert the current Magnus credit card into a Business credit card?