I had a feeling this was a bank scam, but I just couldn’t put my finger on it until I read this. Hdfc is a popular place to go to get a new credit card and charge thousands of dollars in fees for using a debit card to make a purchase. It sounds like a scam, but in reality it is common practice for banks and credit card companies to charge these fees for debit transactions.
The scam is pretty simple. The person you use the debit card for makes a purchase at a store which gets charged with the fees. The person who uses the card to make the purchase gets a credit card number (with the fraudulent charge) and a card number to make the charge. The charge is then sent back to the card company, which sends out a scam email to the bank to get the money back.
This is how some fraudulent charges are made in the UK, for instance, when a debit card is used to make a purchase on Amazon.com, the company sends a scam email to the bank with a fake bill. It asks for the bank to withdraw the money from the account, however, the bank is so busy that the transaction is never completed. This is the case for a lot of Amazon debit card transactions, as well.
Amazon is not alone in this scam, as every single card company out there is doing a scam, including Diners Club, American Express, Travelers, Capital One, Barclaycard, and CapitalOne.com. Most of these people are not aware of the scam, however, because they are just trying to get money from your account.
The Diners Club and American Express scams get a lot of media attention, and both are on their way to being caught by the FBI. Diners Club is the most common of the three, and it’s a scam because they aren’t actually going to make you money. However, American Express has been around longer, and it’s not a scam because they actually make you money.
The CapitalOne scam is different. They are actually going to make money for whoever you have an account with, but they also have an agreement with the bank that if you don’t cancel the account they will charge a fee to the account holder and/or to you. This fee is usually somewhere around $25 or $50, which is a huge ripoff.
CapitalOne is an American Express bank, so they do make money for people with accounts and they do it for free, but they are charging fees to people who dont cancel their accounts. So the most anyone can get is free of charge banking.
This scam has been around for years, and it’s never really gotten more expensive until now. CapitalOne is charging a fee on accounts that have not been canceled (at least you have to ask why) and CapitalOne is charging a fee for checking accounts it will not debit. CapitalOne is charging a fee on the bank account it will not debit.
CapitalOne is getting sued over this, but it’s not the first time they’ve been sued over this. The first time was in 2007 and was a class action suit against Capital One, Citigroup, and JPMorgan for their shady practices.
You can read more about the case here.