AU Bank has announced major updates to the reward program of its ixigo Credit Card, including the removal of reward points on several categories. Here’s what’s changing and how it impacts you.
No Reward Points on International Transactions
- Effective December 22, 2024, cardholders will no longer earn reward points on international spending.
- While the card still offers 0% forex markup, this is a significant blow for frequent international travelers who relied on rewards for foreign transactions.
No Reward Points on Key Categories
Starting December 22, 2024, the following categories will no longer earn reward points:
- Rent Payments (MCC 6513)
- Education & Government Services (MCC 8211, 8220, 8241, 8244, and more)
- BBPS Transactions
Earning Reward Points – What’s Still Eligible?
Cardholders can still earn reward points on:
- Utility & Telecom:
- MCC 4812, 4814, 4899, 4900
- 1 Reward Point/₹100 spent
- Insurance Payments:
- MCC 5960, 6300
- 1 Reward Point/₹100 spent (capped at 100 points per transaction)
Impact on Cardholders*
These changes significantly devalue the ixigo AU Credit Card, especially for those who used it for:
- International spending
- Education fees
- Rent payments
The reward structure is now limited to select utility and insurance categories, reducing its overall appeal.
What’s Still Good?
- The card retains its 0% forex markup, which is great for international transactions, even though they no longer earn points.
- Rewards for telecom, utility, and insurance payments remain, albeit with a more restricted structure.
Why This Devaluation?
AU Bank’s changes align with industry trends as banks seek to optimize costs and reduce misuse of credit card rewards programs. These updates follow similar devaluations across other credit cards.
While the ixigo AU Credit Card still has its perks, the removal of reward points on key categories makes it less appealing for many users. If you rely heavily on rewards for international spending or rent payments, it may be time to explore alternatives.