How to Redeem Credit Card Reward Points

What are the Types of Reward Points?

The following are the different types of reward points offered by credit cards:

1. Rewards points cards: On spending each rupees spent the card offers at least one point while some allow earning and redeeming rewards as cash back or points.
2. Travel rewards cards: Enables users to earn travel rewards points or "miles" that come with travel perks which are often co-branded with hotel chains or airlines for brand loyalty benefits.
3. Cashback cards: These cards offer cashback on purchases in the form of bonus category, flat-rate, or tiered rewards cards.
4. Joining Rewards: By spending within a specified number of days, some credit card issuers offer credit rewards with welcome points to the customer.
5. Regular Rewards: These rewards are offered for certain purchases, which is the base rate for rewards, and that will be mentioned in the credit card statement.
6. Accelerated Rewards: These reward points are offered when spending on specific categories such as shopping, grocery, dining, travel, etc., for example bonus points can be earned at partner restaurants if dining-oriented card is used.
7. Milestone Benefits: Milestone rewards can be earned which are bonus rewards that are offered on achieving a certain spending threshold within a specified time duration (usually an anniversary year).
8. International Rewards: By spending on the card while abroad, customers can earn international rewards on this card.
9. Bonus points: For spending a certain amount, bonus points can be earned, for example, per Rs.100 spent customers can earn up to 5 reward points and it will double for every Rs. 100 spent, if customer spends more than Rs.1.20 lakh using their credit card in a month.
10. Renewal points: Loyalty points can be earned on renewing their credit card with the same issuer credit card customers.
11. High-value Purchases: Reward points earned on spending made on this card are credited to the main credit card’s rewards account and supplementary cards can be availed for those family members who have attained 18 years of age.

How To Earn Credit Card Reward Points?

The following are the steps to earn credit card reward points:

1. A reward point can be earned every time the card is used for making any purchases.
2. For each card, the rate of earning credit card reward points is different, for example Card A provides one reward point, while Card B provides five reward points for the same purchase.
3. On specific categories, Rewards credit cards offer accelerated rewards, for example a base reward rate of 2 reward points is offered by Karur Vysya Bank SBI Platinum Credit Card per Rs.100 spent on your credit card and offers accelerated reward points of 10 on your grocery, departmental, and dining spends.
4. On reaching milestone spends in a year, some credit cards may give you bonus reward points, for example an additional 5,000 reward points on annual spends of Rs.8 lakh by using the HDFC Regalia Credit Card.
5. Depending on the basic and high-priority credit cards, the reward points may vary.

How to Redeem Reward Points?

The following are the ways to redeem reward points:

Online

Here are the ways to redeem rewards through online mode:

Internet Banking:

Customers can use internet banking to redeem reward points by the following steps:

1. Log in to the website using the customer ID and password
2. Find various choices for reward redemption such as vouchers, merchandise, or cash credit (if applicable)
3. Select from the above-mentioned options as per requirement
4. It will take approximately ten business days for the order to be processed and delivered

Rewards Website:

Here are the steps to redeem the reward points of the customers through the rewards website:

1. Sign up for the program by visiting the registration page
2. Select the appropriate product from the dropdown
3. Fill in the relevant details to register
4. Email will be received confirming your user ID and password, after successful registration
5. Visit the ‘Redeem Now’ section after logging in with customer's our user ID/ customer ID and password
6. Pick the reward of choice from various categories
7. Confirm the redemption after adding the rewards to the basket

Mobile app:

Here are the steps to redeem reward points using mobile application:

1. Download the bank mobile app
2. From the Menu to view your points balance, click on the ‘Rewards’ tab
3. Go to the ‘Redeem Now’ section
4. Click on 'Rewards Store'
5. From different categories, select the applicable reward, add to basket, and confirm the redemption.

Offline

Here are the ways to redeem reward points through offline mode:

Customer Care:

Here is the detail about how to redeem reward points through customer care:

1. Contact the credit card customer care of your lending institution by phone or email to redeem reward points.
2. The redemption process will be explained by the customer care executive, and they will update the customer about the rewards point balance.
3. Customers can put down their request for redemption with the representative.
4. Required details and the information about the rewards chosen have to be provided by the customers.
5. Customers can also download the redemption form also.

Post:

1. Write to the credit card issuer’s customer care to redeem the reward points.
2. Provide the details about the credit card such as the desired reward option, and the number of points you want to redeem in the post.
3. Partner-store: Reward points can be redeemed at retailers and petrol pumps that are partnered with some credit card companies. By visiting your credit card’s website, find out which retailers are included and how to redeem your rewards points.

Factors Affecting Reward Points

The points you earn will depend on the value of your transaction, the type of card you have and the bank which has issued the card and sometimes, also on the place where you have carried out the transaction. However, there are other factors which affect the overall points you earn and their value.

1. Card variant - Card holders with a basic card variant will earn about one or two points for each transaction of around Rs 100 to Rs 250. However, cards that are of a higher variant, i.e. premium or super premium cards, will easily fetch much more points against purchases. For instance, for every Rs 200 that is spent on weekend dining on the Axis Bank My Zone card, the card holder gets to earn up to 40 rewards points. While basic, entry-level cards charge a nominal fee, premium and super premium cards will carry a significantly higher annual and joining fees.
2. Co-branded Cards - Banks and card companies launch co-branded credit cards in association with major stores, brands, fuel providers, airlines, etc. Co-branded cards fetch reward points which may be as much as 5 to 10 times higher as compared to most other cards. For example, in case of airline co-branded cards, cardholders can avail extra reward points and discounts when they purchase tickets of any partner airline with their co-branded card.
3. Where You Spend - The number or value of reward points that you will earn also depends on where you use your card. Using your card to pay for your electricity bill will earn you lesser points than it would when you swipe it at a restaurant to pay for a meal. The reason behind this is that the restaurant may be providing the your credit card company with a higher interchange fee in a bid to increase sales, whereas that may not be the case for a utility services company such as the power corporation.
4. Special Occasion Spending - If you swipe your card to make purchases during special or festive occasions, you can get bonus points. For example, if you swipe your card on Christmas, you are entitled to extra bonus points. Some banks also offer bonus points to premium card holders on joining.

What to Remember About Reward Points?

Here are the following details of that must be remembered about reward points:

1. Minimum Threshold for Reward Redemption: ensure that you have enough points before reward redemption and check for the minimum requirement with the credit card issuer that will help in making the best out of the reward.
2. Expiration Date: Reward points usually expire within two to three years and hence it is important to keep track of the reward points and redeem them before they expire.
3. Redemption Fee: A small fee of Rs.100 may be charged by the bank and after payment customers can change their reward points into gift vouchers, air miles, or other rewards as per customer’s choice.

Benefits of Credit Card Reward Points

The following is the list of benefits of credit card reward points:

1. Few credit card providers allow their cardholders to convert their reward points into cash.
2. Depending on the type of card you hold, you can use your reward points to pay your annual fee.
3. Cardholders can use their reward points to make flight or hotel bookings.
4. Most credit cards also allow the cardholders to get a cashback using their reward points.
5. Credit card providers have a catalogue where cardholders can redeem their reward points to buy select products.

Get in touch with your credit card provider and educate yourself about the reward program available on your card.

What Can You Redeem the Reward Points For?

Browse the bank’s catalogue for issuing credit card reward points to see what products or gifts are offered in exchange for reward points, which could be accessories, clothes, books, beauty products, travel merchandise, and stationery. High-tech products like electronic gadgets are also available.

The following is the list of some popular merchandise items.

Gift Vouchers: This is a great way to obtain extra perks on loyalty as the reward points can be redeemed for e-vouchers of merchants, popular brands, or restaurants.

Air Miles: Some credit cards give air miles instead of reward points to the customers while some cards allow conversion of the accrued points to air miles and Air miles can be redeemed for air ticket purchases or to get a discount on air tickets.

Cashback: Customers convert the reward points to cashback that can be used for payment of outstanding balance on your credit card or for shopping with the credit card.

Donations: Reward points could be redeemed to donate to charity houses listed with banks and the charities you want to donate to. An equivalent amount of cash can be converted from the reward points to be given to the charity.

Transfer Points: A certain amount of reward points earned for their family members or friends can be transferred as allowed by the banks, provided they also hold credit cards from the same bank, for example Axis bank allows this.

How Can You Earn Maximum Credit Card Reward Points?

The following are the ways to earn maximum credit card reward points:

1. Keep track of expiry of the reward points: plan accordingly to avoid losing the reward points as they have a two-year expiration date while some card cards do offer reward points that do not expire.
2. Use a card that suits your lifestyle and financial requirements: Ensure that the reward system is suitable for your financial needs and their lifestyle, for example, customer must opt for a card that provides maximum benefits on dining who loves to eat out at restaurants.
3. Redeem for maximum advantage: Make sure to select the card that provides maximum conversion rates as it may vary depending on the card. Depending on the category and specific products, the reward redemption rate will also change and hence it is vital to check the rates before redeeming.
4. Do not spend only for earning rewards: Make sure not to overspend, as rewards on cards are bonuses as overspending will make it difficult to hefty charges on credit card bills.

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