Why Axis Bank Has Stopped Allowing Some Customers To Redeem Reward Points
If you have an Axis Bank credit card, it’s possible that you got a notice from the company on July 21 prohibiting the use of reward points for cash. Some users no longer have access to the function, which was formerly a major draw. The email, which included several merchant names, allegedly said that some non-personal usage of the credit card had been seen.
According to the Axis Bank Card Member Agreement, any further uses, including commercial and business ones, are not permitted. The bank has reportedly discovered that customers are using the card for unauthorized purchases in order to accrue reward points, according to the mail.
It is against the terms and conditions to utilize personal credit for business costs, according to Tejas Ghongadi, co-founder of The Points Code. The recipients of Axis Bank’s email seem to be users who have utilized a certain payment channel.
Ankur Mittal, co-founder and chief technology officer of Card Insider, a platform that tracks the use of credit cards, praised Axis Bank’s decision to limit some users’ ability to use reward points for non-personal purchases as a commendable step towards maintaining the viability of its rewards program.
According to specialists in credit card surveillance, Axis Bank keeps a close look out for suspicious spending habits. In March 2023, it sent alerts of alleged commercial usage to high-net-worth individuals (HNIs) who had cards like the Axis Reserve and Magnus.
The bank has a history of canceling reward cards like the Axis Ace and Flipkart Axis Bank credit card if it is discovered that they are being used for commercial reasons, according to Sumanta Mandal, the creator of TechnoFino, a platform that analyzes the Indian credit card industry.
When a customer applies for a credit card, they agree to the terms that the issuer has laid out. If these are breached, the issuer has the power to cancel the card. To avoid making this mistake, it is advised that you carefully study and comprehend the terms and conditions of your credit card.
