HDFC Bank officially launched a range of business credit cards this week named BizFirst, BizGrow, BizPower, and BizBlack for small & medium business owners. Among them, Biz Power is the premium variant & BizBlack is the super premium variant that offers lucrative rewards on business spends.
Note that these are “business” cards and not “corporate” cards and hence they are issued on personal liability and not corporate liability. So technically they’re not so different from personal cards as the spends on the card are reported to personal PAN and not to company’s PAN.
That said, here’s a quick look at the newly launched HDFC Bank business credit cards with a focus on BizPower and BizBlack variants.
- Joining Fee: 10,000 INR+GST, renewal fee waived on 7.5L spend
- Club Marriott membership and Taj stay voucher worth Rs.5000 on a spend of Rs. 1.5 Lac within 90 days.
- Reward rate: 3.3% on regular spends
- Accelerated rewards: 16.5% with 5X rewards on tax, GST, bill payments on PayZapp and more.
- 5X T&C: Max. Cap of 7.5K bonus points a month; min. spend requirement: 50,000 INR (anywhere)
- Flight voucher or Taj stay voucher worth Rs.5,000 on every Rs.5 Lac spend. Get vouchers worth upto Rs.20,000 on spend of Rs.20 Lac in a calendar year.
- Interest Free Credit period of 55 days instead of usual 50 days.
- Unlimited Lounge Access for primary & Add-on, Golf benefits & more
BizBlack mimics the personal Diners Black Credit Card with additional features and benefits that are truly beneficial for businesses.
That said, note that there is no other “business” credit card in India that gets anywhere close to the immensely rewarding BizBlack Credit Card. But part of the problem is that BizBlack is only issued on DinersClub platform and hence comes with acceptance issues.
- Joining Fee: 2,500 INR+GST, renewal fee waive on 4L spend
- Welcome Benefit: Amazon Prime (Annual membership) & Biz Prime (6 months membership)
- Reward rate: 1.3% on regular spends
- Accelerated rewards: 6.5% with 5X rewards on tax, GST, bill payments on PayZapp and more.
- 5X T&C: Max. 5K Bonus points a month; min. spend requirement: 25,000 INR (anywhere)
- Quarterly Milestone: 2500 INR gift voucher on 2.5L Spend
- Credit period of 55 days instead of usual 50 days.
- Lounge access: 2/Qtr domestic (+2/Qtr based on spends), 6 International
BizPower likely replaces the existing Regalia Business Credit Card with upgraded features and benefits of getting better rewards on select business spends.
Why Business Cards?
There are two major advantages of using business credit cards over the regular personal credit cards and here are they:
- High Value Spends: As you might know, HDFC Bank or most banks for that matter sends a notice when high value business spends are done on your personal credit cards. This is less likely to happen on Business Credit Cards as they’re meant for business spends.
- Tax Payments are rewarding: Getting a reward rate of ~16% on TAX/GST is unheard of in this lifetime and HDFC Bank is the first bank ever to offer such a crazy benefit. While this may not last long, I guess the capping in place should sustain it for an year or so.
HDFC Bank’s new range of business Credit Cards are heavily loaded with features and benefits that are truly useful for small and medium businesses.
My first ever Credit Card with HDFC Bank was the Business Platinum Credit Card (now discontinued) that used to offer 1% cashback on spends back in time. So in comparison, HDFC Bank has evolved slow and steady all these years to launch probably the best ever Business Credit Card in the world with the BizBlack variant among others.
Expect the newly launched cards to go in circulation within a week or two. A detailed coverage of each to be shared shortly.
I hope we get more such rewarding business credit cards in India so that I’ll have more options to answer hundreds of business owners every year asking “Hey Sid, suggest me a good business credit card to spend >5L a month”.