Credit Card Devaluation: If you chose a credit card because of its alluring perks and features, be aware that a number of institutions have chosen to devalue credit cards in recent months. When a credit card’s value and perks erode over time, this is known as credit card devaluation. It occurs when credit card companies alter the terms, rewards programme, or fees associated with the card, which ultimately leaves consumers with less value.
Credit Card Devaluation Trends
In an effort to encourage users to spend more money in order to receive rewards, Axis Bank and HDFC Bank have both depreciated certain features on their most popular cards. An eligibility criteria was established by HDFC Bank earlier this week in order to access the lounge advantages associated with its Regalia Cards. From December 1, 2023, onwards, cardholders can only receive these advantages if they spend a minimum of Rs 1 lakh in a calendar quarter, thus connecting lounge access to credit card spending. Only two free lounge admission tickets are given to users upon reaching the quarterly milestone. After that, access will be determined by the cardholders’ credit card spending.
Reorganized Procedure for Availing Lounge Advantages
In addition, the procedure for obtaining these advantages has been reorganised. Cardholders must visit the Regalia SmartBuy page and the lounge benefits page on the bank’s website to produce a lounge access ticket in order to receive their benefits after meeting the lender’s spending requirements.
Axis Bank’s Changes to the Magnus Credit Card
Axis Bank changed the conditions of its most popular Magnus Credit Card in September. Users no longer had access to the largest USP of the card, the 25,000 points monthly milestone incentive, and the annual fee went up from Rs 10,000 + GST to Rs 12,500 + GST. Prior to this, this card granted 25,000 EDGE reward points, or Rs 5,000, for every Rs 1 lakh spent each month. Additionally, as of September 1, Axis Magnus cardholders’ transfer ratio for converting reward points to hotel and airline loyalty programmes changed from 5:4 to 5:2. This means that for every 50,000 reward points, you can now receive 20,000 air miles instead of 40,000 miles.
Changes to Axis Bank-Flipkart Card Cashback
When using the Axis Bank-Flipkart card to pay for travel-related expenses on Flipkart, users can get 1.5 percent cashback. However, the bank no longer offers cashback on EMI transactions, purchases of petrol, and gift cards bought on Flipkart and Myntra. HDFC Bank made the decision to revamp its Diners Club Privilege offering in August.
Changes to Golf Game Benefits
The Bank eliminated the two golf games per quarter and stopped offering 2X Reward Points for weekend eating. Commencing on August 1, 2023, the Air Mile redemption was substituted by reward redemption against meal vouchers, both having the same value of 1 RP = Rs 0.5. While individuals seeking eating privileges may find this to be a good offer, frequent travellers may find the lack of airmile redemption to be a disadvantage. The five percent cash back on services such as jewellery, utilities, insurance, school and educational services, and other outlets was stopped by SBI Cards in May.