Credit Cards: ICICI Bank is restructuring its credit card rewards program effective November 15, 2024, increasing spend thresholds for benefits like lounge access and capping reward points for specific categories. Changes aim to balance customer rewards with long-term profitability.
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Every bank needs to maintain a balance between the credit card rewards offered to customers and profitability. The balance ensures the rewards program can be provided to customers on a sustainable basis in the long term. Banks like HDFC Bank and Axis Bank have restructured the benefits on their credit cards in the recent past. Now, it is ICICI Bank’s turn to do the same.
The bank has announced some big changes to its credit card reward program. The changes will be effective from 15th November 2024. Let us discuss what these changes are and how they will affect you.
Changes to ICICI Bank credit card rewards program
Some of the changes ICICI Bank has introduced on its credit cards include the following.
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1. Increase in spend amount for lounge access
ICICI Bank credit cardholders will now need to spend Rs. 75,000 in the preceding quarter to avail of domestic airport lounge access in the subsequent quarter. For example, a cardholder will need to spend Rs. 75,000 in the October to December 2024 quarter to avail domestic airport lounge access in the January to March 2025 quarter.
Earlier, the spend amount for lounge access was Rs. 35,000 in a quarter. The spend amount was effective from April 2024. Before that, the spend amount for lounge access was Rs. 5,000. So, over a period of time, ICICI Bank has increased the spend amount for lounge access from Rs. 5,000 to Rs. 35,000 (April 2024) to the current Rs. 75,000 (November 2024).
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2. Spa benefit discontinued
Some ICICI credit cards offered Spa access at domestic airports on the basis of the DreamFolks card. The Spa access benefit will be discontinued from 15th November 2024.
3. Capping on earning reward points on insurance and utility spends
For some credit cards, the earning of reward points has been capped on utility spends of up to Rs. 40,000/month, while for some credit cards, it has been capped to spends of up to Rs. 80,000/month. The Merchant Category Codes (MCC) for utility spends are 4899, 4900, 4901, and 3887.
Similarly, for some credit cards, the earning of reward points has been capped on insurance premium payments of up to Rs. 40,000/month, while for some credit cards, it has been capped on insurance premium payments of up to Rs. 80,000/month. The Merchant Category Codes (MCC) for insurance are 5960, 6300, 6381, and 6399.
For the list of the specified credit cards, refer to the ICICI Bank website.
4. No reward points on government transactions
The ICICI Bank Emeralde Mastercard Metal Credit Card will no longer earn reward points on Government-related spends. The Merchant Category Codes (MCC) for Government transactions are 6760, 9222, 9211, 9399, 9402, and 9405.
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5. Capping on earning reward points on grocery spends
For some credit cards, the earning of reward points has been capped on grocery and departmental store spends of up to Rs. 20,000/month, while for some credit cards, it has been capped to spends of up to Rs. 40,000/month. The Merchant Category Codes (MCC) for grocery and departmental store spends are 3333, 5411, 5412, 5441, 9751, 5311, 5331, and 5499.
6. No fuel surcharge waiver beyond a specified amount
The fuel surcharge waiver will be applicable for fuel spends up to Rs. 50,000 per month. For spends beyond this limit, the fuel surcharge waiver will not be applicable. For the ICICI Bank Emeralde Mastercard Metal Credit Card, the fuel surcharge waiver will be applicable for fuel spends up to Rs. 100,000 per month.
The Merchant Category Codes (MCC) for fuel transactions are 1361, 3851, 5172, 5541, 5542, 5983, 9752, and 5555.
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7. Exclusion of specified category transactions for annual fee reversal and milestone benefits
The spends made on categories like rent, government transactions, and education will be excluded for the calculation of annual fee reversal and milestone benefits.
8. 1% fee on education payments via third parties
When you use your ICICI Bank credit card to make a payment directly to a school or a college, no fee will be charged. These transactions also include international education payments. However, when you use the credit card to make an education payment through a third-party website or app, a fee of 1% of the transaction amount will be charged.
9. 1% fee on utility transactions beyond a specified amount
For utility transactions exceeding Rs. 50,000/month, a fee of 1% of the transaction amount will be charged.
10. 1% fee on fuel transactions beyond a specified amount
For fuel transactions exceeding Rs. 10,000/month, a fee of 1% of the transaction amount will be charged.
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11. Fee for add-on cards
There will be a Rs. 199 fee for add-on or supplementary cards. The fee will be charged in the card anniversary month statement.
12. Reduction in the threshold for annual fee waiver
The spend threshold for annual fee waiver for the Emeralde credit cards has been reduced to Rs. 10 lakhs. Earlier the spend threshold was Rs. 15 lakhs. It is applicable for ICICI Bank Emeralde Visa Credit Card, ICICI Bank Emeralde Credit Card, and ICICI Bank Emeralde Private Credit Card.
13. Revision in late payment charges
ICICI Bank has revised the late payment charges for credit cards as follows.
| Outstanding amount | Late payment charge |
| Less than Rs. 100 | Nil |
| Rs. 101 to Rs. 500 | Rs. 100 |
| Rs. 501 to Rs. 1,000 | Rs. 500 |
| Rs. 1,001 to Rs. 5,000 | Rs. 600 |
| Rs. 5,001 to Rs. 10,000 | Rs. 750 |
| Rs. 10,001 to Rs. 25,000 | Rs. 900 |
| Rs. 25,001 to Rs. 50,000 | Rs. 1,100 |
| More than Rs. 50,000 | Rs. 1,300 |
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Restructuring of credit card rewards program is common
In the last few years, we have seen many banks revise the benefits on their credit cards multiple times. The bank may launch a credit card with lucrative benefits to get new users. Once the credit card gets a specified number of users and market share, the bank begins to right size the benefits to make the reward program sustainable in the long run.
ICICI Bank has also done the same thing. The revised benefits will kick in from 15th November 2024. Some changes for up to specified amounts are applicable on selected credit cards. To know the details of these particular credit cards, please refer to the ICICI Bank website.
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