No more Reward Points for Wallet Loads on SBI Credit Cards from 1st July 2020

By | June 26, 2020
No rewards points for wallet loads on sbicards

Just like how every credit card issuer has one or more sad news during the Covid situation, SBICards is no different.

What’s the change?

Here comes a bad news for everyone who love using online wallets like Paytm, Mobikwik, etc as SBICard silently decided to revoke reward points accrual for e-wallet load transactions by adding a line in the Terms & conditions.

Here’s a quick look into the updated T&C (see under Shop-and-Smile rewards program):

sbicard terms and conditions for wallet loads

After HDFC Bank, SBICard is the second major credit card issuer to stop giving reward points on spends.

Why this Change?

This is usually done by banks because some users load the wallet through credit cards and then take it back to bank account.

This isn’t a healthy behaviour and so banks are trying to avoid it by revoking points on such spends. But the reason for current change is bit different.

SBICard CEO recently confirmed to ET Now in an interview that their transactions via e-wallets are on spike during the current Covid-19 situation.

sbicard CEO etnow interview
SBICARD CEO on ET Now interview

This is likely because many cardholders are doing big spends like paying utility & insurance bills via wallets among other small expenses.

That will be huge as you can imagine. We can assume that SBIcard must be seeing well more than ~30% (assuming, not real) transactions on wallets, if not more. FYI, Amex wallet spends increased from 2% to 10% during covid-19 (confirmed numbers), and hence the above assumption.

And so they must have decided to do this. Their balance sheet would now look good at the cost of our Reward Points.

What about other transactions?

There are two types of transactions when it comes to wallets.

  1. Wallet Loads
  2. Wallet as payment gateway

The second situation happens when you use wallet more like a payment gateway and transact directly with the merchant without loading.

But the problem is this is also treated as wallet load when it comes to HDFC bank and so likely to happen with SBICard too.

This is because either the MCC Code is not reported properly by the wallets or the bank wants to enjoy those transactions too by tagging them by “name” of the merchant, like Paytm Or maybe the problem is wallet services sometimes actually loads the amount and then debits the wallet instead of directly debiting them.

Either way, you have no control on it and so its safer to stay away from any wallet transactions, as much as possible.

Bottom line

Is this change fair to cardholders? No! 

I think they could handle it better in a different way. Something like “No Reward points beyond Rs.1 Lakh spend a year or so”. So that the genuine users are not affected by this.

But well, they’re into the “business” so they will see what makes them more profit than what users like. Yet, if they see a lot of customers complaining about it, it may change.

That all said, remember, this wont affect your milestone spends and you will continue to earn the spend linked benefits on most cards like Elite, Prime & SimplyClick.

What’s your take on this new change by SBICard? Feel free to share your thoughts in the comments below.

Author: Siddharth

I love credit cards, enjoy travelling for free using reward points & airmiles. Obsessed with business class cabins, airport lounges and luxury hotels.

46 thoughts on “No more Reward Points for Wallet Loads on SBI Credit Cards from 1st July 2020

    1. MrNightStar

      Based on Prevailing Sentiment, it would be AMEX.
      But sheerly on reward percent, Flipkart Axis gives 1.5%
      Amazon ICICI 1%
      Stan C Ultimate 3.3%
      HDFC Millenia 1%
      RBL Popcorn 1% if spend in a week is 2500
      (assured cashback of 25 and max potential of 250, more often than not it is 25 only)

      Reply
      1. Shashidhar

        Fliopkart Axis has stopped giving Cashback for Mobikwik or Paytm Laods.I have checked my statement and its “0” now.

        Reply
      1. SS

        Ola- Sbi still giving cashback in ola wallet load, but most of the time you can’t depende on ola money wallet.
        1. Very few option for water, electricity like utily bill payment in app.
        2. Most of the time d2h, prepaid and postpaid mobile payment dis not go through.

        SS

        Reply
  1. Mohammed Tabrez

    I will get reward points on my Regalia first card when I load money to Paytm wallet using netsafe virtual CC 😁🥳

    Reply
    1. Siddharth Post author

      Very interesting.

      Is Netsafe still working good these days? Its been almost a decade since I used them.

      Reply
      1. Mohammed Tabrez

        Yes it’s working perfectly fine!
        Since Paytm is charging 2 percent fee if we load more than 10k in Paytm wallet, netsafe generates unique credit card numbers and can be used in different paytm accounts for loading wallet!

        Reply
        1. Rohit

          are you getting reward points for generating netsafe card, how this works balance will be deduducted first then transaction occurs through that card

          Reply
  2. SS

    I add money to wallet then pay bills and small merchant There is multiple benefit.
    1. Wallet offer can be avail.
    2. convince, it’s easy pay bills via wallet, as all details already prefilled.
    3. Point can be earned in round figure and achive monthly milestone if there any.
    Earlier I used axis to wallet load, now using SBI…. Anyone have any idea who else still give point for wallet load?

    Reply
    1. Siddharth Post author

      Amex happily gives. Many use Paytm load for getting the monthly bonus on gold cards. Hope it lasts forever.

      Reply
  3. Pranab

    Hi Sid,
    I differ with your statement “treated as wallet load when it comes to HDFC bank”. Yes, it was for me with Regalia every time I used Paytm payment gateway and every month I had to chase CC. But since I’ve Infinia, not a single such transaction (more than 200) were marked as ‘Wallet load’.

    Reply
    1. Siddharth Post author

      That’s interesting to note. Thanks for sharing.

      But the problem is HDFC is highly unpredictable. They change rules every other day and its tough to keep an eye on all of them.

      Reply
      1. Tabrez

        At fuel stations, you can scan the UPI QR code issued by PhonePe and pay via Credit card and earn reward points because HDFC treats the transaction as PhonePe recharge. Plus you can save Surcharge too!

        Reply
        1. RH

          Very interesting. Without loading into the wallet? Can you please explain this further with an example? When i scan the QR code, which app allows to pay via credit card?

          Reply
          1. Mohammed Tabrez

            Only Phonepe issued QR code allows you to pay via credit card at fuel stations. Scan the QR code, you will get three payment options – UPI – Debit card – Credit card – Wallet Balance

    2. Maj Shetty

      I have infinia and even payment gateway of mobiqwik is marked as wallet load

      Reply
      1. SS

        All payment via mobiqwik is wallet load. Actually Mobiqwik add money to wallet then pay the Marchant during transaction. You can see your gateway payments via mobiqwik also traced under wallet transaction in Mobiqwik app.

        Reply
  4. Nithin

    Axis Bank also did the same. Got this message from them.
    Dear Customer, w.e.f 12th Apr’20 EDGE REWARD earn rules on wallet spends & reloads using your Axis Bank Credit card will be revised. T&C’s.

    Reply
  5. Shobhit Aggarwal

    This is a bad move, especially for users like simply who used to benefit from this. I don’t think that their cards holds much value now except the merchant offers.

    Reply
  6. AAJ

    Does IndusInd pioneer legacy provides points for wallet load?

    Reply
    1. MrNightStar

      Can anyone also report about IndusInd Iconia AMEX? 2% on weekends seems enticing.

      Reply
      1. Ramesh Kumar

        Now its reward point devalued as 75p from Re.1, so effectively Rs. 1.5% return on weekends.

        Reply
  7. Shreyansh Soni

    Unlike SBI, CITI bank seems to wanting to increase wallet loads as i recently got an offer to load 1500 in paytm and get 100 cashback directly in the card

    Reply
  8. ManzB

    Stanchart Ultimate gives points for wallet load.. return is good at 3.3% .. with no cap . But the redemption catalog is not good most of the time.

    Reply
  9. Saurabh Patel

    Used SBI SimplyClick for PayTM reloads. WIll now have to switch to AMEX.

    Reply
  10. Monkey Singh

    They are still charging the wallets a certain amount of money for each wallet load. Besides isn’t this helping them because the frequency of ATM refills and maintenance will reduce. People want to avoid gathering at ATMs where idiots accumulate like germs.

    Reply
    1. Gaurav Gupta

      Do NPS TIER 2 contribution on birthday.
      Do pay rent using no broker or redgirrafe on birthday.
      Bargain with your landlord for 1 month delay and 1 month advance and make 3 month payment in 1 go on birthday.
      Make ur insurance spends falling due in birthDay month and make payment on birthday.

      Reply
      1. Vish

        Good ideas!
        But unfortunately none of these work for me.. Thanks anyways!

        Reply
    2. The Conscience

      I think, wallet load on bday will still fetch 20rp . Fingers crossed. Otherwise I’ll switch to simply click. Peace of mind. I’m keeping this card just mainly coz of bday points.

      Reply
      1. Roy

        I don’t think so. 20 reward points will be applicable only for categories which fetch reward points. As they have excluded wallet transaction from reward point category, we won’t get any reward points on wallet load transactions even on birthday similar to fuel transactions where we won’t fetch any reward points even on birthday.

        Reply
  11. P K SRIVASTA

    Digital payment will be affected under these rules .

    Reply
  12. Random Churner

    Mate, what’s the minimum duration of tier 2 investment?
    is the following possible-
    contribute to nps tier 2 (gsec or corporate bond) on day 1 of card cycle
    withdraw on day 40-50
    some interest on nps

    at the same time do 40 day FD with real money, interest income will cover 1.1% card payment gateway charges.

    use high reward card like stanc ultimate or hdfc dcb or axis vistara for 3.3% free rewards at the same time crossing spending milestones.

    Reply
    1. Ashish Nikhare

      Whats the surety that 40 or 50 day returns will always be positive. If it goes negative, you have lost not only your processing charges but also the principal invested. Avoid NPS Tier 2 for 40 day returns. Once in a while, its OK-like Diwali spends or spend targets. But, even that is risky. Gsec / GILT / Corporate bonds are very dangerous. B’coz these are long term funds and have very high interest sensitivity. Suddenly you wake up in the morning & see your NPS Tier 2 holdings down by 0.5 to 1 %. Rather liquid funds or overnight funds are very safe. But, unfortunately not available with NPS Tier 2

      Reply
    2. Gaurav Gupta

      I meant for NPS contributions for those who anyway wants to contribute to NPS for tax saving.
      5% cashback on birthday with prime by paying 1.1% gateway charge is still profitable. Moreover at least 0.5% gets recovered on NPS contribution With 40-50 days With credit card.
      Same goes with rent payments by paying 1% and getting back 5% is again beneficial.

      Reply
      1. GTMAX

        @Gaurav Gupta

        NPS Tier 2 account contributions are not eligible for any tax savings. However, the same is a fantastic idea for people to achieve their spending based rewards

        Reply
  13. Abhi

    If anyone has the old ICICI Visa signature (Rubyx), now discontinued for new customers, it gives 1.6% on wallet loads. Reaching 3lac pa irrespective of category, gets you milestone benefit taking it to 2.4% . Its probably next best to Amex and SCU in that.

    Reply
  14. Ashish Gupta

    Hey,
    Is Icici Amazon pay card giving 1% on paytm wallet loads too ?
    Thanks.

    Reply
    1. shivam

      Yes, ICICI-Amazon co-branded credit card is giving 1% cashback (in form of usual amazon pay) while using it to load PAYTM wallet.

      Reply
  15. Yoda

    Guys any data points on bill payments like insurance on Amazon using Sbi simply click?

    Reply
  16. PANKAJ KUMAR GROVER

    if half payment done by amazon wallet and half payment done by using credit card of simply click then also no such reward point will be credit????
    Because no such reward is showing in app after adding money in amazon pay wallet??

    Reply
  17. Kunal

    there is this card called dhani pay super saver. which gives 5% cashback for all your spends. its a prepaid card so you got to load the money first in wallet and then swipe/spend.
    so I get 1% cashback while loading(amazon pay icici card) to dhani pay wallet and 5% while I spend.
    total 6% cashback accumulated.

    Reply

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