One-minute guide to understanding reward points

0-15 seconds

Who am I?

I am that promise of a freebie that slips in every time you shop using a credit card. I usually get accumulated in the form of points having monetary value. How much I am worth would depend on my value per rupee spent. So, if the card vendor values me at Re1 every Rs100 spent, you’ll have to spend Rs1 lakh to buy a product worth Rs1,000.

15-30 seconds

What can I do?

You can trade me for a camera, music system or any other product listed on the catalogue issued by the card vendor. Remember, as in any game, there are rules here: you need a minimum number of points before you can begin redeeming. Some vendors allow you to trade me for a gift voucher in a specific mall or shop. But check my validity across cities, date of expiry and other issues that you may find in the fine print.

30-45 seconds

How do you use me?

To use me, you will have to fill a redemption coupon available on the card vendor’s website. You can either call the helpline and place an order or can do it yourself online.

45-60 seconds

When does it really work?

When you make large transactions on your card, you can get to shop for free several times in a year.