Several Axis Bank credit cardholders received an email from the bank on 21st July, informing them that the redemption of their reward points has been suspended. This decision has garnered attention from customers who considered the rewards program a significant attraction. The bank clarified that the credit card can only be used for personal expenses as per the Exi Bank Card Member Agreement, and non-personal usage has been observed, including business and commercial transactions. This violation, aimed at earning undue reward points, prompted the bank to take action.
Axis Bank Suspends Reward Points Redemption: Email to Credit Cardholders
Tejas Ghongadi, co-founder of The Points Code, emphasized that using personal credit cards for business expenses contradicts the terms and conditions. Axis Bank appears to have sent the email to users who used specific payment gateways associated with business payments.
Ankur Mittal, co-founder, and chief technology officer of Card Insider, supports Axis Bank’s decision to suspend reward points redemption for certain users, seeing it as a step toward ensuring the program’s sustainability. He believes the bank aims to direct rewards to genuine users while limiting business expenses on personal credit cards.
Clarification on Credit Card Usage: Only for Personal Expenses
Axis Bank is vigilant about monitoring suspicious credit card transactions. In the past, it has taken action against high net worth individuals suspected of commercial card use. TechnoFino founder Sumant Mandal highlighted instances where Axis Bank canceled credit cards, such as the Axis Ace Flipkart Axis Bank Credit Card, for unauthorized business usage.
Earlier this year, Axis Bank sent similar emails to customers, requesting proof that transactions in December 2022 and January were for personal use. Failure to provide evidence would lead to card blocking. Additionally, in June 2023, some customers were notified of card blocks and suspension of reward redemptions for a limited period.
