HDFC Bank, India’s largest credit card issuer, is making significant changes to its reward points policy across various categories. These changes, effective from September 1, 2024, and October 1, 2024, aim to address the misuse of points while ensuring regular users continue to benefit.
New Caps on Reward Points
Utility Transactions: Starting September 1, 2024, reward points earned on utility transactions (MCC Code 4900) will be capped at 2000 points per calendar month. This move targets high-spenders in this category, ensuring fair use of the rewards system.
Telecom and Cable Transactions: Similarly, reward points on telecom and cable transactions (MCC Codes 4812, 4814, 4899) will also be capped at 2000 points per month. This change prevents excessive accumulation of points through these payments.
Education Payments Adjustments
HDFC Bank has specified that no reward points will be earned for education payments made through third-party apps like CRED, Cheq, and MobiKwik. However, direct payments through college or school websites or their POS machines will still earn reward points. This adjustment aims to curb indirect and potentially inflated spending in the education category.
Specific Credit Cards Exempt from Education Rewards
Several business-oriented credit cards, including BizBlack Metal Card, BizPower, BizGrow, and others, will not grant points on education-related transactions. This decision helps streamline rewards for genuine business expenses.
Redemption Limits for Tanishq Jewellery and Apple Products
Tanishq Jewellery: From October 1, 2024, Infinia cardholders will face a cap of 50,000 reward points per calendar quarter for redeeming Tanishq vouchers. This quarterly cap is designed to prevent excessive redemptions and encourage balanced use of points.
Apple Products: Also effective October 1, 2024, redemption for Apple products will be limited to one product per calendar quarter. This could be any item, from an Apple polishing cloth to a MacBook Pro, but only one product is allowed per quarter.
Additional Fees on Rental Transactions
Starting August 1, 2024, HDFC Bank will impose a 1% fee on rental transactions using its credit cards, capped at INR 3000 per transaction. This fee addresses the rising trend of using credit cards for rental payments, which can generate substantial reward points.
Impact on Regular and High-Volume Users
These changes aim to balance the rewards system, ensuring regular users continue to benefit while preventing misuse. For example, to earn 2000 points on Infinia for utility bills, one would need to spend INR 60,000. This cap is reasonable for most users but limits excessive spending solely for points accumulation.
Conclusion: Navigating the New Policy
HDFC Bank’s new reward points restrictions will significantly impact how users accumulate and redeem points. While these changes may inconvenience some high-volume users, they ensure a fair and balanced rewards system for all. Regular users can continue to enjoy their benefits, while those engaging in manufactured spending will need to adjust their strategies.
