Banks that offer credit cards generally reward their credit card holders with gifts, freebies, discounts and other deals. Reward Programmes encourage customers to use their credit card for bill payments, shopping, dining, travel and more. In return, customers can rack up points and redeem them later for a variety of perks and gifts. Reward points are valued at much lesser than the value actually spent on the credit card, but it is only a perk offered by the bank, and is not a way to earn your money back. But once you have accumulated enough reward points, you can redeem them for air miles, merchandise, cash, gift vouchers, and much more.
Each bank offers different methods of earning points. Points earned will vary between different cards based on whether the card is a basic credit card or one that has high priority.
Credit card companies usually offer the following schemes:
|Reward Points||How to earn points||When will it be credited|
|Welcome Points||By becoming a cardholder||Upon Paying annual fees or joining fees|
|Regular points||By spending on the card||After the purchase is made|
|Accelerated Points||By spending on special categories||After the purchase is made|
|High-value Purchase||By spending on expensive items or costly travel||After the purchase is made|
|International Points||By spending overseas||After the purchase is made|
|Bonus Points||By spending over and above the required limit||After the purchase is made|
|Loyalty Points||By renewing your credit card||Upon paying the renewal fees|
|Supplementary Cards||By spending on the supplementary card||After the purchase is made|
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.
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.
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.
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.
A reward point is a perk offered by banks to credit cardholders as a reward for every time they spend on their credit card. You can collect these points as you spend on your credit card. Once you have collected enough points, you can redeem them for gift vouchers, merchandise, air miles and more.
Simply shop with your credit card to earn points. You can earn points for transactions made on your card. Generally, banks will reward you for every Rs. 100 you spend on the card. You can pay your bills with your credit card, shop in stores, shop online, pay for travel and international expenses and earn reward points.
Each bank sets a different minimum requirement to be able to redeem your points. Some banks do not have a minimum limit on the points. But to redeem them, you should have collected enough points to be worth something available in the catalogue. Usually, 500 points will fetch you a basic product or make you eligible to redeem it for cash back.
Yes, unless specified by the bank. Reward points will expire within 2 to 3 years from the date on which they were earned. Check with your bank regarding the policy on reward point’s expiration date. In other cases, if you do not use your credit card for a period of 6 months or more, then the points collected will lapse.
Most banks do not allow you to cancel a redemption request. Once you have requested that your points be converted to miles or a gift, you will not be able to cancel it.