HDFC Bank has announced several changes to its credit card reward points program, effective September 1, 2024. Take a look at the changes
HDFC Bank credit card reward points limit
Starting from September 1, 2024, there will be a cap of 2,000 reward points per calendar month on utility transactions. These transactions are identified through Merchant Category Code (MCC) 4900.
Fee on utility transactions
Before this cap, HDFC Bank introduced a 1% fee on utility transactions for consumer credit cardholders, effective from August 1, 2024. This fee applies to transactions exceeding Rs 50,000. For business credit cards, the 1% fee kicks in for transactions over Rs 75,000, with a maximum fee of Rs 3,000 per transaction. The aim is to discourage using consumer cards for business transactions, which often exceed the Rs 50,000 threshold.
For most individual customers, this fee is not a concern since typical utility bills are well below Rs 50,000. Moreover, the bank clarified that insurance transactions do not fall under the utility category, so they won’t incur this charge.
Reward points limit on telecom and cable transactions
Similar to utility transactions, telecom and cable transactions will also have a 2,000 reward points cap per calendar month. These transactions are tracked through MCCs 4812, 4814, and 4899, with the change taking effect on September 1, 2024.
According to HDFC Bank, the limits on both utility and telecom transactions aim to promote fair use of credit cards. Some individuals have been exploiting personal credit cards to pay for business expenses or others’ bills to rack up reward points, meet spending milestones, or qualify for offers. These new limits will help curb such misuse and ensure everyone uses their credit cards within reasonable boundaries.
No reward points on education payments through third-party apps
From September 1, 2024, education payments made through third-party apps like CRED, Cheq, and MobiKwik will no longer earn reward points. However, direct payments through the educational institution’s website or POS machine will still qualify for reward points. These transactions fall under MCCs 8211, 8220, 8241, 8244, 8249, and 8299.
HDFC Bank has also introduced a 1% fee on education payments made through third-party apps, effective from August 1, 2024. This fee is capped at Rs 3,000 per transaction. However, direct payments to educational institutions remain fee-free, encouraging customers to use official payment channels.
Capping on redemption of reward points for Apple products
Infinia credit cardholders currently enjoy the freedom to redeem their reward points for multiple Apple products via the HDFC SmartBuy platform. However, starting October 1, 2024, they will be limited to redeeming points for only one Apple product per calendar quarter. The quarters are defined as April to June, July to September, October to December, and January to March.
Capping on redemption of reward points on Tanishq vouchers
Another restriction affecting Infinia cardholders involves the redemption of reward points for Tanishq vouchers. From October 1, 2024, there will be a limit of 50,000 reward points per calendar quarter for these redemptions. This measure, like the Apple product redemption cap, aims to regulate the use of reward points more effectively.
What is MCC?
A Merchant Category Code (MCC) is a four-digit number assigned by card networks (Visa, Mastercard, Rupay, Diners, etc.) to classify a merchant’s business. These codes are standard worldwide, making it easier to categorise and manage transactions. For instance, utility services fall under MCCs 4800 to 4999.
Other credit and debit card-related changes
IDFC FIRST Bank credit card changes
IDFC FIRST Bank announced changes effective from September 2024. These include:
Revision in the minimum amount due (MAD) payment from 5% to 2% of the principal balance.
The payment due date for IDFC FIRST Bank credit cards has been shortened from 18 days to 15 days from the statement generation date.
ICICI Bank debit card rules
ICICI Bank has revised its airport lounge access rules for certain debit cards. Starting October 1, 2024, customers will need to spend a minimum of Rs 10,000 in the previous calendar quarter to qualify for two complimentary lounge access passes. For instance, to be eligible for lounge access in the October-December 2024 quarter, one must spend Rs 10,000 in the July-September 2024 quarter.
First Published: Aug 06 2024 | 5:42 PM IST
