Some Credit card related queries

[Sarath]

[SOLVED] Some Credit card related queries

" Can CC capacity be increased by transferring funds into it before end of billing cycle?"


Well I will be talking about two components here and to avoid confusion they are:

My Mom's ICICI Credit Card
My own HDFC Debit card

Pretext:
I need to buy something for 12k with the CC (I cannot buy it with my Debit C) > The CC has only 5000 left for this month (rest used up)

Now, I have whatsoever no experience with CC at all, apart from making/ swiping it for payments, hence help me out with this.
I was thinking of paying 12k into the ICICI CC. Now there are two things that might happen, let me know which one,

After transferring 12k towards the CC (into the CC not out)
1. The Credit card purchasing capacity is bumped by 12k i.e. now the remaining CC funds become 12k + prev 5k = 17k

OR

2. The credit card is in part paid which means at the end of billing cycle I will have to pay 12k less BUT the CC fund balance continues to remain 5k till the end of billing cycle
(this is like hitting a wall for me; 12k gone but I still can't use CC)

I hope I am clear with what I am trying to say,
Basically looking for increasing the balance in CC to above 12k so that I can pay for my order.
Any other way I can do this, will also be appreciated.

Payment Options: (not important)

Spoiler

Payment Option : Cash / Cheque / Internet / Phone
1. For online payment if you have an ICICI Bank Savings Account
Go to ICICIBank.com and transfer funds from your savings account to credit card account using our Bill Pay facility.

To use Bill Pay, please follow these simple steps:
a. Log on to Personal Banking Services | Corporate Banking | Online Personal Banking in India | Business banking | NRI Banking | ICICI Bank with your Internet Banking user ID (you can call us at our 24-hour Customer Care for your free user ID and password)
b. Go to the Bill Pay section and "register" your card as a "biller". This is a one-time activity. You are now ready to make payments to this biller. To know more, please click here.

2. For online payment if you do not have an ICICI Bank Savings Account
a. Pay your ICICI Bank credit card dues from any of your non-ICICI-Bank savings accounts using Click To Pay. The service allows you to pay your credit-card outstanding with funds from your account with any of more than 15 other banks. To know more, please click here.

b.Pay your ICICI Bank credit card dues from any of your non-ICICI-Bank savings accounts also through net banking if your bank has enabled the NEFT facility. Use Transaction Code 52 and IFS code ICIC0000103 for ICICI Bank as the destination bank. To know more, please click here.
Also log on to Reserve Bank of India

3. By Auto-Debit
If you have an account with any ICICI Bank branch, you can make payment of your monthly credit-card bill (either the minimum amount due or the total amount due) by direct debit to your bank account through a simple mandate. To know more, please click here.

4. By Cheque / Draft payment
Make out a cheque/draft on a local bank and drop it into one of the collection boxes conveniently placed at our ICICI Bank branches / ATMs / Skypak drop boxes in your neighbourhood. The cheque/draft should be payable to "ICICI Bank Credit Card XXXX XXXX XXXX XXXX".

An ICICI Bank cheque will take 3 days to clear; a non-ICICI-Bank cheque will take 5 days.

Please drop your cheques/drafts well in advance to avoid any late payment charge and interest charge.

Please click here to locate the ICICI Bank ATM or Bank branch nearest to you.

Please click here for a list of Skypak drop boxes.

5. In Cash
You may deposit cash towards your credit card payment at any of our bank branches from 8 a.m. to 8 p.m. The payment would reflect in your account within 24 hours. Please make your payment before the due date to avoid late payment charge and interest charge. Cash payment of credit card bills entails a service charge of Rs.100 per payment.

RESULT: Yes, it works. 3-5days

 

[aniket.cain]

Yes, you can transfer funds anytime into your credit card account, even before or after the bill date, and you will still be able to purchase anything. So if you have 5k in your CC right now, pay 7k as its bill, which will be credited soon enough (for my CitiBank Card, it is instantaneous). Then you can buy anything for 12k. I did the same thing this morning and got myself an Omnia W.

 

[Sarath]

ICICI website shows the option of paying it using some other Bank's account.
I'm going to put in 12k from my HDFC through NEFT that way.

I hope ICICI has similar policy as CItibank or I'm screwed.

BTW congrats on Omnia W, WM7 iirc. Nice.

b.Pay your ICICI Bank credit card dues from any of your non-ICICI-Bank savings accounts also through net banking if your bank has enabled the NEFT facility. Use Transaction Code 52 and IFS code ICIC0000103 for ICICI Bank as the destination bank. To know more, please click here.
Also log on to Reserve Bank of India

ii..ii
~

 

[aniket.cain]

Actually, I have one more Credit card, from SBI. Now, since Citibank is my primary bank (as it has my salary account, and the CC I got is from Citibank itself, and is linked to my account). However for SBI, when I pay the bill, it generally takes 1-2 days to be credited to the balance. It seems that there is some delay if you are paying from some other bank. But still, you wont need to wait for the end of billing cycle to purchase something.
And thanks for the Omnia W.

If you have made any NEFT transfers before, you would be at ease with the process. If you haven't, it is still a piece of cake. I pay my SBI CC bills using this method itself.

 

[Sarath]

Hmm...in that case... I will NEFT it asap. Thanks for the info. I can be at peace now.

Ordered PS Vita on Amazon

 

[Sarath]

There is a problem. I made a NEFT payment to my Mom's CC for an amount of 12.5k so that I can pay for the Vita but nothing happened.

What do I do now?

Any ideas on how to order from Amazon? With a 5k CC and a HDFC debit card at hand

 

[Faun]

There is a problem. I made a NEFT payment to my Mom's CC for an amount of 12.5k so that I can pay for the Vita but nothing happened.

What do I do now?

Any ideas on how to order from Amazon? With a 5k CC and a HDFC debit card at hand

I could help but Amazon is strict in billing and shipping address.

 

[aniket.cain]

There is a problem. I made a NEFT payment to my Mom's CC for an amount of 12.5k so that I can pay for the Vita but nothing happened.

What do I do now?

Any ideas on how to order from Amazon? With a 5k CC and a HDFC debit card at hand

You paid the bill today, right? Then wait a maximum of couple of days. The amount will get credited in the Credit Balance soon. You can order then.

 

[Sarath]

This is what I did:

11th Feb: Placed order on 11th ICICI CC: Rs.12500/-

that week: Went on a shopping spree and emptied the CC to just 5k.

Realising I was screwed and I decided to do something. Screwed = CC has no money left, HDFC debit card rejected on Amazon, NetSafe cards (accepted / not still a mystery), Can't ask Dad for his CC

17th Feb: After this thread, I transferred an amount of Rs.12500 from my Savings account towards the ICICI CC (Mom's) - call it third-party-payment if you may, waited for a few days but CC still shows no improvement

21st Feb : Amazon declined CC due to insufficient funds. It still shows 5k. Today being last date for payment -amazon- I have little else to do so;
~ tried CC again -rejected
~ tried my HDFC Debit C -rejected
~finally HDFC Netsafe one time use virtual credit card - status unknown
created HDFC netsafe card as told by people on IVG, although amazon states this -*www.amazon.com/gp/help/customer/display.html?nodeId=518224

RIGHT NOW: Waiting anxiously and refresh spamming my order page to see if it is accepted or declined


I have been offered help from a few blessed souls but it is important that I place the order myself as I have free same day delivery option which is not available anymore.

I could help but Amazon is strict in billing and shipping address.

thanks. I can understand.

You paid the bill today, right? Then wait a maximum of couple of days. The amount will get credited in the Credit Balance soon. You can order then.

Yeah, waiting. It's taking too long to show up even though my Savings account has been debited

Verified by Visa & MasterCard SecureCode
Amazon.com does not currently support the Verified by Visa or MasterCard SecureCode programs. You can still use your Visa or MasterCard card as payment for an order, but you won't be asked to enter your Verified by Visa or MasterCard SecureCode password.

.....

 

[Champ]

^^ Intra bank payments may take 3-4 Working days so 18th-19th dont count
you should have used some ICICI bank account, its instantaneous.

 

[gopi_vbboy]

How does credit card give profit to banks?

 

[Sarath]

Life is such a $#%%^

Good news: My payment through HDFC NetBanking was successful.

Weird freaking News: Just after my amazon order my Mom's CC reflected an updated 16k bucks :X WT#

Now I've lost 15k into the CC for no reason and another 15k into my Netsafe card (although the latter was fruitful)

On a happier note: Amazon went out of it's way and offered me a free 4GB Vita card worth $20+10(ship) which costs 1600 here I <3 Amazon

Some pointers: Inter-bank Credit card payments took me 17th-21st which is 4 days from HDFC to ICICI CC

How does credit card give profit to banks?

Credit card companies charge a small commission (1-3 or 5%) for every transaction made with a CC. Same with a Debit card although rates might be similar or different.

Why merchants still accept CC?
To increase consumer traffic. People's preference to use them and various economic and social reasons.

Same reason why some shops, which I find in abundance in Tier-2 cities, charge 3.5% extra if you pay through card as opposed to cash.

^^ Intra bank payments may take 3-4 Working days so 18th-19th dont count
you should have used some ICICI bank account, its instantaneous.

You are right; took me 4 days. I was counting weekends also. My mistake.

 

[Skud]

benefits of CC for banks:-

1) No cash transaction, which actually saves cost to Banks.
2) Most people go overboard with purchases -> interest income.
3) Yearly maintenance charge -> Non-interest income.

 

[gopi_vbboy]

thanks for info skud and sarath

I knew that visa/master and bank share the charge % from merchant billing amount but not about saving in non cash transaction.

just curious that we pay same amount through cash or card most times.so how do they get profit in such case.(no sur charges)

 

[Sarath]

they will obviously make more profit in cash but will you go to someone who accepts only cash or to someone who accepts cash, CC, Debit C, Sodexo etc etc. It's all about convenience. The merchants had to make it a norm 'coz consumer adaptation of CC had increased.

For the same reason I mentioned that in certain smaller towns you will see an extra charge for paying through CC. Even in cities the same can be seen in some gold shops.

 

[NIGHTMARE]

Which bank CC service is good for us means purchasing overseas from amazon and newegg. Actually I don't have CC and in India paypal only works with CC or VC, unfortunately my both bank don't support VC service. Anyone here using SBI CC and Standard Chartered CC, please your comments are welcome.

Sorry sarath for highjacking your thread.

@Sarath: So we can buy any thing from amazon directly by using our CC and shipped to India including all taxes ? And one morething how you guys sending your product for RMA by using which service ?

 

[skeletor]

How does credit card give profit to banks?

some people have the habit of NOT clearing their Credit Card bill every month.

Like, someone spent Rs. 9000 with his credit card and cleared only Rs. 4000 at the end of that particular month.

Next month he will have to clear Rs. 5000 + higher interest + his spending of the next month if any.

In a nutshell - interest and surcharge.

Which bank CC service is good for us means purchasing overseas from amazon and newegg.

Any bank's Credit Card is fine.

 

[NIGHTMARE]

Any bank's Credit Card is fine.

So I can choose Standard chartered because there service are good compare to SBI, but I'm scare with Standard Chartered I don't for what they are going to charge.

 

[skeletor]

So I can choose Standard chartered because there service are good compare to SBI, but I'm scare with Standard Chartered I don't for what they are going to charge.

yea, you can.

 

[Sarath]

@NIGHTMARE: YOu are free to hijack this thread. It has served it's purpose atleast for me,
Coming to what you are asking. Well, I am just a student and use my parent's CC and also this was my first international online purchase. So there's not much I can help you with.

But despite all that, I still know one thing, pay your dues on time. Like absolutely, keep it at the top of the priority list, forget hidden charges (must be ~500 at most) etc etc just pay your dues.
What happens after that is not bad, it's horrifying. The way they calculate interest and other charges will baffle your mind.

Now second query Amazon. yes, you can buy anything from Amazon US / Uk with your Credit Card and I recently learnt even Virtual CC (HDFC Netsafe in my case).
RMA: That's the biggest problem. For RMA you will have to ship them back to Amazon. But many products such as apple ipods come with International warranty. In such cases you can get then repaired under warranty locally.
Case in ex: My bro's iP4 travelled to another country for repairs while the ipod was duely serviced locally. Both were bought in Abu Dhabi. It depends on product warranty also.

As for the charges you are concerned about, ask them if you can get one without any charges. I have seen many people getting CC without having to pay an yearly fees. This brings me to the second point:
Now you will get calls from your bank regarding XYZ policies. Now if you even accidentally say "yes" to it like even once, you will see that you are subscribed to some random policy and your CC gets debited for a fixed amount monthly. So just don't entertain such calls or "offers".

I cannot emphasis this enough but pay your dues