HDFC Netbanking

Recently, I created a current account with HDFC bank for my business – Wide Aware. Its convenient. Yes, but there are some problems people might want to watch out for when it comes to HDFCNetbanking.

Using the Netsafe account for online purchases is a prime example. What basically happens with this is that you purchase a Netsafe card which is a one time thing and use the data from that card to do your shopping, so that you don’t end up sharing your real card details.

Great! Now comes the glitch. You need to put a maximum limit on your card. The maximum limit is debited from your account!!! Not your purchase amount. Your balance statement shows the purchase of a Netsafe card rather than your actual purchase. So, if like me you use it to activate your Paypal account and put a generous limit on your card in your ignorance, what you get is a loss of Rs.1000/- (for example) with the added pain that you can’t activate your account, because the 4 digit code that you should get will not come into your bank statement at all.

I see this as a horrible service, since no one tells you that the maximum limit you put on your card is going to get indefinitely debited from your account. Its 44 days since I made the payment, and I have yet to see any kind of refund of the balance. How’s that for a reliable banking experience?

I have phones the bank 4 times about this. The first time, I was told that it takes a month from the purchase for the Netsafe balance to return to the account. Then I called after the month was over. Their computers were down. Then I called again. They said they would look into it. Then I called again and was told that the baking executive would get back to me within a day or two. It has been a week since that. I have also used their contact form to email them about this, and have received a nice email of thank you for contacting them and their representative will get back to me.

I am now in the process of wondering if its worthwhile to bother with this any more or should I simply shut down my account and approach consumer courts? Wouldn’t this be fraud?

So folks, big banking names are not necessarily more reliable with your money. Be careful with your hard earned money even when it is in the bank.

Update:

It tool almost a month, but my balance WAS refunded.

Wisetechie has shared this link and information:

When does the source account get debited – at the time of creation of NetSafe Card or at the time of purchase payment ?

The amount gets debited at the time of creation of the NetSafe Card.

What happens if I do not use the NetSafe Card at all or if I use only part of the NetSafe Card amount?

For a completely unused NetSafe card created from your Credit Card, the amount is credited back at end of validity period. For Netsafe cards created from your Debit Card, the amount will be credited back in 3 working days to the source account.

In case the NetSafe Card was partially utilized, the balance amount gets credited to the source account within 7 days (for Netsafe Card created from Credit card) or at the end of 35 days (for Netsafe card created from Debit Card) from the date of transaction.

Thank you!

Vidyut

Vidyut is a blogger on issues of National interest. Staunch advocate of rights, learning and freedoms. @Vidyut 

  18 comments for “HDFC Netbanking

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    September 10, 2010 at 12:12 pm

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    September 10, 2010 at 12:12 pm

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  3. August 9, 2010 at 12:45 pm

    Paid for webiya membership with netsafe card.Thn after 10 days i asked for a refund.They told me they(wibiya staff) havn’t charged my card.Then where the hell did my $10 go.

  4. August 9, 2010 at 12:45 pm

    Paid for webiya membership with netsafe card.Thn after 10 days i asked for a refund.They told me they(wibiya staff) havn’t charged my card.Then where the hell did my $10 go.

  5. December 19, 2009 at 10:16 pm

    Just an example.

  6. December 12, 2009 at 10:48 pm

    I don’t see why they can’t do anything about it. They need to have a mechanism that will accept refunds and send them back to the account, or most of the online shopping is risky even where sellers will refund dissatisfied customers… say for a period of 3 months following the sale.. One month is a must. Most money back guarantees offer a month to return – and this is a major sales technique online. Otherwise, its not a good service.

    Paypal is not accepted on all sites that accept online payment.

    BTW, what happened with your flight ticket? Or was that just an example?

  7. December 12, 2009 at 9:30 pm

    @Vidyut:
    I think they can not do much about it. It is the way all the Virtual Credit Cards work.
    There are two other ways one can do on line transactions with the help of HDFC also.

    No1: Transfer some money to PayPal and then transact through it. As we can keep a check on the amount of money we transfer to PayPal so frauds will have less deleterious effect.

    No2: Go for a real Credit Card, which beats the whole purpose of minimizing damage in case of on line fraud.

  8. December 11, 2009 at 10:38 pm

    @Dr Bikash

    Are you serious? And here they claim to provide the service to keep your money safe!!!

  9. December 11, 2009 at 8:10 am

    @Vidyut:
    Nothing. They just said it is how it works. It is one time and one way money transaction.

  10. December 6, 2009 at 8:07 am

    Oh hi, sorry for joining late, but I have another twist to add.
    If one buys something via NetSafe and wants to refund, he/she can not get a refund.
    One big example: When you book a flight ticket via NetSafe and miss it then you CAN NOT get a refund, because the card has been expired.
    How is that for a shock?
    Dr Bikash

  11. Vidyut
    December 6, 2009 at 10:01 am

    Vin,

    I hadn’t noticed your comment earlier. No one wants to make an extra heavy card, but everyone begins somewhere.

    In my case, it was the first card I made, and I had imagined that what amount I spend will be used, and the card amount is like an upper limit. Then, when I noticed that entire amount debited, I thought the balance would be refunded immediately after I’d used the card.

    I made it “extra heavy” imagining that I may think of things to add to my order.

    I had not imagined that an automated process with a leading bank would simply tie up my money like that.

  12. Vidyut
    December 6, 2009 at 9:56 am

    Oh my God!!! I hadn’t even thought of this! I wonder what safeguards HDFC has for this. I mean, surely they must have some support?

    What did they tell you?

  13. Rahul
    March 14, 2009 at 6:44 am

    “Quote from Netsafe Faq”
    ******
    What happens if I do not use the NetSafe Card at all or if I use only part of the NetSafe Card amount?
    For a completely unused NetSafe card created from your Credit Card, the amount is credited back at end of validity period. For Netsafe cards created from your Debit Card, the amount will be credited back in 3 working days to the source account.

    In case the NetSafe Card was partially utilized, the balance amount gets credited to the source account within 7 days (for Netsafe Card created from Credit card) or at the end of 35 days (for Netsafe card created from Debit Card) from the date of transaction.

  14. Vin
    December 25, 2008 at 12:51 am

    I wud like to say why not be carefull at the time of making netsafe card? Why the hell does one need to make xtra heavy card so as to run around for refunds later?

  15. CM
    September 16, 2008 at 10:53 am

    The four digit paypal verification number will be found in your netsafe account transaction details.

  16. July 16, 2008 at 6:23 pm

    Thank you Wisetechie and Sujoy for your perspectives.

    I AM happy with my HDFC account now, but it takes a lot of transactions with support.

    Wisetechie, this IS a problem I have spotted. I see that you have a problem with me having a problem, but it would help better if you can share a link where they have mentioned the time taken to return unused funds in their official documentation or where they mention that the full amount of the card will be locked until the card is used for payment or refunded…..

  17. Sujoy
    July 5, 2008 at 6:04 am

    I had the same problem. I found that you can get the details from the VCC account. I hope this helps you understand better. I agree with you that the system is not very clear about this, but I have not had any problems.

    Wisetechie, why shouldn’t I use a VCC to verify a Paypal account? I have done it myself, and it works.

  18. Wisetechie
    July 5, 2008 at 5:42 am

    My money is returned within a week usually, also you cant blame them for Paypal, you yourself shouldnt be using a VCC to verify a paypal account.

    Hope your complaint is resolved now, or you can use the form on their homepage.

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