HDFC Moneyback Credit Card Devalued

By | July 22, 2016

HDFC Moneyback credit card is one of the most famous credit card ever launched for the beginners. This had the opportunity to earn 1.6% value back on all online spends as direct cash credit to your statement. It’s issued very easily to almost everyone who signs up for the HDFC credit card initially.

Moneyback Card – Story of Past:

It has become so popular with customers in recent times as cashback concept is very attractive and even i’ve redeemed the points for Rs.3,500 as direct cash credit on the statement in the past. That’s a great number just for holding such a beginner level card.

hdfc-moneyback-credit_card

HDFC Moneyback Credit Card

Well, banks are here to make money, so they made the redemption process so hectic that it takes atleast 10-15 days to get the cash credit and that too you have to fill the physical form and send to Chennai address. This gives resistance to people as not everyone wants to take prints, spend money to courier, etc.

Now as card holders are aware about the redemption possibilities, they have sent 1000’s of forms to chennai address which ofcourse is hard to manage and hence they decided to make the redemption process easy by few clicks in net-banking account.

Well, doing this bank will incur in huge loss as everyone can redeem points overnight and hence they decided to devalue the card. I noticed the net banking based redemption option as soon as they rolled out the De-valuation, makes some sense. Here are the changes,

HDFC Moneyback Credit Card Point Earn Rate Changes:

From June 1st 2016 onwards,

  • 1 Reward Point= Rs.0.30 (it was 0.40 earlier)
  • All online spends gives you only 2X reward points (it was 3X earlier)
  • Mastercard Lounge Access program revoked on Moneyback card (revoked on Allmiles MC too)

Overall value back on the card dropped from 1.6% to 0.8% which is a huge devaluation. Now the most popular product ofย  HDFC gets devalued on a huge scale and most of them don’t know about it. Hardly 5% of the card holders are aware of the changes.

Now, you can try to upgrade to a higher range card and make better use of your hard earned points. Doing so, bank will reduce certain % of points as you’re upgrading from a lower end card to a higher end card. Its a kind of trap.

This is how bank generally makes money in millions, clever strategy ๐Ÿ˜€

If you really have a lot of points, drop an email to HDFC and escalate to higher officials to get some meaningful solution.

What do you think about this devaluation? Share your comments below.

16 thoughts on “HDFC Moneyback Credit Card Devalued

  1. SriKrsna

    You are right. But I also see that Business Moneyback cards are not affected.

    Reply
  2. MANU KUMAR

    What’s next… I got the card in may 2016…

    Can I get a 2nd upgrade

    Reply
  3. Yuri

    Hi Siddharth, this is indeed a nice and comprehensive article. I have a HDFC Moneyback Credit Card issued to me a year ago as an upgrade from a Titanium Edge card I had earlier. The card has a limit of 3 lakh plus but am not happy with the features ever since the devaluation occurred. The next upgrade they have offered me is the Allmiles card which has the same devaluation. Is there a better card I can apply for from the HDFC stable? Do let me know your thoughts on the same. Thanks in advance:-).

    Reply
    1. Siddharth Post author

      Yuri,
      Ask for Regalia or Regalia First.
      Your Credit limit is good enough for bank to approve those cards.

      Reply
      1. Yuri

        Hey Siddharth, thanks for sharing this information bro:-). Guess I will have to contact their customer care for this request as the HDFC website is only offering me the Allmiles card as an upgrade if you can even call it that post all the devaluation. Will also wait for your review on Regalia First as well so that I can take an informed decision.

        Reply
        1. Siddharth Post author

          Sure. Just reviewed Regalia First. Have a look ๐Ÿ™‚

          Reply
  4. Ashok

    I too had just gotten the money back card and this has been quite a bummer and my limit is around a lakh.
    Which card would you recommend I upgrade to or change to. My priority is to get maximum savings rather then benefits for travel or for forex spend.

    Reply
    1. Siddharth Post author

      You can upgrade to allmiles or any diners cards. Your limit will also go up during upgrade, if you choose to.

      Reply
  5. Ashish Sanga

    Hi Siddharth

    I wanna apply for my first cc. Mostly for online use. Suggest me any HDFC Card.

    Reply
    1. Siddharth Post author

      Depends on Your eligibility. Get the premium ones if you’re eligible for.
      Below is the High to low end variants
      Diners Black > Regalia > All Miles > Moneyback

      Reply
      1. Ravi Sankar

        Hi Siddharth,

        Nice to see your posts on credit cards. I am having HDFC Superia credit card and going to expire in 4 months. I have nearly 10000 reward points in this card. As per my knowledge, i have to redeem the points only through gift vouchers and cannot redeem as cash with Superia card.
        As it is going to expire, Customer care person said i am eligible for Regalia card.
        Please suggest which card is better for upgradation. Is it better to take a money back card so that i can redeem my points into cash or take Regalia card. Also, please clarify whether all my reward points will be transferred to the new card.

        Reply
        1. Siddharth Post author

          Regalia is good, better than Moneyback in many ways. Go for it.

          Reply
  6. GIRISH

    Hi i am having hdfc bussines moneyback Card how much time to take limit increased in new card my bill payment is before due and usage 50% of limit

    Reply
  7. mv srinivas

    hii siddharth am using this card since 1 yr.i make a min bill of 15 to 20k per month.
    right now i had 97k credit limit.but since 3 months am trying to upgrade my card as this is devalued as u said .
    but they were not accepting my request to upgrade my credit card.actually i asked them for Regalia credit card upgrade.

    i use mainly for recharges online shopping movie ticks utility bills etc..so if i wanna upgrade which wil be good option for upgrade so that i can get good rewards etc.

    plsss reply.thank u

    Reply
    1. Siddharth Post author

      Its tough to get upgraded to premium card from a basic card with this limit.
      You can upgrade to Allmiles and then to Regalia after another 3-6 months.

      Reply

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