Is it considered negatively by making Wallet Reloads or Rent payments via Credit Cards?

[AsB]

I am wondering, if while analysing the spend behavior by Credit Card issuers, if it is considered negatively, if a Credit Card is used for Wallet reloads?
I normally use such thing, to make payments faster, like adding money to PayTM via Ola or Uber to instantly make payments and all.

Does this kind of spending (Wallet Reloads or Rent Payments) affect the Credit Limit enhancement or Card upgrade offers?

 

[satviksehgal]

It is nothing but hypocrisy of the banks. They do still make money via MDR on ALL TRANSACTIONS. Such exclusions are mere greed at their end to squeeze in more profit by not giving reward points on such transactions.

 

[Chaitanya-a]

I normally use such thing, to make payments faster, like adding money to PayTM via Ola or Uber to instantly make payments and all.

Don't you face cancellation in OLA & Uber because of online payment? I tried doing that but except airport pickups, none of the driver accepted online payment for city rides.

 

[ltf4ever]

I am wondering, if while analysing the spend behavior by Credit Card issuers, if it is considered negatively, if a Credit Card is used for Wallet reloads?
I normally use such thing, to make payments faster, like adding money to PayTM via Ola or Uber to instantly make payments and all.

Does this kind of spending (Wallet Reloads or Rent Payments) affect the Credit Limit enhancement or Card upgrade offers?

in addition to what @satviksehgal said.

if you were a low spender and started spending more on their credit cards due to rent and wallet loads, they will be happy and give you offers. because ultimately they will still be earning through those transactions.

but if they see that you are spending only for reward points, banks will stop giving you offers. they will come to know that they need not do expense (in the form of reward points) on your profile in order to get you spend more.

so don't worry much about it, just keep spending as you normally would and don't fall in their trap by forcing your spends. nothing illegal in loading wallets and rent using credit cards.

 

[gurbina]

I am wondering, if while analysing the spend behavior by Credit Card issuers, if it is considered negatively, if a Credit Card is used for Wallet reloads?
I normally use such thing, to make payments faster, like adding money to PayTM via Ola or Uber to instantly make payments and all.

Does this kind of spending (Wallet Reloads or Rent Payments) affect the Credit Limit enhancement or Card upgrade offers?

None, zero. As long as you pay back on time, they don't care one dime about it.

They would only care if:

• It is a risky merchant with high chargeback rates or flagged as risky/fraudulent. In those cases transaction might get blocked or you won't be able to do it at all, in other cases you'll need to call the bank to allow the transaction but you might be liable in case of fraud even if insured.
• If used for explicitly forbidden activities or breaking the law. RBI might have some weird rules on how can you use certain financial instruments, transfer money around or anything related to foreign investment/currencies/remittances. Good examples I'm familiar with in other countries is restricted or forbidden use of credit cards for gambling, crypto, foreign remittances, etc. It's just to give you an idea.
• Whenever against terms or conditions, or whatever other legal documents are there.
• Where used for business when explicitly forbidden for that. This is a tricky one because usually it's the rewards programs but not the actual card usage but haven't dug into that and I'm not familiar with these conditions/cases.

If you ask because you do it because of the rewards as long as they allow it won't be an issue.

And where you do so to get rewards when you're not supposed to get rewards, quite often they won't care unless you do it excessively. But beware they can still take action but fortunately they can't be bothered with it unless you've costed them dearly.
Be mindful in the worst case scenario they might take action on the benefits you received it which could include annual fee waivers, points, cashbacks and even charging the retail price of the benefits you availed which you weren't meant to receive.

 

[AsB]

Don't you face cancellation in OLA & Uber because of online payment? I tried doing that but except airport pickups, none of the driver accepted online payment for city rides.

Not yet. I get that option from the drivers, but mostly I deny, citing that Ola/Uber is charging extra. Some drivers say that there will not be cancellation charges, but I simply deny it saying “har koi aisa hi bolta hai, but mereko hi charge dena padta hai” and I give 1 star to the driver.

 

[Chaitanya-a]

Not yet. I get that option from the drivers, but mostly I deny, citing that Ola/Uber is charging extra. Some drivers say that there will not be cancellation charges, but I simply deny it saying “har koi aisa hi bolta hai, but mereko hi charge dena padta hai” and I give 1 star to the driver.

They straight away deny/cancel the ride when I say its online payment. Even I'm in Bengaluru but the issue is with each and every driver.

 

[akshayhs]

Don't you face cancellation in OLA & Uber because of online payment? I tried doing that but except airport pickups, none of the driver accepted online payment for city rides.

Not at least for me personally, for Uber in Bangalore. My Millennia card gives 5% CP and Uber is one of the partners. All my rides are booked using online payment and till date I have not experienced ride cancellations using an online payment.

 

[gurbina]

It is nothing but hypocrisy of the banks. They do still make money via MDR on ALL TRANSACTIONS. Such exclusions are mere greed at their end to squeeze in more profit by not giving reward points on such transactions.

They are a business not a charity. Certain high transactions could turn their business upside down if given rewards or uncapped like rent, utilities, business expenses, tax payments, insurance, gold, jewelry, etc.

Even for rich people and business owners with absurd amounts of spends the biggest share of their expenses would be in these categories. It isn't sustainable at all for anyone.

Even some cards like Magnus might be ridiculously expensive for Axis and aren't sustainable. They can't keep these forever unless they're printing money or they've got a lot of indebted users paying the hilarious interest rates they have.

 

[AsB]

They straight away deny/cancel the ride when I say its online payment. Even I'm in Bengaluru but the issue is with each and every driver.

Soon, Ola, uber will find a solution for this

 

[gurbina]

Off-topic but same experience in Ola/Uber in several metros, specially Delhi. They want liquidity and online payments take time to be paid to the drivers. Some actually need cash to survive and others are just... themselves.

What they are doing is against the terms of Ola/Uber and penalized but not enforced, that I'm aware of. And doing so might push away their drivers to the competition.

 

[Chaitanya-a]

Soon, Ola, uber will find a solution for this

According to them, they get late payment from Ola/Uber. This is why they deny online payment.

 

[Chaitanya-a]

Off-topic but same experience in Ola/Uber in several metros, specially Delhi. They want liquidity and online payments take time to be paid to the drivers. Some actually need cash to survive and others are just... themselves.

It is against the terms of Ola/Uber and penalized but not enforced that I'm aware of.

Yes exactly!

 

[AsB]

According to them, they get late payment from Ola/Uber. This is why they deny online payment.

Not likely. They get reduced payment. Zomato and Swiggy also delay in paying restaurants, but that does not stop most restaurants from listing.
The real reason for drivers to play monopoly is that, before, they used to get much more money per ride. Like back before Ola and all, most drivers used to charge around Rs1500/- to ride to the airport (confirmed from several drivers that I normally talk to), but now, even if they are getting more rides and money, they are not getting more money per ride. Also, they are trying to squeeze as much money as they can from Ola and Uber, by getting more rides, and avoiding 25% commission that Ola or Uber charge.

 

[gurbina]

Not likely. They get reduced payment. Zomato and Swiggy also delay in paying restaurants, but that does not stop most restaurants from listing.
The real reason for drivers to play monopoly is that, before, they used to get much more money per ride. Like back before Ola and all, most drivers used to charge around Rs1500/- to ride to the airport (confirmed from several drivers that I normally talk to), but now, even if they are getting more rides and money, they are not getting more money per ride. Also, they are trying to squeeze as much money as they can from Ola and Uber, by getting more rides, and avoiding 25% commission that Ola or Uber charge.

Doesn't commision also apply to cash rides? They are still getting the customer from them and using their platform.
I was under the impression they still get charged whatever charges they do regardless of payment method. I thought that for cash rides they would just discount those at the time of payment to their drivers.

That's why even some drivers go as far as asking the customer to cancel the ride but still go with them at cheaper rates, at least that is what has happened to me a few times.

 

[AsB]

Doesn't commision also apply to cash rides? They are still getting the customer from them and using their platform.
I was under the impression they still get charged whatever charges they do regardless of payment method. I thought that for cash rides they would just discount those at the time of payment to their drivers.

That's why even some drivers go as far as asking the customer to cancel the ride but still go with them at cheaper rates, at least that is what has happened to me a few times.

If you pay via cash, they normally cancel the ride so they dont have to pay commission.
If they havent, they still have to pay commission, as per Ola/Uber agreement