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.)

 

[pradeepG]

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

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...

 

[Sharjeelshaikh]

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

Nope .it's a personal use card

 

[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...

Thank you for the detailed reply. That’s quite helpful. Cheers.

 

[bonheur]

Does offsetting part of business transactions using gift vouchers come under this purview?

 

[Sharjeelshaikh]

Does offsetting part of business transactions using gift vouchers come under this purview?

In my opinion they may ask vendor like croma Amazon with whome they have time up with regards to invoice in which name of person it was redeemed if it's in some other person name they will cancel the card

 

[bonheur]

In my opinion they may ask vendor like croma Amazon with whome they have time up with regards to invoice in which name of person it was redeemed if it's in some other person name they will cancel the card

But isn't that the very point of gift vouchers - vouchers gifted to be used by someone else!

 

[pradeepG]

In my opinion they may ask vendor like croma Amazon with whome they have time up with regards to invoice in which name of person it was redeemed if it's in some other person name they will cancel the card

no one gives that data in fear of loosing trust of their customer. they are earning more from customers collectively than from the card companies, rather they are paying 1-5% MDR to these companies.i dont see any reason why would they further share these details.

 

[Sharjeelshaikh]

no one gives that data in fear of loosing trust of their customer. they are earning more from customers collectively than from the card companies, rather they are paying 1-5% MDR to these companies.i dont see any reason why would they further share these details.

They may not tell you if the info was shared plus they have the client through gyftr axis so their loyalty would like with axis

 

[Sharjeelshaikh]

But isn't that the very point of gift vouchers - vouchers gifted to be used by someone else!

Small amount it's understandable.big ticket ones are flagged especially if done on continuous basis

 

[neogen]

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...

Not sure if example 4 to be counted as business expense?

 

[moonsmart]

In my case, using a personal credit card for e-commerce ads resulted in a financial query from the credit card company. If the total amount spent in a year is close to 50 lakhs, it's necessary to separate and divide the amount into all credit cards. However, if the amount is between 12-25 lakhs, there shouldn't be any issues. Please note, this advice is for sole proprietors only, not agencies or partnerships. and i always use multiple card and add all my personal expense too and nowadays each would transaction would be 4956 x 10/20/30.

What about using personal cards for expenses that are later reimbursed by the agency or company? I guess corporate employees do this all the time.

 

[vaibhav111vaibhav111 is verified member.]

What about using personal cards for expenses that are later reimbursed by the agency or company? I guess corporate employees do this all the time.

If that the case it would be personal expense like flight ticket, booking at hotel not business transaction cause that doesn’t make a much money for cc issuer vs personal spend.

 

[moonsmart]

If that the case it would be personal expense like flight ticket, booking at hotel not business transaction cause that doesn’t make a much money for cc issuer vs personal spend.

Yes, B2B MCCs would be easily flagged and considered commercial usage but travel spends would be allowed most likely as even reimbursement from companies aren’t taxed as income. That’s how a lot of business owners buy electronics like laptops using personal cards and getting reimbursement along with input tax by getting GST invoices.

 

[ishanmontella]

But isn't that the very point of gift vouchers - vouchers gifted to be used by someone else!

Exactly!

 

[Sharjeelshaikh]

Exactly!

Here gift voucher is basically 5x 10 x ka game so axis know it's for points accumulation.the very t&c is card issuance specifically states personal use

 

[ishanmontella]

Here gift voucher is basically 5x 10 x ka game so axis know it's for points accumulation.the very t&c is card issuance specifically states personal use

Yes, so gifting someone close is indeed a personal use. Not a business use.

 

[Sharjeelshaikh]

Yes, so gifting someone close is indeed a personal use. Not a business use.

Like i said if it's big ticket purchase and increase frequency they won't even give ua chance to explain.

 

[CardTox]

I have used my IOCL rupay cc on gpay and payzpp for paying out other cc, may i get the notice for this use? the last bill was 66k.

 

[Sharjeelshaikh]

I have used my IOCL rupay cc on gpay and payzpp for paying out other cc, may i get the notice for this use? the last bill was 66k.

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

 

[AllSeeker]

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

Honestly some ppl are too obsessed with social media following that they post address of chicken on web and then next day they act surprised if the chicken is missing.

Unfortunately, India's new "educated" generation lacks common sense.