RBI Directs Visa and MasterCard to Halt Corporate Card Payments.

117°
Deal Cadet
vicky191in310

RBI Directs Visa and MasterCard to Halt Corporate Card Payments.

https://m.economictimes.com/tech/technology/vis...

6 Comments  |  
6 Dimers
  • Sort By
Deal Cadet Deal Cadet
Link Copied

These restrictions are applicable to Visa and MasterCard cards issued to corporate legal entities such as companies and organizations (not individuals or employees working in such places.).

Some journalists are writing about how tuition fees and your rent payments might be affected.

Say, for example, if Company A wants to pay Supplier B using their corporate VISA or MASTER card. Company A can pay Supplier B using such card only if Supplier B has a KYC'ed POS card machine account ( i.e Supplier B is eligible to accept card payments.)

Company A's card to Supplier B's google pay account , etc. , etc. are not allowed. 

This is to prevent large transactions from corporate cards flowing to non-KYC'ed recipients.

Also to stop corporates / promoters / management / employees with access to company's accounts from using this loophole to drain money out of the company accounts as business expenditure. The recipients of such large corporate card transactions cannot be identified or taxed if they are non-KYC'ed. .

Also to stop organizations from doing money rotation using the credit cards for raising interest free funds. 

Helpful Helpful
Link Copied
then why not rupay
Finance Ninja Finance Ninja
Link Copied

@narayana1dd249

RuPay Card have only 1 or 2 commercial cards and corporate cards.

RuPay is currently preparing to launch corporate cards and commercial cards on a large scale. It will take some time maybe 3 to 5 years.

Just few weeks ago, RuPay discussed with its shareholders and partner banks (SBI, BOB, HDFC, ICICI, HSBC, Axis bank) for commercial cards and updates were provided.

RuPay also provided details on corporate cards new product propositions.

There's still a long way to go, These are baby steps right now.

View 1 more reply
Deal Newbie Deal Newbie
Link Copied

It will stop credit card to bank transfer via rent payment options

replyuser
Click here to reply
Reply