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IDFC Mayura: Hidden Utility Charges on "Zero Forex" Card for International txns

L

lazyman

TF Buzz
Recently, I made an international purchase of about 50,000 INR in USD on an e-commerce website using my IDFC First Bank Mayura credit card. I chose this card specifically for its advertised zero forex fees. However, I was shocked to discover an unexpected 1% utility charge and 99 INR IGST on my statement.The Surprise Charges
  • 1% utility charge
  • 99 INR IGST
  • No SMS or email notification about these charges
IDFC's Response
  • Reversed the charges as a one-time gesture
  • Explained it's their policy to charge for certain MCC codes
  • Suggested checking with merchants before transactions
The Frustration
  1. Lack of transparency: No prior information about these potential charges
  2. Expectation vs. Reality: "Zero forex" doesn't always mean zero additional fees
  3. Unrealistic expectation: How can a customer know MCC codes?
  4. Poor communication: No immediate notification about the extra charges
Lesson Learned
Be cautious when using IDFC Mayura as a zero forex card or any other idfc first bank zero forex cards. You might end up paying unexpected utility surcharge fees depending on the merchant category code (MCC).Remember, what's advertised as "zero forex" may not always mean zero additional charges. Always double-check with your merchant about mcc for international transactions, especially for large purchases.
 
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Already explained much hate towards such zero forex cards:

bing1309

Thread 'Avoid IDFC mayura credit card (rent surcharge on forex)'

Dear members.

It's such a shame that idfc adds rent surcharge for almost any high level transactions for a forex spend and there classification in forex for reward rates are much worse in 1x 3x 5x 10x keep in mind if the card is such premium also (which they call themselves) for an forex spends they charge rent surcharge flat 249 plus gst. where gst is 44rs extra is a big mess where idfc has gone into. And on top of that all hotel etc are into real-estate mcc categories and you can't get any rewards in high level transactions it's a joke how idfc has classified there card and the refund...
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TBH, the Bank is not at fault here.
You simply learned a lesson the hard way!!

For me, I learned it in those time when ACE used to give 2% cashback. First time when I did an international transaction on that card, I did not receive any CB. On inquiring with the bank, they told me that the transastion was tagged as utility spend, hence NO cb.
During that time there was no such thing as 1% surchage for utility transactions too.

Same way, I have never received cashbaks for international spends on SBI Cashback card.
These transactions always get tagged with weried MCC codes which are excluded for cashbacks such as rents, utility or what not!!

And then came along the trend of 1% surchage on utility/rent/etc transactions above the set threshold.

Most people welcomed this move, stating that no one will have such high utility spend unless they are spending for business purpose.
But they forget not all transations that get tagged as utility are Electricity bill payments, phone recharges, etc.
Even genuine non-utility transactions might get tagged as such and it will attract fee!

This is one of the biggest roadblock.
We never know what the international merchant reporting MCC is!

IDFC's utility threshold is 20000 per billing cycle, and since your merchant sent a utility MCC, it crossed the threshold and you were charged the fee.

That's the reason, I now make small payments first and ask what the transaction is getting tagged as from the bank before proceeding to making high amount international transactions, particularly if it's going to cross the threshold.

So there is no point in bashing IDFC card, the card does what it is advertised as. If you had done this payment using any card, say AXIS, which has a utility threshold of 25K per billing cycle, they too could have charged you that 1% along with Forex as well.

At least now you are aware that you have to stay vigilant when it comes to international payments.
 
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cyberlocker said:
TBH, the Bank is not at fault here.
You simply learned a lesson the hard way!!

For me, I learned it in those time when ACE used to give 2% cashback. First time when I did an international transaction on that card, I did not receive any CB. On inquiring with the bank, they told me that the transastion was tagged as utility spend, hence NO cb.
During that time there was no such thing as 1% surchage for utility transactions too.

Same way, I have never received cashbaks for international spends on SBI Cashback card.
These transactions always get tagged with weried MCC codes which are excluded for cashbacks such as rents, utility or what not!!

And then came along the trend of 1% surchage on utility/rent/etc transactions above the set threshold.

Most people welcomed this move, stating that no one will have such high utility spend unless they are spending for business purpose.
But they forget not all transations that get tagged as utility are Electricity bill payments, phone recharges, etc.
Even genuine non-utility transactions might get tagged as such and it will attract fee!

This is one of the biggest roadblock.
We never know what the international merchant reporting MCC is!

IDFC's utility threshold is 20000 per billing cycle, and since your merchant sent a utility MCC, it crossed the threshold and you were charged the fee.

That's the reason, I now make small payments first and ask what the transaction is getting tagged as from the bank before proceeding to making high amount international transactions, particularly if it's going to cross the threshold.

So there is no point in bashing IDFC card, the card does what it is advertised as. If you had done this payment using any card, say AXIS, which has a utility threshold of 25K per billing cycle, they too could have charged you that 1% along with Forex as well.

At least now you are aware that you have to stay vigilant when it comes to international payments.
Click to expand...
MCC of others/ non categorized are also for rent. this is bank fault not visa/ master. in other banks "others" are just "others". in idfc that is not the case, if an mcc is made on payment of hotel it goes to utility rather than hotel, its again bank fault for not putting mcc is exclusion lists by giving excuses, in my case any transactions goes over 20,000inr settlement takes time and then converted to others or utility and same transactions made from other bank its giving rewards and also no surcharge. and these surcharges etc comes when payment is settled and this surcharge is added by bank rather than visa master hence bank has to be more watch out and re categories mcc and add in exclusion list
 
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bing1309 said:
MCC of others/ non categorized are also for rent. this is bank fault not visa/ master. in other banks "others" are just "others". in idfc that is not the case, if an mcc is made on payment of hotel it goes to utility rather than hotel, its again bank fault for not putting mcc is exclusion lists by giving excuses, in my case any transactions goes over 20,000inr settlement takes time and then converted to others or utility and same transactions made from other bank its giving rewards and also no surcharge. and these surcharges etc comes when payment is settled and this surcharge is added by bank rather than visa master hence bank has to be more watch out and re categories mcc and add in exclusion list
Click to expand...
That's true! It's the bank's responsibility how they handle MCC, but they have rather found an easy way out and a very lazy solution.
And I have seen this lazy attitude with other banks as well not just IDFC.
I have not had any experience with Hotel transactions till now.
But all my online international transactions have been categorized as utility by both AXIS and SBI Card and based on the experience stated on this post, I can sense IDFC does the same.
Can't really go around fighting with each and every bank.
 
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The MCC issue applies universally to all credit cards, regardless of the issuing bank or whether they are used for domestic or international transactions.

Last month, I used my Mayura credit card for nearly ₹1 lakh in spending across 5–6 international merchants in different currencies and did not encounter any additional utility charges in my statement.
 
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anonymuos said:
I am curious where the forex txn was done internationally to get Utility MCC? Which nalayak merchant's ecommerce website is giving Utility MCC for shopping?
Click to expand...
in other countries utility, real estate etc doesn't matter for them and their country banks or in fact, foreign banks have not put any such restrictions its our Indian banks do such kind of shady practices, this is the reality (in the name of surcharge, convenience fee and what not we are taken for granted) anyways time will tell (for India this is just a beginning and more charges yet to come where its best to live without a credit card itself)
 
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cyberlocker said:
TBH, the Bank is not at fault here.
You simply learned a lesson the hard way!!

For me, I learned it in those time when ACE used to give 2% cashback. First time when I did an international transaction on that card, I did not receive any CB. On inquiring with the bank, they told me that the transastion was tagged as utility spend, hence NO cb.
During that time there was no such thing as 1% surchage for utility transactions too.

Same way, I have never received cashbaks for international spends on SBI Cashback card.
These transactions always get tagged with weried MCC codes which are excluded for cashbacks such as rents, utility or what not!!

And then came along the trend of 1% surchage on utility/rent/etc transactions above the set threshold.

Most people welcomed this move, stating that no one will have such high utility spend unless they are spending for business purpose.
But they forget not all transations that get tagged as utility are Electricity bill payments, phone recharges, etc.
Even genuine non-utility transactions might get tagged as such and it will attract fee!

This is one of the biggest roadblock.
We never know what the international merchant reporting MCC is!

IDFC's utility threshold is 20000 per billing cycle, and since your merchant sent a utility MCC, it crossed the threshold and you were charged the fee.

That's the reason, I now make small payments first and ask what the transaction is getting tagged as from the bank before proceeding to making high amount international transactions, particularly if it's going to cross the threshold.

So there is no point in bashing IDFC card, the card does what it is advertised as. If you had done this payment using any card, say AXIS, which has a utility threshold of 25K per billing cycle, they too could have charged you that 1% along with Forex as well.

At least now you are aware that you have to stay vigilant when it comes to international payments.
Click to expand...
does these cards ( IDFC Mayura in discussion here ) charge 4-5% extra markup fees for international transactions like the normal cards do ? if not , then isnt it still an advantage there of atleast saving those markup charges thru these cards ?
 
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skyroamer said:
does these cards ( IDFC Mayura in discussion here ) charge 4-5% extra markup fees for international transactions like the normal cards do ? if not , then isnt it still an advantage there of atleast saving those markup charges thru these cards ?
Click to expand...
If 3% is charged also other cards offers better reward rates or cashback in return better than mayura.
 
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anonymuos said:
But do we need to register as a wholesaler to buy from AliBaba and buy in bulk or something? Does it ship to consumers like AliExpress did (since AliExpress was for retail)? I got numerous small value items from AliExpress delivered to India back when it was not banned. It was great.
Click to expand...
Yes it was good till it lasted. Also excellent customer support. Would just refund the amount if product was faulty
 
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