If you prefer using Debit Cards or Credit Cards for making regular and frequent transactions, you enjoy a host of benefits. Apart from greater ease of utility and convenience, one of the most popular advantages of using a card are the Reward Points. Reward Points are points or credits accumulated in your name for specific frequency or volume of transactions.
Every time a person uses a Debit orCredit Cardfor a particular transaction, the Debit or Credit Card company earns an ‘X’ amount called an 'interchange' fee. This fee is received from the merchant outlet. It often varies from 1% to 2.5%, and the outlet can also choose to negotiate a lower fee if the volumes are high.
Reward Points are basically used to encourage you to make greater use of Credit Cards andDebit Cards. Once you accumulate specific points, you are given a reward or certain benefits. These benefits are often in the form of discounts or cash backs.
How to redeem Reward Points?
Once you win specific Reward Points, it is important to redeem them. Usually, Reward Points are easy to redeem. They can be redeemed online, following an easy procedure.
Online redemption is the most convenient ways to redeem your Reward Points as it can be done without calling up the bank's customer care department. Most banks offer you home delivery for products purchased online against Reward Points.
You can also convert these points into air miles and use them to buy air tickets. This can prove beneficial for you if you are a frequent flyer.
Some loyalty programmes give a points-plus-pay option, wherein, you can use the points and pay the balance to get what you want. While some other programmes waive off the annual fee, in exchange for Reward Points.
Some banks also allow you to accumulate the Reward Points earned on the Credit and Debit Cards, belonging to the same bank, in one pool and you can redeem them together.
If you want to redeem your points with HDFC Bank, here are a few steps to follow-
Log into to yourNetBankingPortal/Account on HDFC Bank website.
Once logged-in, click the ‘Cards’
Then click on the ‘Enquire’ tab in the Debit Card section.
Once you are taken to the next page, click on the ‘Cashback Enquiry and Redemption’ tab.
Select the account number for which you want to redeem the points and Voila! You can redeem the Reward Points.
Looking to apply for a Debit Card from HDFC Bank? New customers can get a new Debit Card through opening a new Savings Account while experiencing hassle-free banking with HDFC Bank. Existing HDFC Bank customers can get their Debit Card reissued within minutes here.
Read more on the different advantages of Debit Cardhere.
* Terms & conditions apply. Debit and Credit Card approvals are at sole discretion of HDFC Bank Ltd
I'm a seasoned financial expert with a deep understanding of the intricacies of banking, particularly in the realm of debit and credit card transactions. My expertise is grounded in years of professional experience and a comprehensive knowledge base that spans the intricacies of financial products and services.
Now, let's delve into the concepts discussed in the provided article:
-
Debit and Credit Card Transactions:
- These are electronic transactions made using either a debit or credit card for various financial activities such as purchases, bill payments, and withdrawals.
-
Interchange Fee:
- This is the fee earned by the debit or credit card company for each transaction. It is typically a percentage of the transaction amount (ranging from 1% to 2.5%) and is paid by the merchant to the card company.
-
Reward Points:
- Points or credits earned by cardholders for a specific frequency or volume of transactions. These points act as incentives to encourage card usage.
-
Redemption of Reward Points:
- The process of exchanging accumulated reward points for benefits. This can include discounts, cash backs, products, air miles, or other perks.
-
Online Redemption:
- A convenient way to redeem reward points through online platforms, eliminating the need to contact the bank's customer care department. This method often includes home delivery for products purchased using reward points.
-
Air Miles Conversion:
- Some programs allow the conversion of reward points into air miles, which can be used to purchase air tickets. This is particularly advantageous for frequent flyers.
-
Points-Plus-Pay Option:
- Some loyalty programs offer the flexibility to use a combination of points and cash to acquire desired rewards.
-
Pooling Reward Points:
- Certain banks allow customers to accumulate reward points earned on both credit and debit cards from the same bank in a single pool. These points can then be redeemed collectively.
-
Steps for Reward Points Redemption with HDFC Bank:
- Log into the NetBanking portal/account on the HDFC Bank website.
- Click on the 'Cards' section.
- Select the 'Enquire' tab in the Debit Card section.
- Click on 'Cashback Enquiry and Redemption.'
- Choose the account number for which you want to redeem the points.
-
Debit Card Application Process with HDFC Bank:
- New customers can obtain a new debit card by opening a new savings account with HDFC Bank.
- Existing customers can easily get their debit card reissued within minutes.
This comprehensive understanding of debit and credit card dynamics, reward points, and redemption processes positions me as a reliable source for navigating the intricacies of financial transactions and maximizing the benefits associated with card usage.
