Cards and other digital modes of payments made our life easy. One can carry a huge amount of money without carrying actual cash. Moreover, Banks give reward points to their credit card and debit card customers to encourage the customer to use their cards more and more.
When we open our account with a bank we generally see all the benefits offered by the bank. But with due course of time, we usually forget about our reward points. If collected over a substantial amount of time, these rewards can be redeemed for really good deals. Today, in this article we will tell you about these reward points and how to redeem these points.
Also read: How To Apply For Cash Cards And Gift Cards
What is Reward Point?
Customers get reward points on every purchase with a Debit or credit card. For example, you have shopped for 1000 rupees at a shopping mall with your card, that bank gives you several reward points, for example, 4 points on every 100 rupees purchase at that shopping place. So, if we go by the Maths, in this purchase you earned 40 reward points on the credit card. You can redeem the accumulated reward points based on card purchases for six months, a year or whatever the validity provided by your bank.
How to redeem reward points?
Each bank offers different facilities to redeem the card reward points. Once you have accumulated card reward points, you can redeem the same as per the procedure provided by the bank.For this, you have to visit the official website of your bank. However, there are certain broad categories in which you can redeem these points.
- Most of the banks provide a list of gifts to their customers in lieu of credit card reward points. You can choose a gift from this. This can include a range of items like crockery, food items, gift vouchers and clothes etc.
- Many banks offer Vouchers for redeeming reward points. These vouchers can be used in any store or online shopping. Vouchers can start from Rs 100 to a few thousand rupees.
- Many banks give Cash to customers on redeeming card reward points in the form of cashback cards. This cash gets added to your account balance.
- Many banks offer travel Coupons in association with travel companies. This is a better facility for the customers travelling by air. These travel vouchers can be redeemed against flight or bus tickets or hotel bookings.
- Several banks also allow their customers to donate instead of redeeming the reward points. If you want to donate to any non-governmental organization (NGO), educational institution or charitable organization, then you can donate to that organization by redeeming credit card reward points.
- Many banks now offer cashback facilities to customers on scheduled purchases instead of reward points on credit cards. In this, you do not get reward points on shopping, instead, you get cashback.
- Some banks also provide other options to their customers in the program of redeeming credit card reward points. These include fuel, special service, entertainment-related features, training, classes etc.
- Sometimes banks tie-up with any grocery store, then you can redeem the credit card’s reward points and shop from that store against card points.