Credit Card Reward Points: How to redeem Credit Card Reward Points

When you look for a credit card or you are considering applying for a credit card, the one thing you will look at is the reward points it offers and what you can redeem those points for. When a bank offers you a credit/debit card, it talks at length about reward points. In this article, you will know key things about Credit Card Reward Points.

You can earn points on your credit card by paying for your purchases or bills with the card. Every time you swipe your card, reward points will be credited to your rewards account. Depending on the type of card you hold, you can earn welcome points or welcome miles. Spending a set amount of money in a year on your credit card will also attract reward points.

Every time you use your credit for a transaction, the card company earns an ‘interchange’ fee from the merchant outlet. It can vary from 1% to 2.5%. The outlet can negotiate a lower fee if its volumes are high. Apart from the ‘interchange’ fee, the card company makes money from the annual fee it charges from cardholders and interest earned on rolling over unpaid bills. They share a part of earnings (mostly from interchange fee) with the cardholder in the form of reward points to encourage him to use it more frequently.

Reward Points: Value

If your credit card bill shows 5,000 points against purchases made in the past one year, what is the value of these points in monetary form?

  • One reward point does not equal one rupee. In fact, it is much less than that, in most cases (20-30 paise).
  • “The value can vary from issuer to issuer. It can be as low as 10 paise per point and as high as Re 1 per point,” says Anil Ramachandran, head, credit cards, IndusInd Bank. He says IndusInd Bank offers Re 1 benefit per point earned on its Signature Credit Card.

credit card reward points

Reward Points: Expiration Date

  • Reward points can expire after a period.
  • The period can vary from one-three years.
  • Usually, banks deduct the accumulated unused points at the end of every financial year.

Reward Points: How to redeem

Online redemption is the most convenient as it can be done without calling up the bank’s customer care department. Most banks offer home delivery for products purchased online against reward points. Different banks have different process of redeeming credit card reward points.

  • For HDFC Bank,
    • Login to your net banking account on the HDFC Bank website, then click on “Credit Cards”.
    • If you haven’t already registered your credit card, you will need to do this. Click on “Register new card” which can be found on the side navigation bar. After you have registered your card, click on “Redeem Reward Points”.
    • Select your credit card and click on “Continue” then Select the “Points Range” and your “Item Category”. Choose the items you like and add them to your Shopping Cart.
    • Once you have finished shopping, click on “View Shopping Cart”. On the Shopping Cart page, you can edit your items and the quantity and then, 
    • Click on “Redeem” to complete the process. A Redemption Order Number will be displayed, you can note it down.
  • For SBI Bank,
    • Visit SBI’s Credit card reward page.
    • Select your “credit card” then Select the “Points Range”, “City” and your “Item Category”. Choose the items you like and add them to your Shopping Cart.
    • Once you have finished shopping, Click on “Redeem”.
  • For ICICI Bank,
    • Login on the ICICI Bank internet banking portal using your ID and Password.
    • Go to the Credit Cards section.
    • Click on ‘Reward Points’ and then ‘Redeem Online’.
    • Select an item or voucher from the drop-down menu and place the order.

You can also redeem the rewards by calling ICICI Bank Customer Care Number- 1800 200 3344

Click here to Get instant approval for a credit line online of up to ₹ 5 Lakh

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