Axis Atlas credit card fiasco: How to avoid your rewards from being blocked

Axis Atlas credit cards have become a hot favourite for frequent flyers and travel enthusiasts. But there is recent buzz about cardholders facing trouble for using their Atlas cards for business expenditures. Business Standard unpacks why this seemingly convenient option might land you in hot water:

What really happened?

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 nonpersonal usage of your credit cards has been observed for the transactions undertaken by you with the following merchants travel category," read an email by the  bank to certain card holders.

It added that as per the banks 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 Banks card member agreement.

The bank has sent a web link in the mail allowing users to submit invoices online The proof 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 benefitsreward 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 is where things get tricky with Atlas card. While they might not explicitly forbid business spends they often come with clauses about merchant category codes  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.

1. Firstly these cards come with reward programs designed for personal travel not business expenses.
2. Secondly there might be different fees and interest rates associated with business cards which Atlas cards are not
3. So if youre 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 businessrelated 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 youre an Axis Atlas cardholder its important to be aware of the banks 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

How to Avoid Reward Blockage

To avoid any issues with Axis Bank its best to keep your business and personal spending separate. Here are a few tips:

1. Use a different credit card for business expenses 
2. 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