Credit Card Reward Points

Credit card companies usually offer the following schemes:

• Welcome Rewards - Some banks welcome the customer into being a credit cardholder by crediting their rewards accounts with welcome points. You could earn a few thousand reward points from the get go. You can also earn points by spending on your credit card within the first 90 days of card issuance.
• Regular Rewards - For every Rs. 100 you spend on your credit card, you will earn a set number of reward points. This can range from 1 point up to even 10 points or more.
• Accelerated Rewards - You can earn extra points when you spend on special categories such as shopping at partner stores, partner restaurants, other dining expenses, entertainment and so on. For example, if your credit card is travel-oriented, you can earn extra points when you spend on bus tickets, train tickets or flight tickets. If your card is a shopping-oriented card, you might earn extra points on retail purchases.
• High-value Purchases - Spending on purchases that are of high-value such as jewelry, travel bookings, and holidays can fetch more reward points.
• International Rewards - Some credit cards can earn extra points for spending on the card while you're abroad.
• Bonus Points - You can earn bonus points when you spend a certain amount on your credit card. For example, you earn 1 reward point for every Rs. 100 spent. But you spend Rs. 1.5 lakhs on your credit card in a month. Any more expenditure in the month will earn double the reward points for every Rs. 100 spent.
• Loyalty Points - Credit Card companies also offer rewards upon renewal of your credit card. For your loyalty to the credit card, you can earn a significant sum of points.
• Supplementary Cards - You can avail of supplementary cards for your family members. They should have attained the age of 18 years. Any points earned for spends on this card will be credited to the main credit card's rewards account.

Reward Points Redemption

Redeeming your reward points can be done in a number of ways. This will depend on the methods offered by the bank. Before you opt to redeem your accumulated points, you should check the following points.

1. Minimum points required - According to your credit card features, you will either require a minimum number of points to be eligible for redemption or there may be no minimum points required. But every reward will cost you a number of points that you will require to be able to redeem your reward points.
2. Expiration Date - Almost all reward points earned have an expiration date. Banks set this date at around 2 or 3 years from when they were earned. Check your reward points regularly and redeem them on time.
3. Redemption Fee - There is usually a fee associated with rewards redemption. This fee is approximately Rs. 100 which is charged for handling and processing the reward.

You can then go ahead and redeem your rewards for a gift of your choice. Banks offer various methods that make it convenient for customers to convert their points into gifts quickly and without any hassle.

Reward Points on Top Credit Cards

Modes of Rewards Redemption

• Online - Use your User ID and password to log in. You might have to link your credit card to your savings account in order to access your credit card information. Once this is done, you can view your credit card statements, pay your credit card bill, view your rewards summary and redeem your points. You can pick your rewards as per your points balance. Place your order and the merchandise or gift of your choice will be delivered to your registered postal address. It can take approximately 10 business days for your order to be processed and delivered. Any handling charges will be charged to your credit card.
• Customer Care - You can contact the credit card customer care of your bank via phone or email. Over the phone, a representative will walk you through your points balance and the process of redemption. You can place your request for redemption with the representative. Provide your required details and the product you have chosen. You might be required to download the redemption form as well.
• Post - You can download the rewards redemption form or get one at a bank branch. Fill it in and mail it to the bank's credit card division postal address. From the date of reception of the form, it can take 10 to 15 working days for your reward to be shipped to your registered address. The points will be reduced from your rewards point balance and the merchandise or voucher will be delivered to you.
• In-Store - Some banks have partnered with a number of retail stores and online stores where customers can shop and pay for their purchases with their reward points. Any balance amount for the purchase will be charged to the credit card.

What Can You Redeem Reward Points For?

Banks offer a variety of rewards to choose from under their rewards programmes, some more than others. Listed below are some of the rewards you could redeem your points for.

• Merchandise - Refer to the rewards catalogue provided by your bank to see what products are on offer that match your points balance. Choose merchandise that you would like which could either be one product or multiple products. Merchandise can span across various categories that include:
• Gift Vouchers - You can redeem your points for gift vouchers which are valued at Rs. 100 to Rs. 5,000 or more. Gift vouchers can be used to shop at the respective store or the online store. Gift voucher categories can include apparel, books, groceries, lifestyle, food, beverages and more. With a gift voucher, you can redeem it for products or items from the brand's store. Any remainder amount can be paid by means of your choice i.e., cash, debit card, credit card, etc.
• Air miles - Credit Cardholders can convert their reward points into Air Miles with partner airlines. Some of the Airlines that participate in rewards programmes are:
• Room Miles - Banks sometimes partner with hotels for their Rewards Programme. Under these schemes, customers can convert their reward points to room miles which they can redeem at the hotels. Some participating hotels include:
• Cash back - Convert your points for cash back which can be either used against your credit card bill or can be used to shop on your credit card. Cash backs are great to reduce your credit card outstanding balance.
• Charity - You can use your points to make a donation to a charity that is listed with the bank. You can make donations to sponsor midday meals or education for children. You can also contribute to helping the disabled, blind, elderly, and the poor. Charities under the rewards programmes also include contributions towards health, environment, employment, traditional employment, women and youth. Your reward points will be converted into the cash value and donated to the charity of your choice.
• Transfer Points - Some banks allow customers to transfer a certain limit of reward points earned to their family members or friends who also hold credit cards from the same bank. Axis Bank is one that provides this facility to transfer points as a gift to a family member who is an Axis Bank customer.

How You Might Be Losing Out on Credit Card Rewards?

Here are a few tips on how a cardholder can be more aware:

1. Cardholders must read the fine print that comes with credit cards. No matter how boring it must be, they should read the terms and conditions also.
2. Cardholders should make sure that the reward system suits their financial needs and their lifestyle. If they aren't frequent flyers, they should not opt for cards that provide flying benefits or AirMiles.
3. If the cardholder has a rewards account that they are unsure of, they should take note of what is available to them by getting in touch with the customer care executive. This will help them to become familiar of the kind of inventory they possess in the form of a credit card.

Rewards Catalogues

Banks provide their customers with catalogues that detail the products or merchandise available for rewards redemption. These catalogues can be found online on the bank's official website or on the bank's reward website. Banks sometimes dedicate a separate website to the rewards programme. This makes it easier and more convenient for customers to handle their rewards accumulation and redemption. Rewards catalogues will include the various items, vouchers, donations, and miles against which the reward points can be redeemed.

Rewards Programs Offered Through Partners

• PAYBACK:
  • American Express
• Loylty Rewardz:
  • Central Bank of India - Anmol Rewardz
  • HDFC Bank Infinia
  • HDFC Bank Regalia
  • HDFC Bank Diners Club International
  • IndusInd World Miles
  • Kotak Mahindra Bank - My Kotak rewards
  • Canara Bank - Canara Rewardz
  • Union Bank of India - Union Rewardz
  • Indian Overseas Bank - IOB Rewardz

Credit cards make payments easy for all expenses online and offline while offering various benefits

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