Introduction: Hello friends today we go through how to redeem rewards on your credit cards. Banks that provide credit cards usually reward their cardholders with discounts, freebies, gifts and other types of deals. Let us first know what is reward points in credit card.
A guide for how to redeem rewards on your credit card
Reward programmes will act as an encouragement to customers for using their credit cards for bill payments, travel, dining, shopping and more. As a return, customers can collect all the points and later redeem them for a large variety of gifts and perks. Reward programmes have a value at a very less value compared to the value spent on the credit card, but it is only an advantage which is provided by the bank and is not a method to earn money back. But as soon as you have collected a sufficient amount of reward points, you will be able to redeem them for air miles, cash, merchandise, gift vouchers and much more.
Earning reward points
Every bank will provide different ways of earning reward points. Points which are earned will change as per the card depends on whether the credit card is a basic one or which has a high priority.
Credit card providers will offer the following reward point schemes
Few of the banks will welcome their customers into their bank by crediting their accounts with welcome points. You will be able to earn thousands of reward points from the day of card issuance. You can earn reward points by spending funds on your credit card within the first 90 days of issuance of the card.
Regular reward points
For each amount of Rs.100/- you are spending on your credit card, you will be able to earn a bunch of reward points. This will be ranging from 1 to a maximum of 10 reward points.
Accelerated reward points
You will be able to receive reward points when you are making spends on special categories like shopping at partner stores, restaurants, other expenses on dining, entertainment and many more. For instance, if your credit card is a travel card, you will be able to receive additional points when you are spending on bus tickets, flight tickets and train tickets. If your credit card is a credit card which is shopping-oriented, you will be able to receive additional points on reward purchases.
Purchases of high value
Spends made on purchases which are of high value like bookings on travel, jewellery, and holidays which can get you more reward points.
International reward points
Few credit cards will give you additional points for making spends on the credit card when you are overseas.
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You will be able to receive bonus points when you are spending a specific amount on your credit card. For instance, you will be able to earn one reward point for each amount of Rs.100/- spent using the credit card up to an amount of Rs.1.5 lakh per month. Any more amount which is spent in a month will give you twice the rewards for each amount of Rs.100/- spent.
Credit card providers will also provide reward points upon renewal of your credit card. You will be able to receive a good number of points for your loyalty towards the card.
Supplementary credit cards
You will be able to use supplementary credit cards for the members of your family. It is important that your family members should be of a minimum age of 18 years. Any reward points earned for the spends made on this credit card will be credited to the rewards account of the main credit card.
Redemption of reward points
You can redeem your reward points in several ways. This will be based on the redemption methods provided by the bank or the credit card provider. Before you choose to redeem your collected points, keep in mind that you will be required to check the below-mentioned points.
Minimum reward points required for redemption
As per the features of your credit score, you will be either required to have a minimum number of points for being eligible to redeem or sometimes, there will not be any requirement for minimum reward points. But each reward will cost you a number of points which you will need to be considered for the reward points redemption.
Almost all the reward points which you have collected will come with an expiry date. Banks will set this date to a maximum of 2 to 3 years from the date on which they are being earned. It is always suggested to check the reward points on a regular basis and then consider redeeming them online.
Fee for redemption
Generally, there is a fee which is associated with the redemption of reward points. This particular fee would be up to an amount of Rs.100/- and this will be charged for handling and processing the reward points.
You will have an option to redeem your reward points for a gift of your wish and you can choose it from the rewards catalogue of the bank if available. Banks will provide several methods which make it comfortable for the customers to convert their reward points into gifts rapidly without facing any difficulty.
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Reward points redemption modes
You can consider redeeming your reward points in a simple manner by making use of your online net banking account. To do this, you will just have to register for net banking on the official website of your bank. For this, you will have to use your login credentials like your User ID and password. You will have to get your credit card linked to your savings to account for getting access to the information of your credit card. Once you are done with this, you can see the statements of your credit card, make bill payments, see the summary of your rewards and redeem your reward points. You can also access the rewards catalogue of the particular bank to see and select the gift you like the most,. You can select your rewards as per the points you have collected. Once you place the order and the merchandise or any gift which you like, it will be delivered to your doorstep as per the postal address which has been registered. It will take a maximum of 10 days for your order to get processed and delivered. Any charges for handling will be charged on to your credit card.
You can also be getting in touch with the customer support of the bank through phone or email. Through phone, a customer care executive will guide you through your reward points balance and also through the redemption process. You can place your redemption request with the representative. For this, you will be required to provide the details required and the product you have selected. You may also be required to download the redemption form, fill it and then email it to the customer support. It may take up to 10 working days for your order to undergo processing and delivery. Any charges for handling will be charged on your credit card.
You can also consider downloading the form of rewards redemption or get one form from the branch of the bank. Fill it completely and then mail it to the postal address of the credit card department of the bank. From the reception date of the form, it will take up to 10 to 15 working days for your reward to be delivered to your registered address. The points will be decreased from your reward point balance and the voucher or the merchandise will get delivered to you.
Few of the banks will get partnered with a number of retail stores and online stores where the customers can do the shopping and then consider paying for their purchases by making use of their reward points. Any balance amount which is still there on the purchase will be charged to the credit card.
For what can you consider redeeming the reward points?
Banks will provide several rewards to select from their rewards programmes, few more than other banks. Below are a few of the rewards you can consider redeeming your reward points for.
How to redeem rewards for Merchandise
You can have a reference to the rewards catalogue offered by your bank to check what are the products which are on offer and are matching with your reward points balance. Select merchandise which you would like which can either be a single product or multiple products. Merchandise can also span through several categories which include
- Smart phones
- Electronics and appliances.
- Decorative materials for the home.
- Health and wellness
- Accessories for travel
- Personal care.
- Tickets for the movie.
- Bus and flight tickets.
- Hotel reservations.
- Mobile recharges.
- Gift cards
- DTH Recharge.
How to redeem rewards for Gift vouchers
You can consider redeeming your reward points for gift vouchers which have a value ranging between Rs.100/- to Rs.5,000/- or more. You can use gift vouchers for shopping at any respective partnered store or any online store. Categories of the gift voucher will consist of books, apparel, groceries, food and beverages, lifestyle and many more. By using a gift voucher, you can consider redeeming it for items or products from the store of any brand. Any amount which is remaining can be considered paying by any means you wish like debit card, credit card, cash and many more.
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How to redeem rewards for Air miles
Cardholders can also consider converting their reward points into Air Miles with airlines which are partnered. Fe of the airlines which are participating in reward programmes are
- Kris Flyer- Singapore Airlines
- Air Canada\
- Air India
- Virgin Atlantic
- Delta Airlines
- Frontier Airlines
- American Airlines
- Southwest Airlines
- Cathay Pacific
- Qatar Airways
- Emirates Airlines
- Etihad Airlines
- British Airways.
How to redeem rewards for Room Miles
Few banks sometimes get into collaboration with hotels for their rewards scheme. Under there rewards programmes, customers can consider converting their reward points into room miles and then redeem those points at the hotels. Few hotels which are participating in this rewards scheme are Marriott, Hilton, Hyatt, and Starwood.
How to redeem rewards for Cashback
You can consider converting your reward points for cashback which you can use either against your credit card bill or can also be used for shopping using your credit card. Cashbacks will be great for decreasing the outstanding balance amount of your credit card.
You can also consider using your reward points for making a donation to the charity which has been listed with your bank. You can donate to sponsor mid-day meals or even education for children. You can also consider contributing to the disabled, elderly, blind and also to the poor. Charities which are under the reward programmes will also include contributions to the environment, health, employment, women, traditional employment and youth. The reward points which you have earned will be converted into cash and then they will get donated to the charity of your wish.
Transferring reward points
Few of the banks will provide an option to the customers to transfer a specific limit of reward points which are earned to their beloved family members and friends who also have the same bank credit card. Axis bank is one of those banks which provides this option to transfer reward points as a gift to a family member who is also a customer of Axis Bank.
Reasons why you lose out on rewards offered in credit cards
Most of the cardholders will frequently get confused about reward points on credit card. Mainly, when it comes to hotel or flyer loyalty reward points. This means that cardholders are generally missing out a lot of benefits and indirectly, some real money. As per a survey conducted by NextAdvisor, many credit cardholders will never understand this system of reward points which are offered by the bank through credit cards. Almost 50% of the people who are interviewed seem like they are not aware of these advantages of the reward points system. When it comes to earning and using AirMiles, loyalty programmes provided by hotels, and rewards on credit cards, there is no awareness. Up to 47% of the people were being surveyed who said that they do not know how many reward points they have earned so far. At the same time, 35% of the people don’t even know about their frequent flyer miles. Moreover, 35% do not even keep a count of their reward points earned.
Most of the cardholders will not even take some time out of their busy lives to have the collection of the reward points sorted. This population is of 36% of the people and these are the ones who fly often, 33% have loyalty programmes for hotels and 24% have reward points on credit cards. As per Julie-Myhre-Nunes, this problem starts from two main sources. Credit card providers will not give a clear clarity on reward points and how many does the cardholder have collected and also how to use or redeem them. Another point is that the people who frequently apply for the credit card which will not match their financial requirements.
Below are some of the tips to be more aware of the reward points
- You should make sure that you are reading the fine print which will come with the credit cards. Irrespective of how boring it is, you should read all the terms and conditions mentioned in that.
- You should also ensure that the rewards program will suit their financial requirements and lifestyle. If you are not a person who flies frequently, then you should never go for a card which offers benefits on flying or AirMiles.
- If you have a rewards account which you are not that sure of, then you should make a note of what is available by contacting the customer service of the bank. This will help you to be more aware of the type of inventory they possess in the form of a credit card.
Banks will offer you with catalogues which will have the products or merchandise details which are available for redemption of reward points. You can find these rewards catalogues online on the official website of the bank or on the official rewards website of the bank. Banks will sometimes give a separate website to the rewards scheme they have. This will make it simple and also more comfortable for you to handle your collected rewards and then redeem them. Rewards catalogues will consist of several items, donations, vouchers and miles using which you can redeem reward points.
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