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New Delhi: HDFC Bank has announced alterations to its credit card rewards program, set to take effect on 1st September 2024.
A cap will be introduced on reward points earned from utility transactions, with a maximum of 2,000 points per calendar month. These transactions will be identified using Merchant Category Code (MCC) 4900, starting from 1st September 2024.
Previously, HDFC Bank implemented a change in the utility transactions category. As of 1st August 2024, the bank began imposing a 1% fee on utility payments exceeding Rs. 50,000 per transaction for consumer credit cardholders.
The same 1% fee applies to business cards for amounts over Rs. 75,000 per transaction, with a maximum fee of Rs. 3,000. This is to deter the use of consumer credit cards for high-value commercial or business utility payments.
Individual customers typically won’t be affected by the 1% fee since their utility bills seldom surpass Rs. 50,000. The bank has clarified that insurance payments will not incur this fee as they are not classified as utility transactions.
Additionally, a 2,000-point monthly cap will be placed on rewards from telecom and cable services, tracked through MCCs 4812, 4814, and 4899, effective from 1st September 2024.
Reward points will not be awarded for education-related payments made via third-party apps such as CRED, Cheq, MobiKwik, etc. However, direct payments to educational institutions via their websites or POS machines will accrue points.
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