Following members of the FIAKS community participated in the knowledge sharing E-Panel discussions:
- Ms Aishwarya Jaishankar, Vice President , Kotak Mahindra Bank
- Mr Dhruv Shankar, Head Digital, Standard Chartered Bank
- Mr Vineet Tewari, Executive Director , Payza
- Mr Yeshovantha Reddy, Senior Manager- Sales Operation South, MMPL Ltd
- Mr Harveer Singh,former Head -Product Marketing, Empays Payment Systems
- Mr Anil Shenoy, Director – Credit and Risk Management, First Data Corporation
- Mr Rana Sinha Ray, Head Technology, TimesofMoney
- Mr Aneesh Khanna, Executive Vice President, NSDL Payment Bank Ltd
- Mr Jayesh Shah, CEO, Prism Cybersoft Private Ltd
- Mr Ajay Panicker, CEO & Founder, NetPay Limited
- Mr Hemal Shah, Technical Product Manager, Mastercard
- Mr Ishan Vaish, India Partnership Manager, Apple
- Mr Vikram Panjwani, Chief Executive Officer, Anthill Spaces
- Mr Sameer Nemavarkar, Former CEO, Atos Worldline India
- Mr Neeraj Chandra, Head of Operations, Abu Dhabi Commercial Bank
- Mr Gautam Pande, Director – Market Product Management , Mastercard
- Mr Maunil Gajjar, Manager Projects, Aurionpro
- Ms Praveena Rai, Regional Head of Payments, Asia Pacific
- Mr Anupam Varghese, Former Head of Products, EKO India Financial Services
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum
FIAKS Community Question
If I had Rs. 10,000 due on my credit card statement generated on 12th and payment due on 1st of next month and a payment reversal of an old card transaction hits my credit card account on 18th for Rs. 5000, isn’t it logical that I need to now pay only Rs. 5000 more on the 1st? Why is my credit card company insisting that I should clear the entire Rs. 10,000 and the 5k will be adjusted in the next billing cycle? Can someone explain the product logic here?
FIAKS Community Discussions
A community member said the bill is generated already in the system, post which adjustment can’t happen. Think of it as two separate boxes, a current transaction module, and a billing module. Most widely card processing system used is vision plus. The card guys might be familiar with a term called ‘payment hierarchy’. Basically, each issuer decides the order in which the money we pay gets adjusted.
Another member said either you pay or they will charge interest as per the policy, it the system they cannot adjust for the coming payment or refund, it has to be settled as per the cycle
Explaining this FIAKS community member said that’s not how it works across all banks. Amex for e.g. the call center will re-calibrate the net payable down to 5,000. It’s not about the card processing system really, this is more about how they manage customers. We also allow net offs, in fact. we also allow customers to move surplus payments against a card back into their savings account.
While he agreed to the point that handling out of system becomes a mess. At least a few banks being able to handle these and customers cannot bear the brunt of technological limitations especially since no income has accrued as yet on account of late payment
Few of the FIAKS community members said that they were advised to pay the full amount otherwise the risk of paying interest at penal rates.
Amex is an exception as they accept this kind of requests. I had this issue with Axis Bank and they did not agree. I don’t think this is the right way to treat a customer. I had almost 15 days follow-up with Axis Bank, where the refund was of the equal amount but they did not agree. A similar instance happened with Amex and after a 5 mins call, they adjusted for me. Kotak listens to such issues too, not sure about other banks.
Another member said it holds true when we assume customers have only one card. In today’s scenario, with multiple cards as disposal, any plan to reduce credit days will lead to a reduction in spends. People have started using cards basis the billing cycle to optimize the credit period. Also not sure if APR will reduce even if the credit days are reduced.
Another member said if you pay what is due on your credit card statement because of the credit cycle. Say for example instead of a reversal it was a new purchase of Rs. 5000 on 18th. Will you pay Rs. 15,000 on 1st?
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