How people are exploiting Paytm flaw to earn money
The mobile wallet company Paytm has noticed that people were earning money by exploiting a flaw in the paytm wallet system.
Some people were adding money to their paytm wallet using credit card, which earns them some loyalty/ reward points and then transferring the money from the paytm wallet to saving account, which will earn interest for the period till payment of credit card bill is made. There is no cost in transferring money from credit card to wallet and wallet to bank account since, paytm does not charge anything for these services.
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Suppose you transfer Rs.20,000 from your credit card to paytm wallet, you earn reward points and then transfer this amount to your saving account and you earn 4% interest for 30-45 days.
CEO of Paytm Vijay Shekhar Sharma told Times of India “We were really shocked and disgusted, when we realised what was happening. And we have blocked the cards of users, who were using this loophole in the system to their advantage”.
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This was the reason Paytm announced to levy 2% service charge for adding money to wallet through credit card, which was subsequently withdrawn for customer convenience. Paytm says it is devising ways to curb the misuse.
We request that you should not indulge in these unethical practices for sake of small gains, which may also lead to blocking of your paytm account.