RAIFFEISENBANK DISCLOSED INFORMATION ON TERMS OF OBTAINING CASHBACK

The bank enforced the warning of the antimonopoly authority and disclosed information about restrictions on receiving cashback on credit and debit cards

It should be reminded that in July 2020, the FAS Russia found signs of violation of antimonopoly law in the actions of Raiffeisenbank: when promoting some credit and debit cards on its official website and in advertising materials, the bank focused on the cashback unconditionally received by customers, in which it is not necessary to comply any conditions or select certain categories of goods. At the same time, in the rules of the corresponding loyalty programs, there were still restrictions for obtaining cashback.

This fact, as well as the insufficient disclosure procedure for consumers by Raiffeisenbank in the rules of operations for which cashback will not be accrued, served as the basis for sending a warning to the bank by the Federal Antimonopoly Service.

The credit institution had to stop posting information that misleads potential customers when promoting the corresponding cards, and also disclose  full information about restrictions on receiving cashback for current customers.

Besides, as part of the implementation of the warning, the bank had to not only place in the information materials indications of the areas of activity of enterprises that are included in the list of MCC-codes*, for transactions in which cashback is not accrued, but also provide customers with information about all methods available to them to determine which MCC-codes are used in a particular trade and service enterprise.

“The bank has published on its official website the procedure for clients to receive cashback on the relevant cards and has added footnotes to advertising materials containing information about the procedure for its accrual, including transactions for which it is not accrued,” Olga Sergeeva, Head of the Department for Control over Financial Markets of the FAS Russia, said.

“And since Raiffeisenbank fully fulfilled the authority's warning, the FAS Russia has no grounds to initiate a case,” she explained.

*MCC is a four-digit code that defines the type of activity of the merchant when dealing with a bank card. It is used by banks to determine the purchase category and the percentage of cashback.