Paytm has added a 2% fee on funds added to wallet using credit card (CANCELED!)

mhsabir

Xclusive
Staff member
Messages
20,064
Location
Chennai
ISP
Airtel & Hathway
Some financially savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money.

What do they mean by this - They analyzed all KYC accounts & came up with this info???
 

Sushubh

Be nice pliss
Staff member
Messages
383,320
Location
Gurgaon
ISP
Excitel
Airtel
public admission that they possibly categorize their users based on their professions for god knows what reasons lol. remember kids, we do not have any privacy laws.
 

v1rus

Regular
Messages
931
Location
NA
ISP
Airtel
i might be wrong here but i thought wallet apps blocked transfer of funds back to bank account if it was added through credit card. refund was only processed through the original mode of payment?
Say X added money to his wallet using Credit Card made a payment to Y. Y can transfer this money to his bank account without paying any charges.

The problem arises when X & Y are in cahoots.
 

v1rus

Regular
Messages
931
Location
NA
ISP
Airtel
public admission that they possibly categorize their users based on their professions for god knows what reasons lol. remember kids, we do not have any privacy laws.
Possibly Yes.

Another possibility could be they analyzed the users based on the non-legit transactions flagged by their system
 

Sushubh

Be nice pliss
Staff member
Messages
383,320
Location
Gurgaon
ISP
Excitel
Airtel
just a few days ago they blacklisted people who were actually doing this.

Unable to add money to wallet with your Credit Card? Know why

what was wrong with selectively targeting users who were actually abusing this feature! considering they are so confident that they know the people who are doing it actively. in fact they also know which kind of companies they are working at!

the least they could do is to highlight this change during the wallet topup wizard. right now there is no. the money is just added in the final screen. someone like me would not even notice it.
 

mhsabir

Xclusive
Staff member
Messages
20,064
Location
Chennai
ISP
Airtel & Hathway
It was a major flaw yes - when you brought back a charge to bank transfer - you have basically eliminated the flaw - the only thing remains is the transfer to Paytm bank account, which they promised will be free. They could have blocked that too.

Freecharge keeps cashbacks separate. Mobikwik used to keep that separate, recently started nonsense of only 10% of remaining cashback usage at a time. So not sure why Paytm could not implement the same.
 


mhsabir

Xclusive
Staff member
Messages
20,064
Location
Chennai
ISP
Airtel & Hathway
Transfer back only to source mode of payment and/or not allowing transfer of credit card loaded funds to bank accounts - should be sufficient.

They are just being idiotic right now - they may make gains because of so many people not using the cashback coupons. So in a way, maybe a planned move to make money

As far people misusing goes - Unless they are all a bunch of nincompoops, they would have known beforehand that it would be misused - at worse they may not have anticipated the enormity
 

Sushubh

Be nice pliss
Staff member
Messages
383,320
Location
Gurgaon
ISP
Excitel
Airtel
but when two parties are involved, they cannot refuse transfer to bank account for the funds that were added using credit card. though it could have been blocked for users and enabled for retailers after proper kyc. of course that takes away a large part of the whole charm where any shopkeeper can just install Paytm and start accepting money which he can then send to his bank account.
 
Messages
149
Location
NA
ISP
Localbroadband
"Transfer back only to source mode of payment and/or not allowing transfer of credit card loaded funds to bank accounts - should be sufficient." looks like a good solution if Paytm is able to differentiate the amount of money which is transferred from credit card separately from the total balance.