MasterCard SecureCode - Online Transactions

HDFC Bank in order to protect its MasterCard customers has made it mandatory to sign-up and use the "SecureCode" online authentication.

What his essentially means is, you have to register at HDFC Bank's Website if you hold a HDFC MasterCard. While doing any Online Transaction using your HDFC MasterCard, you will be displayed a message as shown below and then you have to enter the password which you have already set for SecureCode[ This password is different from HDFC Online Banking Password]

Thanks to the bank for taking an extra step to protect the interests of its customers.

2nd Largest Credit Card Issuer in India with High Quality Assets

We have just now learnt from our sources in HDFC Bank that the company after merger with Centurion Bank of Punjab has become the second largest credit card issuer in India beating beleaguered Citibank and SBI-GE Money in the race. HDFC Bank now has a base of 4.2 mn credit card customers while Citi India has around 3.8 mn and SBI-GE Capital have around 3 mn customers.

Mr. Parag Rao of HDFC Bank said,

We have followed a consistent strategy that relies on three pillars - delivery of best possible customer service, focus on internal customers, and offering simple products. The annual fee waiver was one step that impacted the entire industry. We were also forced to waive fees on our cards as most players were doing it.

HDFC Bank has a unique business model where it ha not issued any co-branded credit cards to simply enlarge customer base. HDFC focused on its own customers which has allowed the lender to pare operating costs.

Mr Parag Rao further added,

We have not chased bargain seekers in the market as they keep moving from one issuer to another. We have never blindly acquired customers or offered them low interest rates as against competition to retain customers. Our NPAs are lower than the industry average, and its operating cost is also among the lowest in the industry.

The gap between the largest and second largest credit card issuer still remains very high with ICICI bank having issued around 8 mn credit cards. Well, that's why ICICI Bank for the first time in 6 years reported negative growth in QoQ results and huge NPA from retail banking division.

Bogus Online Bill Payment Offer

HDFC Bank Limited has announced an offer for its Credit Card folders to try the Online Bill Payment facility known as "Pay Now". This doesn't require any registration and is introduced in association with Bill Desk a secured online bill payment partner.

HDFC will charges Rs 10 + taxes for every transaction. However, as an introductory offer till 31st May 2008, you will get a discount of Rs 50 on transaction of Rs 25o or above. Maximum discount of Rs 250 / Month. I called my utility company Airtel Telephone [Landline] and they said they will not give any such discount and are not aware of any such offer.

We suggest HDFC bank credit card holders to AVOID this as this is a trap laid by HDFC Bank to its customers. The banks customer care sucks as they hang-up on your call when they can't answer. Nothing new I suppose :-)

Credit Card Statements Purposely Sent Late ?

I hold HDFC MasterCard Gold Card for over 18 months now. Never I have missed a single payment nor have paid interest on that card. In a way of speaking, I pay-off in full every month.

However, I was shocked to see my last month statement in my hand after the due date [Feb-1]. I had already paid the card but still called customer care to see what they've got to say. The customer care lady said that a time of 1 working day shall be provided to pay-off and payment has to be by CASH or through ATM. She specifically said not to use the cheque. I started arguing for more time but she refused.

On further investigation with some sales associates I get to know that, HDFC has an internal systems through which they monitor how much fees this customer has paid to the bank. If you haven't paid any fees, then they are pressurizing the employees to some how rip you off.

Delayed statement means delayed payment and hence I will end in the never ending loop of paying APRs. If I paid the bill by cash then they levy the cash transaction fees.

It is really shameful on part of HDFC to have such poor business practices. Well, when our own regulators are not worried about improving the quality of business and practices, whom can I complain to ?

Another Rip off from HDFC Credit Card

HDFC Bank Credit Card has quietly started ripping off its customers since Q2-2007. These banks are worse than call g*rls. The executive while selling the card says, you can make payments by Cash, Cheque, ATM Transfer or Direct Debit of HDFC Bank account. I paid my card in three separate installments by cash and they have charged "Cash Payment Processing Fees" of Rs 50 per transaction + Taxes on the Fees. This is apart from the Interest Charged on outstanding amount. No prior information was given about the same. When argued with customer care she said the bank has already informed me. [Inform my A$$]

While these banks continue to rip off customers, RBI continues to watch the game without any measures.