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Repercussions of lending my credit card to friend / family on their international trip

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darkjediknight

darkjediknight

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Do you folks let your friends / families use your card on their international trips?
I won't lie it's in my interest, will help me earn more rewards on my Burgundy Magnus. Should I risk it considering it's an Axis bank card and they're known to block cards? cards.
Repayment is not a concern the person is very close and we have shared finances.
 
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It has both Adv & Disadv. It depends on how you take it.

Adv : you will get reward points on ur M4B. and you might cross 1.5L that month and any expense above that u will get 35MB/200rs spend.

Disadv: If the total International spend is above 10L then the bank will collect 20% TDS from you. ur ITR will show that spends. basically lots of paper work u'll need to keep if any question are asked in future
 
darkjediknight said:
Do you folks let your friends / families use your card on their international trips?
I won't lie it's in my interest, will help me earn more rewards on my Burgundy Magnus. Should I risk it considering it's an Axis bank card and they're known to block cards? cards.
Repayment is not a concern the person is very close and we have shared finances.
Click to expand...
I don't and I won't. I swipe the card even if such expenses are to be made. The card is for you to use.

Moreover, there could be issues later given your card details are known to your friends regardless of how close they are. Btw, how would make the credit card payment? Will they be crediting directly into your card account or transfer the amount to your savings account and then you do the payment. The latter would attract IT dept's attention unless it's taken as a gift from within family. Also, tomorrow if your friend is unable to pay you the amount at the right time, your relationship with your friend as well as the bank may go for a toss. Remember, banks don't honor comp. against any fraudulent transactions in case they find out and you always run risk of getting blocked out.
All in all, not something I would advise and also risk to reward isn't favorable.
 
sahilgulati5 said:
It has both Adv & Disadv. It depends on how you take it.

Adv : you will get reward points on ur M4B. and you might cross 1.5L that month and any expense above that u will get 35MB/200rs spend.

Disadv: If the total International spend is above 10L then the bank will collect 20% TDS from you. ur ITR will show that spends. basically lots of paper work u'll need to keep if any question are asked in future
Click to expand...
I agree with the TDS thing. Something to be considered.
 
sahilgulati5 said:
It has both Adv & Disadv. It depends on how you take it.

Adv : you will get reward points on ur M4B. and you might cross 1.5L that month and any expense above that u will get 35MB/200rs spend.

Disadv: If the total International spend is above 10L then the bank will collect 20% TDS from you. ur ITR will show that spends. basically lots of paper work u'll need to keep if any question are asked in future
Click to expand...
International spend won't cross 10L as sadly I haven't been on any international trips this year.
 
darkjediknight said:
@sahilgulati5 @theXfactor So the thing is. The spends he does will be expensed to my company (we're both business partners) and I'll get reimbursement from the company to pay my bills.
Click to expand...
At the end, things should match up. Since I don't have details can't suggest much here. However, if you haven't done international trips while your statement shows you have and also claimed the reimbursements in your personal account, ready to show docs at some point. It's just a matter of time.
 
theXfactor said:
At the end, things should match up. Since I don't have details can't suggest much here. However, if you haven't done international trips while your statement shows you have and also claimed the reimbursements in your personal account, ready to show docs at some point. It's just a matter of time.
Click to expand...
Thanks for the input. Lots to think about 🤣
 
darkjediknight said:
Do you folks let your friends / families use your card on their international trips?
I won't lie it's in my interest, will help me earn more rewards on my Burgundy Magnus. Should I risk it considering it's an Axis bank card and they're known to block cards? cards.
Repayment is not a concern the person is very close and we have shared finances.
Click to expand...
No. Think of ways in which you the bank can find out (for example, card being used abroad while account is being accessed in India or worse like card getting lost or stolen- bank can also reject fradulent transactions in this case). And if they do, they certainly will block your card and probably reward points too.

Get an addon card if the benefits are gonna be that good.
 
mj01 said:
No. Think of ways in which you the bank can find out (for example, card being used abroad while account is being accessed in India or worse like card getting lost or stolen- bank can also reject fradulent transactions in this case).
Click to expand...
There was a case few years ago where an atm withdrawal didn't go through properly but the money was debited. Upon checking camera, they found that the card was used by the spouse of the holder. The bank rejected reversal of the money since it violated the TnC. This was SBI.
 
Last edited:
sahilgulati5 said:
It has both Adv & Disadv. It depends on how you take it.

Adv : you will get reward points on ur M4B. and you might cross 1.5L that month and any expense above that u will get 35MB/200rs spend.

Disadv: If the total International spend is above 10L then the bank will collect 20% TDS from you. ur ITR will show that spends. basically lots of paper work u'll need to keep if any question are asked in future
Click to expand...
OP can set limits in App Control centre.
 
sahilgulati5 said:
It has both Adv & Disadv. It depends on how you take it.

Adv : you will get reward points on ur M4B. and you might cross 1.5L that month and any expense above that u will get 35MB/200rs spend.

Disadv: If the total International spend is above 10L then the bank will collect 20% TDS from you. ur ITR will show that spends. basically lots of paper work u'll need to keep if any question are asked in future
Click to expand...
Are you sure about the TDS thing on credit card? I don't think it is applicable on credit cards usage in foreign currency. I have been using my Magnus card well over 15 lacs annually during my foreign trips and never been charged any TDS. Even during CY my foreign spendings are > 20 lacs.

But yes, it will be reported to I-Tax deptt. once usage > 10 lacs annually and will reflect in your AIS statement.
 
mj01 said:
No. Think of ways in which you the bank can find out (for example, card being used abroad while account is being accessed in India or worse like card getting lost or stolen- bank can also reject fradulent transactions in this case). And if they do, they certainly will block your card and probably reward points too.

Get an addon card if the benefits are gonna be that good.
Click to expand...
In order to avoid this scenario, simply inform the customer care that you intend to use your card in x country and mention your travel dates. My spouse uses my Magnus card regularly during her international office trips and have never faced this issue. There is no way you can apply for an Axis add-on these days.

For HDFC cards, there is an option embedded in the Internet banking portal itself, wherein you can update your upcoming international travel plans and the bank will never chase around it.
 
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