Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:

  • Mr. Manish Khera, Founder & MD, Arth Impact (HAPPY)
  • Mr. Shirsha Ghosh, Co-Founder Torit Innovations
  • Mr. Arvind Narayanan, Co-Founder, Enlearning skill development Pvt ltd
  • Mr. Sheoji Meena, General Manager, Bank of India
  • Mr. Neeraj Chandra, Head of Operations and Technology, India, Abu Dhabi Commercial Bank
  • Mr. Roopesh Chandran, Director Business Development, Visa Inc
  • Mr. Taufique Khan, Sr. Product Manager-NRI Products, DBS Bank
  • Mr. Kamonasish Aayush Mazumdar, Founder & CEO at Foodieverse
  • Mr. Ajay B Panicker, CEO & Founder, NetPay Limited
  • Mr. Hemal Shah, former Technical Product Manager, Mastercard
  • Mr. Rakesh Shetty, Product Head Micro Loans, Fortune Credit Capital Ltd
  • Mr. Subbiaa Olimuthu, former Product Manager – RuPay Product
  • Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
  • Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous

Here’ a message shared by FIAKS community thought leader; “ALERT: Amazon Prime has requested for Debit of Rs.1014.02 on 2020-09-24:11:05:39 to validate Credit Card xxxxxx. Not you? Call 18002586161”.

Member says the card has been registered for 2 years. They possibly have a process to validate the card every year or 6 months (unnecessary in any case).So, here are the concerns that come up;

Question 1: Isn’t this process of validation every 6 months unnecessary? Also, look at the amount charged to validate the card. This could have been Rs. 100. In India all banks do a -1/+1 penny drop transaction to validate card/account. They are doing Rs 1000+ and not even returning it. How is Amazon getting away with it?

  • A member mentions, “this is a normal authentication. Any merchant can do this if they chose to. It can be Rs.1, Rs.1,000, or Rs.100,000. As long as authentication is canceled, the block on your card gets released almost immediately. Though, I do not see why Amazon would do this.”
  • There’s no rule on how much one company should charge. Most companies charge $1 to authenticate, which they return in some time. Money comes back to you, Amazon returns this in a day or two.
  • Validation Authentication/temporary block can be of any amount there is no set mandate. There are best practices that ensure the least customer inconvenience and avoid unnecessary one-time blocks.
  • Also, when its card validation transaction merchant reverses the same immediately also.

Question 2: Can an Indian bank/PPI get away with such impunity?

Question 3: Aren’t the rules uniform for all? or is that Amazon getting away by “saying I am not regulated like google” & the may be sponsor bank has no clue about it?

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