HDFC Bank, India’s largest credit card issuer, deeply understands the trends in credit card use. And it can spot the growing categories and the misused ones by a mile when it comes to the time to act. Now, HDFC Bank is putting some new curbs on points earning in their various categories for their credit card ecosystem.

New curbs are coming on HDFC Bank Credit Cards across various categories.

In a new policy change, which is currently being notified to customers, there will be a cap on various categories of spending:

• Effective September 1, 2024, Reward Points earned on Utility transactions (MCC Code 4900) will be capped at 2000 per calendar month.
• Effective September 1, 2024, Reward Points earned on Telecom and cable transactions (MCC Code 4812, 4814, 4899) will be capped at 2000 per calendar month.
• If you make education payments through third-party apps like (but not limited to) CRED, Cheq, MobiKwik, and others, you will not earn Reward Points for these spends. However, education payments made directly through college/school websites or their POS machines will earn Reward Points. The MCC Codes for Education are 8211, 8220, 8241, 8244, 8249, and 8299.
  • HDFC Bank does not grant points on education-related transactions on BizBlack Metal Card, BizPower, BizGrow, BizFirst, Business Regalia, Business Regalia First, Business Money back, CSC small business money back, Paytm Business, Flipkart Business, Retailio, Best Price Save Smart, Best Price Save Max, Swiggy HDFC Bank Credit Card and Pinelabs Credit Cards.

This notification applies to all HDFC Bank Credit Cards that earn rewards, including co-brand cards such as Swiggy and TataNeu and their ones, including Infinia.

New limits on redemption for Jewellery and Apple Goods, as well

HDFC Bank Credit Cards also allow holders of Infinia Credit Cards to redeem reward points for Tanishq Jewellery and Apple products using the Smartbuy portal. However, these will now be limited as well.

With effect from October 1, 2024, Reward points redemption for Tanishq vouchers will be capped at 50,000 reward points per calendar quarter for Infinia cards. Quarters will be defined as Jan/Feb/Mar, Apr/May/Jun, Jul/Aug/Sep and Oct/Nov/Dec.

Similarly, effective October 1, 2024, redemption for Apple products will be limited to one product every calendar quarter. This could be as small as an Apple polishing cloth or as big as a MacBook Pro, but just one item is allowed.

Recap of other upcoming changes

As of August 1, 2024, a 1% fee on transaction amount will be levied on rental transactions done on any applicable merchant for the month using an HDFC Bank Credit Card. The fee will be capped at INR 3000 per transaction.

These are reasonable changes and should not impact people who earn points in the ordinary course. Manufactured spending is a different ball game, and this will hurt those folks as intended. For instance, to earn 2000 points on Infinia, you’d have to spend INR 60,000 on your electricity or telecom bills. Those who spend money on home electricity or broadband don’t need anything beyond this.

Bottomline

HDFC Bank Credit Cards will implement new limitations on earning points via their credit cards effective September 1, 2024. The limits will be placed on earning points for utility and telecom/cable spending. A fair use clause is also being implemented for redemptions of Apple products and Tanishq Jewellery vouchers, effective October 1, 2024.

What do you make of the changes to HDFC Bank Credit Cards effective September 2024?

[Apply for a new HDFC Bank Credit Card]

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