Many Axis Atlas credit card users have recently been surprised to find their rewards blocked. The reason? Axis Bank suspects that these cardholders are using their cards for business expenses, which violates the terms and conditions of the Atlas card. Several such cardholders received emails on March 11 from the private lender asking them to provide details of their travel transactions between November 1, 2023 and February 29, 2024. "“…a pattern of non-personal usage of your credit card(s) has been observed for the transactions undertaken by you with the following merchant(s): travel category,” read the email. It added that "as per the bank’s policies, the credit cards can only be used for “…personal expenses and purposes, and any other transaction (including for business and commercial purposes) is prohibited under the Axis Bank’s card member agreement."
The bank has sent a web link in the mail, allowing users to submit invoices, online. The proofs must be submitted within 30 days of getting the mail. You can also use phone banking to get in touch with the bank.
The Allure of Atlas Rewards
Axis Atlas cards offer a plethora of travel benefits, including reward miles on every purchase, free lounge access, priority boarding, and even travel insurance. These perks are particularly enticing for business travelers who clock in frequent flights and airport layovers.
So in essence, these cards are showering you with benefits-reward miles on every swipe, free airport lounge access to chill like a VIP, priority boarding to skip those long queues, and even travel insurance for peace of mind. These perks are especially tempting for young professionals who travel frequently for client meetings.
The Terms and Conditions: A Catch You Might Miss
However, the key to using any credit card lies in understanding its terms and conditions. Here's where things get tricky with Atlas cards. While they might not explicitly forbid business spends, they often come with clauses about "merchant category codes" (MCC) that categorize transactions. Essentially, if you use your Atlas card for purchases that fall under a business-related MCC (like office supplies or travel agencies), it might trigger a red flag for Axis.
Why Does Axis Care?
There are a couple of reasons why Axis might raise an eyebrow at business transactions on Atlas cards. Firstly, these cards come with reward programs designed for personal travel, not business expenses. Secondly, there might be different fees and interest rates associated with business cards, which Atlas cards are not. So, if you're racking up business expenses on your Atlas card, it could be seen as a misuse of the product.
And now, Axis Bank is cracking down on what it considers "inappropriate usage" of the Atlas card. In an official statement, Axis Bank explained that they regularly monitor how cardholders use the features and benefits offered on their various credit cards. When they observe a pattern of transactions that seems to be business-related, they contact the customer and request evidence to prove that the spending was personal. The bank emphasizes that this communication is part of a process to discourage cardholders from misusing their personal credit cards for business purposes.
What Does This Mean for Atlas Cardholders?
If you're an Axis Atlas cardholder, it's important to be aware of the bank's policy on business spending. If you primarily use your card for personal travel and leisure, you likely have nothing to worry about. However, if you frequently use your Atlas card for business purposes, you might be at risk of having your rewards blocked or even your account suspended.
The Trouble Zone: Potential Consequences
So, what happens if you use your Atlas card for business spends and Axis flags your account? Here are a few possible scenarios:
Clawback of Rewards: Axis might reverse any reward points you earned on business transactions.
Card Suspension: In severe cases, your card could be suspended until you clarify the transactions.
Account Closure: Repeated misuse could even lead to account closure.
Finding the Right Fit: Alternatives for Business Spends
How to Avoid Reward Blockage
To avoid any issues with Axis Bank, it's best to keep your business and personal spending separate. Here are a few tips:
Use a different credit card for business expenses. Axis offers a range of business credit cards with benefits tailored for corporate needs.
If you must use your Atlas card for occasional business purchases, be prepared to provide documentation to Axis Bank if they request it. This documentation could include invoices or receipts that clearly show the business purpose of the transaction.