- 24 July 2023
Axis Bank Revokes the Redemption of Reward Points for Selected Customers
Credit card firms and banks are known to shun customers who acquire reward points more quickly through questionable means, such as using personal cards for business transactions.
Axis Bank identified concerning patterns in credit card usage among certain customers and is tightening ropes on them. Let’s look at what went down:
Certain cardholders made unauthorized purchases in violation of the Axis Bank Card Member Agreement.
Several Axis Bank credit card users received an email on July 21 informing them of a freeze on the redemption of their reward points, triggering an uproar among its credit card users.
Customers’ quick desire to accumulate excessive reward points in a short period of time has fueled such misuse of credit cards.
Ankur Mittal, co-founder and chief technology officer of Card Insider, a platform that tracks credit-card business, praised Axis Bank’s decision to block access to redeem reward points for some users engaged in non-personal spending as an excellent move toward preserving the sustainability of its rewards program.
Proactive Action Against Improper Credit Card Usage
Axis Bank‘s decision to suspend reward point redemption for a subset of customers is intended to preserve the loyalty program’s viability.
Axis Bank identified substantial data that depicted credit card usage for business expenses, which was in breach of the credit card usage terms and conditions.
Reward points will continue to accrue for users who follow the guidelines as is and minimize credit card usage solely for their own personal needs.
Mittal pointed out, “By preventing the misuse of personal cards for business expenses, the bank ensures that genuine customers continue to receive rewards.”
Axis Bank Meticulously Tracks Suspicious Transactions
In the past, credit cards such as the Axis Ace Flipkart Axis Bank Credit Card have been canceled when discovered to be used for business purposes.
According to credit card specialists, Axis Bank closely monitors dubious credit card transactions.
Axis Bank has previously requested verification of personal use for transactions conducted during specific time periods.
In the absence of such substantiation, cards were blocked.
The proactive approach of the bank seeks to ensure that reward benefits are properly distributed to compliant customers and to prevent credit card abuse for business expenditures.
Have You Received An Email From Axis Bank Regarding Reward Redemption Suspension?
If you receive such an email from your bank or credit card company, you must attempt to produce invoices for the products and services you purchased with your card.
Typically, the bank will transmit a URL that enables users to submit invoices online. Proofs must be submitted within thirty days of receiving the mail. You can also contact your bank via telephone banking.
Keep personal and professional matters separate.
Experts advise against combining personal and business expenses on a single credit card. The benefits and rewards associated with personal credit cards are optimized based on individual usage.
According to Adhil Shetty, CEO of BankBazaar.com, the majority of issuers have distinct business credit cards that are optimized for businesses and offer superior rewards and benefits for business users.
The appropriate usage of a business credit card contributes to the business’s credibility and offers the opportunity to earn more benefits and reward points.
It is clearly mentioned in terms and conditions published by many banks, the differences between personal and business use of a personal credit card.
Others do not mention it, but excessive use for commercial purposes may raise a red flag.
