What are reward points and how can you use them? Today we are giving you the information in this news. The bank gives reward points to the customers using the credit card.
- The bank gives reward points to the customers using credit cards
- When you accumulate a certain number of points, you are given a reward or some benefit
- When you win a certain reward point, it’s important to redeem them
In today’s time many people use credit cards. Credit card payment is not only convenient, but you also get points along with cashback at times. Often people are not able to get their benefit due to lack of information about the points.
What are reward points and how can you use them? Today we are giving you information in this news. The bank gives reward points to the customers using the credit card. The purpose of the bank behind giving reward points is to encourage the customer to go for credit cards to the customers. If you prefer to use a debit card or credit card for doing regular and frequent transactions, you enjoy several benefits. Apart from being simple and convenient, one of the most popular benefits of using the card are the reward points. Reward points are points or credits credited to your credit for transaction volume.https://70c3563595d036208a48c5c60804e0af.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Every time a person uses a debit or credit card for a particular transaction, the debit or credit card company earns ‘X’ amount of money which is called ‘interchange’ fee. This fee is collected from the merchant outlet. This often varies from 1% to 2.5%, and the outlet may also consider negotiating a lower fee if the volumes are high.
Reward points are basically used to encourage you to use credit cards and debit cards more. Once you accumulate a certain number of points, you are given a reward or some benefit. These benefits are often in the form of discounts or cashback.
How to redeem reward points?
When you win a certain reward point, it’s important to redeem them. Generally, the reward points are easy to redeem. They can be redeemed online following a simple process. Online redemption is the most convenient way to redeem your reward points as it can be done without calling the customer care department of the bank. Most of the banks offer you home delivery for the products you buy online against the reward points.
You can also convert these points into air miles and use them to buy air tickets. If you travel more by air, then it can prove beneficial for you. Some loyalty programs offer a point-plus-pay option, in which you can use points and pay off the balance to get what you want. While some other programs waive the annual fee in exchange for reward points. Some banks allow you to accumulate reward points earned on credit and debit cards belonging to the same bank in a pool and you can redeem them together.
If you want to redeem your points with HDFC Bank, then you can follow these steps-
- Log in to your NetBanking Portal / HDFC Bank website account.
- After login, click on ‘Card’.
- Then click on the ‘Enquiry’ tab in the Debit Card section.
- When you move to the next page, click on the ‘Cashback Inquiry and Redemption’ tab.
- Select the account number for which you want to redeem the points. After that you can now redeem reward points.