IDFC First Bank Debit Card Rewards Mess – Customers Harassed for Bank’s Mistake?

[TechnoFinoTechnoFino is verified member.]

Recently, the IDFC First Bank debit card became a hot topic in the rewards community. The reason? It had one of the most lucrative reward systems in force. Customers quickly discovered new ways to maximize these rewards across different types of payments.
In particular, many in the credit card community began paying lakhs of credit card bills using the IDFC First Bank debit card — earning about 2.5% value back. Crazy, right? Even the bank thought so. Soon, they imposed multiple MCC (merchant category code) restrictions to block rewards for credit card bill payments.
But as the saying goes: if there’s a will, there’s a way. People always find loopholes. That’s where fintech apps entered the scene.

​

Wrong MCC Tagging – A Known Scam​

If you remember, I had previously posted about how wrong MCC tagging is a common scam in India.

• A grocery shop runs a POS machine categorized as a fuel station.
• An online gift voucher platform shows up as a hotel merchant.

These mismatches aren’t “mistakes.” Payment gateway providers verify documents before assigning MCCs, so when this happens, they are 100% responsible. Yet, it’s the customers who suffer the consequences later.

​

The Current Problem​

After IDFC First Bank restricted several MCCs, some fintech apps began offering credit card bill payment via debit cards, using MCCs that weren’t blocked.

• Customers paid lakhs of rupees in credit card bills.
• In return, they earned lakhs worth of reward points.

And now comes the million-dollar question:
Whose fault is this? Customers? Absolutely not.

​

How IDFC Responded​

Instead of admitting the loophole, IDFC First Bank began calling customers and interrogating them:

• “What is the source of your funds?”
• “Are these business transactions?”

At first, these questions sound fine — a bank must ensure savings accounts aren’t misused for business purposes.
But then they went further. They started asking:

• “Why did you use VI, Goodscore, etc. to pay your credit card bills? Why not CRED?”

Really? Now the bank will decide which app I should use to pay my own bills?
It didn’t stop there. They accused customers of exploiting rewards, pointed to their redemption history, and in some cases, froze accounts citing ‘suspicious activity.’ And if you’ve ever dealt with IDFC freezes, you know how tough it is — local branches barely help, and accounts remain frozen for weeks or months.

And they didn’t stop there. They went a step further and even blocked a few merchants. For example, when customers tried paying their credit card bills on Zavo, the transactions failed right after entering the OTP on the payment page. Imagine this — I have my own money in my bank account, but I can’t use it to pay my bill through Zavo. This feels like dictatorship, and I’m honestly surprised that no concerned authority has taken any action till now.

Serious Concerns That Arise​

1. Why is IDFC First Bank forcing customers to use CRED while questioning them for using other legitimate apps like VI or Goodscore?
2. A debit card is linked to our own money. Unless the government has restricted something, we should have full freedom to decide where we spend it. Where does IDFC First Bank get the authority to dictate which apps we can use?
3. How can a bank block certain merchants when they are not illegal? Just because they have to give rewards, they can’t simply block a merchant.

This approach makes no sense. If IDFC doesn’t want rewards to be earned on certain apps, they should:

• Impose more MCC restrictions, or
• Shut down the debit card rewards program altogether.

But what they cannot do is harass customers who are simply using legal apps in India.

​

The Real Issue​

It looks like IDFC First Bank’s debit card product manager made a blunder by offering rewards at an unsustainably high rate. And now, instead of taking accountability, the bank is shifting the blame onto customers.

​

What You Can Do (Solution)​

If you have received such calls or had your account frozen by IDFC First Bank:

• Write to IDFC’s Principal Nodal Officer (PNO) department.
• Ask the same questions raised above.
• Share this thread if needed as reference.
• Demand a clear resolution.

If the bank still doesn’t resolve your issue, escalate further by filing a complaint with the RBI Banking Ombudsman portal.

 

[Adith]

*grabs popcorn* gonna read all comments about how customers are to blame.

 

[imuntitled]

They’ve stooped so low that they’re now blocking debit card transactions at certain merchants. Are they even authorised to do that? @TechnoFino

 

[TechnoFinoTechnoFino is verified member.]

They’ve stooped so low that they’re now blocking debit card transactions at certain merchants. Are they even authorised to do that? @TechnoFino

Absolutely not. Affected customers should file complaint to the rbi

 

[Strange]

Recently, the IDFC First Bank debit card became a hot topic in the rewards community. The reason? It had one of the most lucrative reward systems in force. Customers quickly discovered new ways to maximize these rewards across different types of payments.
In particular, many in the credit card community began paying lakhs of credit card bills using the IDFC First Bank debit card — earning about 2.5% value back. Crazy, right? Even the bank thought so. Soon, they imposed multiple MCC (merchant category code) restrictions to block rewards for credit card bill payments.
But as the saying goes: if there’s a will, there’s a way. People always find loopholes. That’s where fintech apps entered the scene.

​

Wrong MCC Tagging – A Known Scam​

If you remember, I had previously posted about how wrong MCC tagging is a common scam in India.

• A grocery shop runs a POS machine categorized as a fuel station.
• An online gift voucher platform shows up as a hotel merchant.

These mismatches aren’t “mistakes.” Payment gateway providers verify documents before assigning MCCs, so when this happens, they are 100% responsible. Yet, it’s the customers who suffer the consequences later.

​

The Current Problem​

After IDFC First Bank restricted several MCCs, some fintech apps began offering credit card bill payment via debit cards, using MCCs that weren’t blocked.

• Customers paid lakhs of rupees in credit card bills.
• In return, they earned lakhs worth of reward points.

And now comes the million-dollar question:
Whose fault is this? Customers? Absolutely not.

​

How IDFC Responded​

Instead of admitting the loophole, IDFC First Bank began calling customers and interrogating them:

• “What is the source of your funds?”
• “Are these business transactions?”

At first, these questions sound fine — a bank must ensure savings accounts aren’t misused for business purposes.
But then they went further. They started asking:

• “Why did you use VI, Goodscore, etc. to pay your credit card bills? Why not CRED?”

Really? Now the bank will decide which app I should use to pay my own bills?
It didn’t stop there. They accused customers of exploiting rewards, pointed to their redemption history, and in some cases, froze accounts citing ‘suspicious activity.’ And if you’ve ever dealt with IDFC freezes, you know how tough it is — local branches barely help, and accounts remain frozen for weeks or months.

And they didn’t stop there. They went a step further and even blocked a few merchants. For example, when customers tried paying their credit card bills on Zavo, the transactions failed right after entering the OTP on the payment page. Imagine this — I have my own money in my bank account, but I can’t use it to pay my bill through Zavo. This feels like dictatorship, and I’m honestly surprised that no concerned authority has taken any action till now.

Serious Concerns That Arise​

1. Why is IDFC First Bank forcing customers to use CRED while questioning them for using other legitimate apps like VI or Goodscore?
2. A debit card is linked to our own money. Unless the government has restricted something, we should have full freedom to decide where we spend it. Where does IDFC First Bank get the authority to dictate which apps we can use?
3. How can a bank block certain merchants when they are not illegal? Just because they have to give rewards, they can’t simply block a merchant.

This approach makes no sense. If IDFC doesn’t want rewards to be earned on certain apps, they should:

• Impose more MCC restrictions, or
• Shut down the debit card rewards program altogether.

But what they cannot do is harass customers who are simply using legal apps in India.

​

The Real Issue​

It looks like IDFC First Bank’s debit card product manager made a blunder by offering rewards at an unsustainably high rate. And now, instead of taking accountability, the bank is shifting the blame onto customers.

​

What You Can Do (Solution)​

If you have received such calls or had your account frozen by IDFC First Bank:

• Write to IDFC’s Principal Nodal Officer (PNO) department.
• Ask the same questions raised above.
• Share this thread if needed as reference.
• Demand a clear resolution.

If the bank still doesn’t resolve your issue, escalate further by filing a complaint with the RBI Banking Ombudsman portal.

Merchant blocking needs to be reported to the RBI.

 

[SarPanch]

Wondering if anyone from the IDFC Bank is reading these comments and reporting it internally.

 

[RichieRich]

Anyone who received the call should definitely raise it to PNO and then to RBI.

 

[akm07]

Same barrage of questions, and more
They don't even care to actually look into the transactions
Questioned the transaction where I had recieved money from my own salary account
and why I was receiving money from friends and family.

" Why are you receiving this much money from friends and family if you are salaried? "

Conversation ended with " Your account is under review, and may be frozen. You may need to visit branch and submit supporting documents for these transactions "

I have had messier statement with other banks, never faced an issue. It's purely because of the debit card points and they are not even being direct about it

 

[ankitvm]

I couldn’t provide the bills for some offline transactions at restaurants, grocery stores, and a few online purchases. They also questioned why I received money from my family in my account. Since I didn’t have the paper receipts from their POS machines, my account is still blocked.

Recently, the IDFC First Bank debit card became a hot topic in the rewards community. The reason? It had one of the most lucrative reward systems in force. Customers quickly discovered new ways to maximize these rewards across different types of payments.
In particular, many in the credit card community began paying lakhs of credit card bills using the IDFC First Bank debit card — earning about 2.5% value back. Crazy, right? Even the bank thought so. Soon, they imposed multiple MCC (merchant category code) restrictions to block rewards for credit card bill payments.
But as the saying goes: if there’s a will, there’s a way. People always find loopholes. That’s where fintech apps entered the scene.

​

Wrong MCC Tagging – A Known Scam​

If you remember, I had previously posted about how wrong MCC tagging is a common scam in India.

• A grocery shop runs a POS machine categorized as a fuel station.
• An online gift voucher platform shows up as a hotel merchant.

These mismatches aren’t “mistakes.” Payment gateway providers verify documents before assigning MCCs, so when this happens, they are 100% responsible. Yet, it’s the customers who suffer the consequences later.

​

The Current Problem​

After IDFC First Bank restricted several MCCs, some fintech apps began offering credit card bill payment via debit cards, using MCCs that weren’t blocked.

• Customers paid lakhs of rupees in credit card bills.
• In return, they earned lakhs worth of reward points.

And now comes the million-dollar question:
Whose fault is this? Customers? Absolutely not.

​

How IDFC Responded​

Instead of admitting the loophole, IDFC First Bank began calling customers and interrogating them:

• “What is the source of your funds?”
• “Are these business transactions?”

At first, these questions sound fine — a bank must ensure savings accounts aren’t misused for business purposes.
But then they went further. They started asking:

• “Why did you use VI, Goodscore, etc. to pay your credit card bills? Why not CRED?”

Really? Now the bank will decide which app I should use to pay my own bills?
It didn’t stop there. They accused customers of exploiting rewards, pointed to their redemption history, and in some cases, froze accounts citing ‘suspicious activity.’ And if you’ve ever dealt with IDFC freezes, you know how tough it is — local branches barely help, and accounts remain frozen for weeks or months.

And they didn’t stop there. They went a step further and even blocked a few merchants. For example, when customers tried paying their credit card bills on Zavo, the transactions failed right after entering the OTP on the payment page. Imagine this — I have my own money in my bank account, but I can’t use it to pay my bill through Zavo. This feels like dictatorship, and I’m honestly surprised that no concerned authority has taken any action till now.

Serious Concerns That Arise​

1. Why is IDFC First Bank forcing customers to use CRED while questioning them for using other legitimate apps like VI or Goodscore?
2. A debit card is linked to our own money. Unless the government has restricted something, we should have full freedom to decide where we spend it. Where does IDFC First Bank get the authority to dictate which apps we can use?
3. How can a bank block certain merchants when they are not illegal? Just because they have to give rewards, they can’t simply block a merchant.

This approach makes no sense. If IDFC doesn’t want rewards to be earned on certain apps, they should:

• Impose more MCC restrictions, or
• Shut down the debit card rewards program altogether.

But what they cannot do is harass customers who are simply using legal apps in India.

​

The Real Issue​

It looks like IDFC First Bank’s debit card product manager made a blunder by offering rewards at an unsustainably high rate. And now, instead of taking accountability, the bank is shifting the blame onto customers.

​

What You Can Do (Solution)​

If you have received such calls or had your account frozen by IDFC First Bank:

• Write to IDFC’s Principal Nodal Officer (PNO) department.
• Ask the same questions raised above.
• Share this thread if needed as reference.
• Demand a clear resolution.

If the bank still doesn’t resolve your issue, escalate further by filing a complaint with the RBI Banking Ombudsman portal.

 

[Copycat]

And they didn’t stop there. They went a step further and even blocked a few merchants. For example, when customers tried paying their credit card bills on Zavo, the transactions failed right after entering the OTP on the payment page. Imagine this — I have my own money in my bank account, but I can’t use it to pay my bill through Zavo. This feels like dictatorship, and I’m honestly surprised that no concerned authority has taken any action till now.

While I understand your angst, Sumanta, on certain points you are flat out wrong. A bank has every right to block transactions at a certain merchant if its internal risk assessment mechanisms indicate something suspicious. I did check the Zavo reviews on PlayStore, and while I can see 4.7 stars a very simple scan through the reviews will reveal something. I don't work for a bank, but I work in an industry that banks use a lot. And I'm more than 90% certain, the risk modelling team at the bank, with their automated systems, will have picked up what took me less than 5 minutes in a manual scan. Go and check it yourself.

Your next point is a bit silly. Did someone force you to keep your money in IDFC? If you don't like the fact that they are blocking Zavo, take your money elsewhere and use Zavo all you want. We're still a free country the last time I checked. No one is forcing you to use IDFC First bank. As a customer, you cannot dictate terms to the bank, particularly when it has the fullest backing of the RBI as far as risk mechanisms are concerned

And if you really believe that the bank is wrong on this point, why haven't you filed a complaint with the ombudsman yet? If you have already, do post it, please, and keep us updated about the progress

These mismatches aren’t “mistakes.” Payment gateway providers verify documents before assigning MCCs, so when this happens, they are 100% responsible. Yet, it’s the customers who suffer the consequences later.

Another silly argument. Customers use these apps, after knowing that the MCC is wrong, and that the bank can take back rewards. So isn't the customer at fault here when the customer made the decision to play with fire? Are if you're about to argue that customers don't know the MCC is wrong, then I think you really don't know what's going on in the forum run by you

 

[thepocof1]

Recently, the IDFC First Bank debit card became a hot topic in the rewards community. The reason? It had one of the most lucrative reward systems in force. Customers quickly discovered new ways to maximize these rewards across different types of payments.
In particular, many in the credit card community began paying lakhs of credit card bills using the IDFC First Bank debit card — earning about 2.5% value back. Crazy, right? Even the bank thought so. Soon, they imposed multiple MCC (merchant category code) restrictions to block rewards for credit card bill payments.
But as the saying goes: if there’s a will, there’s a way. People always find loopholes. That’s where fintech apps entered the scene.

​

Wrong MCC Tagging – A Known Scam​

If you remember, I had previously posted about how wrong MCC tagging is a common scam in India.

• A grocery shop runs a POS machine categorized as a fuel station.
• An online gift voucher platform shows up as a hotel merchant.

These mismatches aren’t “mistakes.” Payment gateway providers verify documents before assigning MCCs, so when this happens, they are 100% responsible. Yet, it’s the customers who suffer the consequences later.

​

The Current Problem​

After IDFC First Bank restricted several MCCs, some fintech apps began offering credit card bill payment via debit cards, using MCCs that weren’t blocked.

• Customers paid lakhs of rupees in credit card bills.
• In return, they earned lakhs worth of reward points.

And now comes the million-dollar question:
Whose fault is this? Customers? Absolutely not.

​

How IDFC Responded​

Instead of admitting the loophole, IDFC First Bank began calling customers and interrogating them:

• “What is the source of your funds?”
• “Are these business transactions?”

At first, these questions sound fine — a bank must ensure savings accounts aren’t misused for business purposes.
But then they went further. They started asking:

• “Why did you use VI, Goodscore, etc. to pay your credit card bills? Why not CRED?”

Really? Now the bank will decide which app I should use to pay my own bills?
It didn’t stop there. They accused customers of exploiting rewards, pointed to their redemption history, and in some cases, froze accounts citing ‘suspicious activity.’ And if you’ve ever dealt with IDFC freezes, you know how tough it is — local branches barely help, and accounts remain frozen for weeks or months.

And they didn’t stop there. They went a step further and even blocked a few merchants. For example, when customers tried paying their credit card bills on Zavo, the transactions failed right after entering the OTP on the payment page. Imagine this — I have my own money in my bank account, but I can’t use it to pay my bill through Zavo. This feels like dictatorship, and I’m honestly surprised that no concerned authority has taken any action till now.

Serious Concerns That Arise​

1. Why is IDFC First Bank forcing customers to use CRED while questioning them for using other legitimate apps like VI or Goodscore?
2. A debit card is linked to our own money. Unless the government has restricted something, we should have full freedom to decide where we spend it. Where does IDFC First Bank get the authority to dictate which apps we can use?
3. How can a bank block certain merchants when they are not illegal? Just because they have to give rewards, they can’t simply block a merchant.

This approach makes no sense. If IDFC doesn’t want rewards to be earned on certain apps, they should:

• Impose more MCC restrictions, or
• Shut down the debit card rewards program altogether.

But what they cannot do is harass customers who are simply using legal apps in India.

​

The Real Issue​

It looks like IDFC First Bank’s debit card product manager made a blunder by offering rewards at an unsustainably high rate. And now, instead of taking accountability, the bank is shifting the blame onto customers.

​

What You Can Do (Solution)​

If you have received such calls or had your account frozen by IDFC First Bank:

• Write to IDFC’s Principal Nodal Officer (PNO) department.
• Ask the same questions raised above.
• Share this thread if needed as reference.
• Demand a clear resolution.

If the bank still doesn’t resolve your issue, escalate further by filing a complaint with the RBI Banking Ombudsman portal.

Koi nya Loophole aaya kya? Is month mai nhi loot paya🥲🥲🥲

 

[Ram1]

I couldn’t provide the bills for some offline transactions at restaurants, grocery stores, and a few online purchases. They also questioned why I received money from my family in my account. Since I didn’t have the paper receipts from their POS machines, my account is still blocked.

When is ur account blocked?

 

[msankadi]

I couldn’t provide the bills for some offline transactions at restaurants, grocery stores, and a few online purchases. They also questioned why I received money from my family in my account. Since I didn’t have the paper receipts from their POS machines, my account is still blocked.

Just tell them to not bother close the account and refund your money or they are not even allowing that option?

 

[msankadi]

While I understand your angst, Sumanta, on certain points you are flat out wrong. A bank has every right to block transactions at a certain merchant if its internal risk assessment mechanisms indicate something suspicious. I did check the Zavo reviews on PlayStore, and while I can see 4.7 stars a very simple scan through the reviews will reveal something. I don't work for a bank, but I work in an industry that banks use a lot. And I'm more than 90% certain, the risk modelling team at the bank, with their automated systems, will have picked up what took me less than 5 minutes in a manual scan. Go and check it yourself.

Your next point is a bit silly. Did someone force you to keep your money in IDFC? If you don't like the fact that they are blocking Zavo, take your money elsewhere and use Zavo all you want. We're still a free country the last time I checked. No one is forcing you to use IDFC First bank. As a customer, you cannot dictate terms to the bank, particularly when it has the fullest backing of the RBI as far as risk mechanisms are concerned

And if you really believe that the bank is wrong on this point, why haven't you filed a complaint with the ombudsman yet? If you have already, do post it, please, and keep us updated about the progress



Another silly argument. Customers use these apps, after knowing that the MCC is wrong, and that the bank can take back rewards. So isn't the customer at fault here when the customer made the decision to play with fire? Are if you're about to argue that customers don't know the MCC is wrong, then I think you really don't know what's going on in the forum run by you

IDFC employee spotted?

If the burden for everything lies with the customers banks dont need to spend crores that they show in their balance sheets on compliance.. tomorrow they can just go and forward the RBI AML queries to the customer.

90-99% of the customers dont even know what MCC is - This is a classic case of generalizing what you see on a forum with just thousands of members and assuming all of customer base is like that

 

[Copycat]

IDFC employee spotted?

Already told you. I don't work for a bank. But I've got a nauseating headache right now & have tonnes of work that I can't do because of the headache. So till the headache subsides, I thought I'd come online and pick a fight with someone. And Sumanta's comments were just too inviting to pass up. Plus, I'm really upset that he's suggesting that IDFC close the reward program. I've used it, legitimately, and I love it

90-99% of the customers dont even know what MCC is - This is a classic case of generalizing what you see on a forum with just thousands of members and assuming all of customer base is like that

90-99% of customers don't use apps like Zavo to pay their bills. They use more mainstream alternatives. It's mostly the people from forums like this who want to play with fire. BTW, I'm including myself with the rest of you. When I feel the risk is justified, I play with fire too (otherwise I wouldn't be a frequent visitor to this forum)

 

[2025]

*grabs popcorn* gonna read all comments about how customers are to blame.

🤣🤣🤣 Bro, lets make it more interesting?

So, we should also look at,
(1) How customers not to be blamed.

And, (2) How to blame the bank after they stopped giving free money. Not till the time they were giving it.

Thinking what if bank ask to return the rewards that got credited due to failed/ refunded transactions or through issuance of multiple DCs.

 

[Centurion_wala]

Shut down the debit card rewards program altogether.

At this point, it seems like a better option.

Oyy IDFC ke employee, ye padhle 🙄

 

[Dr.AMAN]

Looks like this thread is going to be an interesting read with my evening cup of coffee. Slowly I m drifting away from Instagram/FB/X and using TF for all the online entertainment and knowledge😅

 

[AllThatStuff]

Now that the cat is out bag...grab your popcorn & enjoy the comments !! 😁

 

[hellowo₹ld]

• Aren't banks supposed to monitor transactions and if observed unusual high spends on a particular app/website, won't they supposed to re-confirm to avoid risk management and prevent money laundering?
  • If someone suddenly routes lakhs of rupees in credit card payments through lesser-known apps, it is entirely reasonable for the bank to pause and verify. It may be inconvenient, but it’s also what prevents fraudsters from laundering money through the same loopholes.
• And still have to wait when will banks define clear guidelines to use their cards?
  • Showing MCC while doing the transaction, so later they can blame user that u did know and still went for it knowing that it didn't matched ur intended purchase.
  • Clear communication before they're taking any further action (like blocking accounts) to avoid hassle.
  • And maybe accept Bill payments from known apps (which should be approved by bank) along with default govt. apps like that HDFC DC doing (can built their own system)