How IDFC is beneficial after reward redemption fee?

[vasanth_ece]

Recently, IDFC introduced reward redemption fee of 99+GST which comes around Rs:117/- for every redemption. Even charges apply when using "Pay with points too".

This card gives from 0.75% to 2.5% as rewards. After applying the fee, it's become almost a percent less, like 1.5% (max.). This cashback is already provided by Axis Flipkart as cashback or Standard Chartered Smart, as flat 2% cashback without any issues.

Lets take an example of IDFC Wealth card which provides max cashback.

Say,we spend 4L per year in this card equally per month, which comes around =Rs:33333/- per month.For easy calc, assume all are online spends

30000 -- 3000* 6 =1800
3300 -- 33*10 = 330

So, total of 2130 points in month which translates to 25560 points in a year, worth 6390 cashback.

Now when we add 117 as fee , it'll be 6273.

6273/4L = 1.56% .. (After spending 4L,we are getting 1.56%..If i spend this much , i'll get 8000 in SCB Smart, 32000 points in Amex MRCC (~Rs:12160) )

As spends increases percentage amount increase.. So, i am not sure how this card beneficial ?. I am not only taking about this card..All cards which charges reward redemption fees?.. Further IDFC doesn't have any spend based reward offers too..comes less frequently like once a year..

Any views or am i miss something?

 

[Tosh]

Wealth has movie BOGO, Dream Folks, RSA, golf benefits, wallet load isn't excluded etc just to name a few and it is LTF

Your point of not being as rewarding on spends is true but i doubt if many use IDFC ccs as their main card for spends.

 

[vasanth_ece]

Wealth has movie BOGO, Dream Folks, RSA, golf benefits, wallet load isn't excluded etc just to name a few and it is LTF

Your point of not being as rewarding on spends is true but i doubt if many use IDFC ccs as their main card for spends.

Got it..May be this card is LTF, so no need to worry about spends.. But seems we may enjoy the perks on this card, but not really worth spending, as fee is totally damaging the reward %.

 

[SangEUD]

If you really want to maximize rewards on IDFC Wealth then use movie, lounge benefits as it covers more lounges compared to other banks.

Spend only for the month in which it will be higher to get 10X RPs. If you already have Super Premium credit cards then even this spend is not worth. Useful only for occasional merchant offers then.

 

[Pravnz]

The only reason i took this card is because of the Credit Limit. It gave me the highest CL of all the CC's I have. So, it will help to reduce my total Credit Utilization. Free RSA is an additional benefit.

 

[vasanth_ece]

Real problem comes once this card start imposing Annual Fee/Spend based waiver.

 

[vaibhav111vaibhav111 is verified member.]

Real problem comes once this card start imposing Annual Fee/Spend based waiver.

All IDFC credit card are LTF

 

[SangEUD]

Real problem comes once this card start imposing Annual Fee/Spend based waiver.

Even if it happens, earlier card holders will remain at LTF status

 

[brahmin_baniya]

I gave my credit card to family member he redeemed reward of 50 rs and my bank charged me 120 rs to redeem reward ,that is neagtive return of2 to 3% lol