E-wallets to the rescue: How to turn credit card money into hard cash

And it is free if done through e-wallets. But wallet companies can block repeat offenders

 

Latest News - A few weeks earlier, Paytm had started charging its customers a two per cent fee for adding money to the wallet using their credit cards. However, the mobile wallet company withdrew the fee after a week, saying it would cause inconvenience to a large section of their customers.

So, how does one transfer credit card money into a bank account via an e-wallet? The mechanism is quite simple. A user sends money to the wallet through his credit card, say Rs 15,000. Well-established mobile wallets such as Paytm, MobiKwik and FreeCharge allow funds in the wallet to be sent to any bank account. All the person has to do is enter his account number and the National Electronic Funds Transfer (NEFT) code. He can send the entire Rs 15,000 to any bank account he wishes to. 

Most wallet companies don’t allow transfer of funds immediately. One can send the money to a bank account only after 48 hours. The best part: There are no charges on deposit or on withdrawal of money from the wallet. The wallet provider bears the cost. 

It’s a smart way to get a hassle-free loan. An individual does not need to fill up an application form, share documents, wait for the approval, and so on. There’s no fear of rejection because of a low credit score. It can also be at zero cost if the person pays back the issuer before the due date. To many, it may look line an easy credit line, but it’s not.

A few do it to earn points on their credit card without actually spending on anything. But banks have to report to the income-tax.(read more...)

Debit, credit card frauds: Banks will insist on an FIR

Getting a bank loan or credit card, buying an insurance policy or investing in a mutual fund is very easy today, given the several points-of-sale available. These include agents, online intermediaries and the bank/ insurance company/ fund house directly. But, what happens when you have to lodge a complaint with regard to deficiency of service or mis-selling? Should you approach the agent/intermediary or the company directly? What is the time-frame for the complaint to be resolved?

In addition to complaints on deficiency, insurance complaints include fraudulent calls claiming to be representatives of the Insurance Regulatory and Development Authority of India (IRDAI) and offering of policies of different insurers with various benefits.

In case of banking products, the common complaints include misbehaviour of collection agents for recovery on overdue outstanding credit cards/ loans, delay in resolving debit/credit card complaints pertaining to billing or disputed transactions, dispute/communication relating to interest rate on loans and advances, says Anand Aras, CEO, Banking Codes and Standards Board of India.

Mis-selling complaints include those saying the agent had promised a certain amount of dividend while selling the MF, but the actual payout was lower. Or the agent had not mentioned the lock-in period while selling the fund, says an official of a fund house. 

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