While I understand your angst, Sumanta, on certain points you are flat out wrong.
First of all, I have 800 reward points on my IDFC First Bank account. I don’t use the IDFC Bank debit card to pay my credit card bills, and everything I’ve mentioned here is based on the experiences of other members, not my own. So, I don’t have any strong reason to be upset with IDFC First Bank. In fact, my primary bank account is with IDFC First, and I’m quite satisfied with their services. However, that doesn’t mean I won’t question them if I come across something that seems wrong.
A bank has every right to block transactions at a certain merchant if its internal risk assessment mechanisms indicate something suspicious.
Absolutely, if the bank detects any suspicious activity, they should monitor, question the customer, and even block transactions if necessary. But as a general rule, banks usually verify by contacting the customer and then allow future transactions. Remember, Zavo is not illegal, nor are they engaged in anything that warrants being blocked by banks. And this issue is not limited to Zavo, recently, IDFC First Bank has blocked a few other merchants as well. Most importantly, this is not a credit card transaction but a debit card transaction. A bank cannot restrict a customer from using their own money. All this drama seems to have been done just to stop customers from earning reward points. If that was the intention, the bank could have simply excluded the MCC, but instead, they chose other methods, which is not correct.
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
I don’t know why you think I’m being silly, but after reading this, I’m quite sure you’re not fully aware of customers’ rights. In India, a customer can open a bank account with any bank of their choice. Just as a customer cannot dictate terms to a bank, a bank also cannot dictate which apps or platforms a customer is allowed to use.
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
As I mentioned, I personally don’t use IDFC debit cards for such payments. If I were affected, I would definitely escalate the matter to the RBI Ombudsman or even the consumer court. And I strongly suggest that those who are directly affected should take this step, because that’s the only way we’ll get proper resolution.
