IDFC First Bank Reduces Credit Card Rewards, Tightens Lounge Access from May 1st

IDFC First Bank has announced significant changes to its credit card offerings, which will come into effect on May 1, 2024. These modifications will impact reward points, airport lounge access, and fees for utility and rent payments. Let's take a closer look at what's changing:

Online Spending Rewards

a. The reward points awarded for online spending up to ₹20,000 will drop from 6X to 3X.

b. The 10X reward points for spending over ₹20,000 per month will remain the same.

Changes to Other Reward Categories

IDFC First Bank will now award 3X points for transactions related to education, wallet reloads, and government payments.

Related: Can Students Get Credit Cards?

Surcharge for High Utility Bill Payments

a. A 1% surcharge + GST will be applicable to total credit card payments for utility bills exceeding ₹20,000 in a single statement cycle.

b. However, this surcharge will not apply to the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card.

Stricter Airport Lounge Access Criteria

a. Free domestic lounge access available to IDFC First Select Credit Card holders will be reduced from 4 to 2 visits per quarter.

b. First Wealth Credit Card holders will also get two complimentary lounge visits per quarter instead of the earlier four visits (both domestic and international).

Increased Charges for Rental Transactions

IDFC First Bank is raising the charges for rental payments to a flat fee of ₹249 per transaction or 1% + 18% GST, whichever is higher.

Industry-Wide Trend of Credit Card Devaluation

IDFC First Bank's decision to modify its credit card offerings follows in the footsteps of Axis Bank, ICICI Bank, and Yes Bank, indicating an industry-wide trend of reduced credit card benefits.

Why Do Credit Card Rewards Change?

Various factors can influence the decision to modify credit card reward programs. These may include the bank's strategic goals, the sustainability of reward programs, market competitiveness, and economic conditions.

Stay Informed About Credit Card Changes

Credit card benefits are subject to change throughout their lifecycle. To make informed decisions about your credit card usage, stay updated on revisions to rewards programs, fees, and eligibility criteria.

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