Why Axis Bank Has Suspended Redemption Of Reward Points For Some Customers – News18

If you use an Axis Bank credit card, chances are you may have received a notification from the bank on July 21, putting a hold on the redemption of reward points. The feature, which used to be a big attraction for users, has been suspended for some of them. According to a report by Moneycontrol, the email said that some non-personal use of the credit card had been observed, with the names of some merchants.

All other uses, including business and commercial, are prohibited under the Axis Bank Card Member Agreement. According to the mail, the bank has found that users are using the card for unauthorised expenses to earn reward points.

According to Tejas Ghongadi, co-founder of The Points Code, it is against the terms and conditions to use personal credit for company expenses. Users who have used a specific payment gateway appear to be the target audience for Axis Bank’s email.

Ankur Mittal, co-founder and chief technology officer of Card Insider, a platform that monitors credit-card business, praised Axis Bank’s decision to restrict some users’ ability to redeem reward points for non-personal purchases as a commendable move towards maintaining the viability of its rewards programme.

Credit card tracking experts claim that Axis Bank maintains a careful eye out for questionable spending patterns. It delivered notices of suspected commercial use to high-net-worth individuals (HNIs) who were cardholders of cards like Axis Reserve and Magnus in March 2023.

According to Sumanta Mandal, the founder of TechnoFino, a portal that monitors the Indian credit card sector, the bank has a history of cancelling cashback cards like the Axis Ace and Flipkart Axis Bank credit card if it is discovered that they are being used for business purposes.

Customer accepts the conditions set out by the issuer when applying for a credit card. The issuer has the right to cancel the card if these are broken. It is recommended to read and understand well the terms and conditions of your credit card to prevent making this error.