Business: 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 point limit Starting September 1, 2024, there will be a limit of 2,000 reward points per calendar month on utility transactions. These transactions are identified by Merchant Category Code (MCC) 4900.
Charges on utility transactions
Prior to this limit, HDFC Bank had levied a 1% fee on utility transactions for consumer credit cardholders, effective August 1, 2024. This fee is applicable on transactions above Rs 50,000. For business credit cards, a 1% fee is applicable on transactions above Rs 75,000, with a maximum of Rs 3,000 per transaction. This is aimed at discouraging the use of consumer cards for business transactions, which often exceed the Rs 50,000 limit. For most individual customers, this fee is not a concern as normal utility bills are less than Rs 50,000. Further, the bank clarified that insurance transactions do not fall under the utility category, so they will not be charged this fee.
Reward points limit on telecom and cable transactions
Like utility transactions, telecom and cable transactions will also have a limit of 2,000 reward points per calendar month. These transactions are tracked through MCC 4812, 4814 and 4899, this change will be effective from September 1, 2024. According to HDFC Bank, the limits on both utility and telecom transactions are aimed at promoting proper usage of credit cards. Some individuals have been misusing personal credit cards to pay for business expenses or bills of others to earn reward points, meet spending limits or qualify for offers. These new limits will help prevent such misuse and ensure that everyone uses their credit cards within reasonable limits. No reward points on education payments through third-party apps From September 1, 2024, education payments made through third-party apps such as CRED, Cheq and MobiKwik will no longer earn reward points. However, payments made directly through the educational institution’s website or POS machine will still earn reward points. These transactions fall under MCC 8211, 8220, 8241, 8244, 8249 and 8299. HDFC Bank has also imposed a 1% fee on education payments made through third-party apps from August 1, 2024. This fee is capped at Rs 3,000 per transaction. However, there is no fee on payments made directly to educational institutions, encouraging customers to use official payment channels.
Limit on redemption of reward points for Apple products
Infinia credit cardholders currently enjoy the freedom to redeem their reward points for multiple Apple products through the HDFC SmartBuy platform. However, from 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 relates to the redemption of reward points for Tanishq vouchers. Starting October 1, 2024, there will be a limit of 50,000 reward points per calendar quarter for these redemptions. Like the Apple product redemption cap, this measure is intended to more effectively regulate the use of reward points. Various banks made changes related to credit cards Various banks made changes related to credit cards
