Reward Points are the virtual points offered by banks on using the various banking services. Various banks have started this rewarding program to encourage the debit/credit card holders to increase the use of cards.
Just as a quiz master allocates points for every correct answer in quiz, similarly the banks allocates certain points on every transaction made by cards.
Reward points can be earned by using various banking services like internet banking, debit cards, credit cards, loans, etc. Reward points can be redeemed at certain stores and e-commerce platforms.
Note: Reward Points can be converted into cash only in case of select banks’ cards. The redemption facility is different for various programs and banks.
What can a consumer do with accumulated reward points?
A consumer can do a lot with the accumulated reward points. Every bank has separate programs.
- Use the reward points to purchase any product from the portal associated with it. Like SBI has the portal SBI Rewardz
- Convert the reward points to equivalent cash amount (Applicable only in case of select banks’ cards)
What is reward point redemption?
Redemption is the conversion process by which the reward points are converted to either cash (subject to bank or program) or used to buy some product or avail any service. The points accumulated in the card have to be redeemed within a particular time frame, else they are lapsed.
How is the bank benefited by giving reward points?
Bank is benefited in the following ways:
- Customer uses banking services more frequently to get more points. Thus, the bank is able to encourage customer to use banking services frequently.
- Bank gets transaction fees when the customer uses the services.
- Bank makes money by issuing cards and membership to various programs/services.
What are the various famous reward points program in India?
Few of the most famous reward points program in India are:
Payback
Payback is one of the biggest loyalty program in India. It has partnered with a lot of outlets and award points to members when they shop at those outlets using Payback. Know more about Payback at www.payback.in
SBI Rewardz
SBI Rewardz is an enterprise wide loyalty program of State bank of India (SBI). Any SBI customer is automatically enrolled as a SBI Rewardz member. The customer just need to go to rewardz.sbi or download the app & activate his account. Managed by Loylty Rewardz, SBI Rewardz is one of the best loyalty program in India.
HDFC Bank Regalia
Regalia is a loyalty program by HDFC Bank for its Regalia Credit Card holders. It offers a lot of benefits to the card holders and is one of the key loyalty program. You can know more about it by visiting hdfcbankregalia.myrewardz.com
TimesPoints
TimesPoints is a very unique reward program in which you get reward points for spending time on digital partner platforms like The Economic Times, The Times of India, Maharashtra Times, Navbharat Times, etc. Whenever you spend time on their website or app, you get points which can be used to get benefits like discounts, deals and gifts. Know more at www.timespoints.com