Word that even when Moneyback+ and Millennia are promoted as rewards and cashback bank cards respectively, the rewarding mechanism for each these playing cards is similar as each supply rewards and cashback through CashPoints.
What’s the distinction between Rewards and Cashback?
Word that there’s a most restrict to incomes rewards and cashback. The utmost threshold could fluctuate from card to card.
Generally, rewards and cashback operate in another way, but, as talked about above, these playing cards supply comparable advantages round CashPoints. The distinction nonetheless lies within the redemption worth of those CashPoints. In case of Moneyback+, 1 Cashpoint = Rs. 0.25 whereas, for Millennia 1 Cashpoint= Rs. 0.30. The redemption course of for each these playing cards is illustrated beneath:
Illustration 1: Let’s suppose you spend Rs. 300 on Amazon through Moneyback+ Credit score Card and are eligible for 10X rewards per Rs. 150 spent (at 2 rewards per Rs. 150) amounting to twenty reward factors per Rs. 150 spent. Thereby on a purchase order of Rs. 300, you’re going to get 40 CashPoints. You may redeem this for 1 CashPoint= Rs. 0.25. Thereby, 40 CashPoints quantity to advantages round Rs.10 on spending Rs. 300.
Illustration 2:Lets’ suppose you spend Rs. 300 on Amazon through HDFC Financial institution Millenia Credit score Card and earn a cashback of 5%, which quantities to Rs. 15. Word that with the Millennia card, cashback is obtainable within the type of CashPoints, thereby you’re going to get 15 CashPoints. In terms of redeeming the CashPoints you may redeem the identical at 1 cashpoint= 0.30, apart from paying the assertion steadiness the place in 1 money level= Rs. 1. Thus 15 CashPoints supply advantages round Rs. 4.5 on spending Rs. 300.
Subsequently, as per the above illustration, MoneyBack+ Credit score Card gives higher redemption worth compared to HDFC Millennia Card, even when the redemption charge is low at Rs. 0.25 per Cashpoint compared to Millennia at Rs. 0.30 per CashPoint.
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Prompt Learn: The best way to Redeem HDFC Credit score Card Reward Factors?