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Learnt a lesson few days ago while changing my car tyre and sharing for everyone's awareness

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sunit123 said:
I am from bangalore...they are not aggregator..their executive told they have go-down and he is employee who replace battery/tyre....they offer service only in few cities.
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Great. They are kinda wholesalers, passing the commission cut to the end customers.
 
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kuchbhi said:
Ahh don't taunt me I'm not yet into that field!
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Before marriage it's taunting
After marriage it's haunting
This whole marriage deal is daunting.

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paxauquabriba-4876 said:
any reason for using infinia. what about forex charges.
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Forex markup was 2% which I thought would be offset by the 3.33% RPs. IDFC Select was the same too. All the other CCs the family member had had 3.5% as the forex markup. Diners isn't accepted in the whole of Australia. International trips are rare; so they never thought of getting one of those 0 forex markup CCs.
 
Desu Sarath said:
I thought you will mention about different tyres from different companies and their Pros & Cons.
Things to be taken care at service center etc etc.

Please change the headline for better understanding.
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Same I assumed 🙂 This post has nothing to do with Tyres, it is more about a high value retail transaction but with Fuel MCC.
 
I remember I had purchased a single tyre (Goodyear one) 2 years back from Amazon; listing price was already 700-800 lower than local shops and on top of that got 10% off on credit card which reduced price further by 500 approx. In total saved 1200-1300 instant and also 3.3% additional in form of reward points.

Local shop charged me only 100rs as replacement charges for old tyre !!
 
Rishabh said:
I remember I had purchased a single tyre (Goodyear one) 2 years back from Amazon; listing price was already 700-800 lower than local shops and on top of that got 10% off on credit card which reduced price further by 500 approx. In total saved 1200-1300 instant and also 3.3% additional in form of reward points.

Local shop charged me only 100rs as replacement charges for old tyre !!
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Tom Cruise 80S GIF
 
AlgoTrader said:
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
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Mujhe laga tyre kaise change karte hai wo bataoge 😆😆😆
 
Changing tyres taught me unexpected lessons on credit card transactions. Misjudging MCC codes cost me extra fees. Key takeaway: always verify MCC before high-value payments. Use dedicated fuel cards or cash to avoid surprises. Learn from mistakes, plan ahead, and drive safely to extend tyre life and ensure road safety!"
 
S
AlgoTrader said:
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
Click to expand...
Slightly unpopular opinion on this, rewards aren't the only reason for owning credit cards. Sometimes the fact that you get to use an amount interest free for 15-50 days depending on when you do the transaction is also a important feature that almost all holders ignore.

As far as what happened, we have all been there. We all make these kind of mistakes and it's human. The only reason I am replying to this is because of the solutions you have mentioned:
  • Using multiple credit cards
  • Doing test transaction and checking the MCC and so on.
Is doing all this really worth the hassle of saving 1-3% on a transaction of this amount (25000, so considering 2% rewards comes down to 500 Rs)??
I understand people doing this for big ticket purchases like Jewellery, cars etc.
 
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