AlgoTrader
TF Ace
Learnt a lesson few days ago while changing my car tyres and sharing for everyone's awareness. My car tyres were worn out, so i decided to change it. When inquired, cost came to 24K (6K for each tyre) and they mentioned they will charge 2.5% additionally for using credit card.
Initially I thought I can use HSBC Live+ card to get 1.5% cashback and will get remaining 1% by paying CC bill through HDFC, making it at least net 0 transaction in terms of rewards.
But then, they said, they will accept CC on UPI, so I went with Yes Bank KIWI Credit card to get 2% on the transaction and it avoid additional cost at the outlet as well. This is where things went south. I didn't get any rewards and followed up with yes bank regarding the same. That is when I found out new things that i haven't considered before - MCC used by these outlets fall under - High Transacting Categories, 5541, Service Stations(with out Ancillary services)
Seems type changing outlets use the MCC 5541, which comes under FUEL Category. So I was hit with lot of unexpected bouncers.
1. Since it is considered as fuel txn, no rewards from KIWI, so there goes my 2%.
2. Since it is considered fuel txn, got 1% as fuel surcharge fee +18% GST on it = 1.2%
3. Since it is considered fuel txn and went above 10K limit set by yes bank, got charged additional 1% as fuel transaction fee +18% GST on it = 1.2%
So in total, paid 2.4% extra for using credit card on UPI and will get 1% back from HDFC DC, so net loss on this txn is 1.4% (336 Rupees) for using Credit Card instead of cash..
Now, the lesson learnt and what I could have done better.
1. Obviously, could have done test transaction using my IDFC CC and checked the MCC before going with full payment, but I thought this is direct transaction and I don't have to worry about such stucc, but I was wrong.
2. Could have done small payment with yes back kiwi first to check whether I am getting 2% rewards, didn't think about it at the moment as I was little busy at work during the whole time.
3. If I have done #2 and it didn't reward me, could have used SBI BPCL OCTANE RUPAY CC through UPI and this 24K txn would have at least helped me to hit next year's fee waiver target.
4. Could have used multiple rupay CCs though UPI to avoid at least the additional fuel transaction charge of 1.2%
Open questions:
1. Will I get fuel surcharge waiver for the fuel surcharge paid? or yes bank kiwi has any limit on the fuel transaction amount when it comes to waiver? Most CCs won't do surcharge waiver for transactions above 5K, so asking.. couldn't find it anywhere in T&C and only thing I could find is max cap of 250 per month for surcharge waiver. I will follow up with yes back after a few days just to be sure.
2. I have 2 fuel cards - SBI BPCL OCTANE RUPAY CC & BOB HPCL Energize. Since this is marked as fuel, would any fuel cards have given full rewards? I doubt it as this is all co-branded cards and won't give rewards for such txn, but who knows?
3. Is there any other cards that would have helped me here? Amex wasn't accepted, so that isn't an option, any other cards that could have came in handy here?
4. Could have simply used cash to avoid all this mess.
Tagging @TechnoFino for reach and more insights, remove the tag if you feel it is unnecessary
Initially I thought I can use HSBC Live+ card to get 1.5% cashback and will get remaining 1% by paying CC bill through HDFC, making it at least net 0 transaction in terms of rewards.
But then, they said, they will accept CC on UPI, so I went with Yes Bank KIWI Credit card to get 2% on the transaction and it avoid additional cost at the outlet as well. This is where things went south. I didn't get any rewards and followed up with yes bank regarding the same. That is when I found out new things that i haven't considered before - MCC used by these outlets fall under - High Transacting Categories, 5541, Service Stations(with out Ancillary services)
Seems type changing outlets use the MCC 5541, which comes under FUEL Category. So I was hit with lot of unexpected bouncers.
1. Since it is considered as fuel txn, no rewards from KIWI, so there goes my 2%.
2. Since it is considered fuel txn, got 1% as fuel surcharge fee +18% GST on it = 1.2%
3. Since it is considered fuel txn and went above 10K limit set by yes bank, got charged additional 1% as fuel transaction fee +18% GST on it = 1.2%
So in total, paid 2.4% extra for using credit card on UPI and will get 1% back from HDFC DC, so net loss on this txn is 1.4% (336 Rupees) for using Credit Card instead of cash..
Now, the lesson learnt and what I could have done better.
1. Obviously, could have done test transaction using my IDFC CC and checked the MCC before going with full payment, but I thought this is direct transaction and I don't have to worry about such stucc, but I was wrong.
2. Could have done small payment with yes back kiwi first to check whether I am getting 2% rewards, didn't think about it at the moment as I was little busy at work during the whole time.
3. If I have done #2 and it didn't reward me, could have used SBI BPCL OCTANE RUPAY CC through UPI and this 24K txn would have at least helped me to hit next year's fee waiver target.
4. Could have used multiple rupay CCs though UPI to avoid at least the additional fuel transaction charge of 1.2%
Open questions:
1. Will I get fuel surcharge waiver for the fuel surcharge paid? or yes bank kiwi has any limit on the fuel transaction amount when it comes to waiver? Most CCs won't do surcharge waiver for transactions above 5K, so asking.. couldn't find it anywhere in T&C and only thing I could find is max cap of 250 per month for surcharge waiver. I will follow up with yes back after a few days just to be sure.
2. I have 2 fuel cards - SBI BPCL OCTANE RUPAY CC & BOB HPCL Energize. Since this is marked as fuel, would any fuel cards have given full rewards? I doubt it as this is all co-branded cards and won't give rewards for such txn, but who knows?
3. Is there any other cards that would have helped me here? Amex wasn't accepted, so that isn't an option, any other cards that could have came in handy here?
4. Could have simply used cash to avoid all this mess.
Tagging @TechnoFino for reach and more insights, remove the tag if you feel it is unnecessary
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now , let me 🛌