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Devaluation Revision in the HDFC Bank Credit Card Reward Points Program & Fee structure w.e.f 1st January 2023
- Thread starter bugmenot
- Start date
makes sense.
but this capping wont affect users who have grocery shopping of only a few thousand rupees in a month. i doubt anyone would spend 60k on groceries (non commercial use).
so mostly for people who are using grocer's machine for 'spot swipe and get cash'.
govt has less mdr so that might be the reason.
as i said in my previous post in another thread related to rent rewards devaluation, banks will remove rewards from all 'essential' spends - rent, nps, tax, education, fuel, etc - because the user is going to pay them even if he doesn't get any reward.
banks want to make you spend on items and services which you would not spend on if not given any rewards.
and banks are a cartel: one bank will not take advantage of other bank closing rent and other rewards. it will also follow suit. axis will also do it sooner or later.
Very sad but true, particularly your last 2 points (bold emphasis, mine)
1)have you read the rewards points for other than regalia and infinia.
(Reward Points earned on grocery transactions will be capped at 1000 Reward Points per calendar month) for millennia card as per your view its 100k monthly grocery, what you going to say? millennia card users are richer than infinia? those who want rotate money plenty of loops are available.
2) govt transactions & education are huge amount can be done in single transaction so maximum limit can be used the card holder
3) no Rewards points for "essential" what about train,bus, flight tickets? are not essentials?
4) bank cannot guide or direct us what and where we spend because there is cards available in market we can use that
5) banks are not cartel they have HUGE marketing competition in our country, so they will take advantage and get more customers
Final thought: my words are not against your post, its pure profit maximization strategy by new artificial intelligence era, as their system may be reported most card usage platforms in current fin year is LOW MDR transactions , so they reduced or no rewards on LOW MDR transactions. but they want us use the card and convert emi or interest trap, HDFC is GREEDY, TIME will teach them when they loosing customers and placed in lower position in largest card issuer in india.
tempmirzaa
TF Select
Still axis ace best credit card ever 2% offline and online cashback for utility bills 5% cashback
Does Axis ACE gives 2% cashback on Rent payment? or any reward point on rent payment?
The way people are finding new tricks and techniques to achieve the spending milestones, waiving off annual fee and earning reward points this is not very surprising that all the banks are taking such steps. Using something or even optimizing the usage and exploiting something are two entirely different things.
Rent payments made via Payzapp are considered as insurance. Will the reward points be awarded here? @TechnoFino
Hit or miss, no guarantee... if they count it insurance, you'll get rp according to insurance category capping. But if they count it as rent, no rp
akshayhs
TF Legend
Payzapp is getting revamped. Better check after public access to the new app is given
Mcc doesn't depend on payzapp. Redgiraffe is registered under insurance category. That won't change.
Less than 2% of all credit card users actually care so much about reward points. Banks dont care about such leechers, and why should they. Banks dont want to entertain those who are hopping between credit cards for best offers. When customers are allowed to do such things in their self interest, why shouldn't banks opt for their profit maximisation strategies?
I see no harm in banks doing this, as this was bound to happen. No bank would knowingly go against the big banks, knowing that any offer that they do extend over their cards, would majorly be used against them by bad actors in the market and in the end they'd be taking a hit on their profit margins.
Expect other banks coming out with similar directions in the next 2 months.
Deleted member 5552
TF Legend
That's great!!! I already said goodbye to HDFC by cancelling MoneyBack and Tata Neu card in October 😆😆
No one of the bank follow hdfc as they having own strategy and bank is nothing without our deposits , when customers thinks the bank useless and bank see us a LEECHERS , customers have other chances , here I want to post again the BANK is nothing without deposits, and they don’t care, they don’t entertain , who told them do that, they want customers including leeacher, MARK MY WORD hdfc will sink in the same day of next year because of their poor & greedy strategy.not only credit card entire banking performance.
That too with a big rod on all cc enthusiasts🙁
For your added security we have capped the transaction limit when paying your Credit Card bills via external websites/ App using HDFC Bank NetBanking. Per t×n limit is Rs.50,000. To pay in excess of Rs 50,000 in one txn, we recommend adding the Credit Card A/c as a beneficiary in NetBanki
This was bound to happen but what is the reason of limiting reward point redemption to 75k for DCB when it is anyways limited to 70%.
While many restrictions are understandable, it is also the banks that are to be blamed (along with CC Abusers). When it suited them (in COVID) they played along and let people transfer money in disguise for rent. Now when it does not make sense they are creating restrictions. One should know that Credit Cards are now commodities and customers can shift loyalty instantly. DCB and Infinia were the go to choices for years and now no one wants them. Everyone is looking toward Magnus.
When AXIS devalues others will come up. However, AXIS would want to be number 1 in CC and it will be foolish if they devalue anytime in the next year.
But HDFC has lost many long-time consumers and they are ensuring that they don't return back.
While many restrictions are understandable, it is also the banks that are to be blamed (along with CC Abusers). When it suited them (in COVID) they played along and let people transfer money in disguise for rent. Now when it does not make sense they are creating restrictions. One should know that Credit Cards are now commodities and customers can shift loyalty instantly. DCB and Infinia were the go to choices for years and now no one wants them. Everyone is looking toward Magnus.
When AXIS devalues others will come up. However, AXIS would want to be number 1 in CC and it will be foolish if they devalue anytime in the next year.
But HDFC has lost many long-time consumers and they are ensuring that they don't return back.
1) you missed the point here. all i wanted to highlight was that genuine spenders on grocery won't be affected at all. about millenia guys richer than infinia, better go and ask hdfc about their calculations.
2) banks are not stopping you from using cc for edu and govt, just that the rewards are not being given. why would they give rewards, if the same spend will definitely happen from their debit card/net banking. ppl would still want to use cc for these spends for interest free period.
3) a person considering 2nd AC/1st AC might want to spend a little bit more on flight ticket if he is getting discount because of credit card. thats why more cc offers are there on flights as compared to railways, airport lounges than railway lounges. banks will want to increase your spending habits, while you will be happy to be leading a more luxurious lifestyle. once people get hooked on to spending more, these offers will also go away, as seen on zomato, swiggy and eazydiner.
4) i never said banks are forcing or directing you to use cc. but they run campaigns to influence you into using a particular product of theirs that is more beneficial for them than it is to you.
5) it is naive to think that banks don't form 'cartels' for specific goals.
one example that comes to my mind is LIBOR rigging scandal. read about it. for profit maximization, hdfc and axis would have jumped to get the spends and share of wallet of customers of icici and eterna when they stopped rent rewards. but instead of that, they chose to take a hit themselves by introducing their own devaluation, so that the end customer is at a loss.
and rents, edu, govt are not manufactured spends so the customer is at a loss for no fault of his (unless someone is actually doing fraud).
let's not blame ai. it doesnt take AI to find out which customers are rotating money. they don't use ai where problems can be solved using simple sql and excel sheets.
low mdr is one of the possible reasons highlited by otehr members which is a plausible explanation.
i don't know you personally, so i didn't take it personally. but i never knew that calling out banks' behaviour could offend someone so much. i think i need to be careful of the fact that there are bank executives also on this forum 😅