Paytm HDFC Bank Credit Card Review: A Comprehensive Breakdown

The Paytm HDFC Bank Credit Card is an attractive option for those who frequently use Paytm for transactions, offering a blend of cashback, reward points, and additional benefits. Let’s dive into the details and see if this card is the right fit for you.

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Fees and Charges

• Annual Membership Fee: Rs. 500 + GST

• First Year Fee Waiver: Spend Rs. 30,000 (Non-EMI) within the first 90 days to get a waiver.

• Renewal Fee Waiver: Spend Rs. 50,000 (Non-EMI) within a year for a renewal waiver.

Welcome Benefit

• Paytm First Membership: Available after a one-time transaction of Rs. 100.

• Note: This benefit is only available for customers onboarded before 10th September 2024.

Milestone Benefit

• Earn up to Rs. 1,200 cashback annually.

• 1% Cashback: On spending Rs. 10,000 per month (Non-EMI, Non-Wallet, Non-Rental), capped at Rs. 100/month.

Reward System & Cashpoints

• 3% Cashpoints on Paytm purchases (Recharge, Utility, Movies, Mini App) - Max Rs. 500/month.

• 2% Cashpoints on select Paytm spends - Max Rs. 500/month.

• 1% Cashpoints on all other retail spends - Max Rs. 1,000/month.

Cashpoint Redemption

• 1 Cashpoint = Re. 1 Cashback when redeemed against the statement.

• 1 Cashpoint = Re. 0.3 for SmartBuy (Flights/Hotels), Airmiles, and Product Catalogue.

• Minimum 500 Cashpoints required for redemption against the statement.

• Points expire after 2 years.

• 50% of flights/hotel bookings can be paid via reward points; the rest must be paid via the credit card limit.

• No handling charges for cashback redemption; however, Rs. 99 + taxes apply for catalog redemptions.

Cashback Accrual and Redemption Changes

• Grocery Spends: Capped at 1,000 Cashpoints per month.

• Travel Redemption: Capped at 50,000 points per month.

• Cashback Redemption: Capped at 3,000 per month.

• Redemption System: 70% Reward Points + 30% minimum pay for select categories.

Changes Effective 1st September 2024

• No Reward Points on Wallet loading, Easy EMI transactions, and education payments via third-party apps (CRED, Cheq, MobiKwik, etc.).

• Education payments made directly via school/college websites or POS machines will earn reward points.

Merchant Category Codes (MCC)

Important Charges

• Rental Payments: 1% fee on the second rental transaction within the same month.

• International DCC Transactions: 1% mark-up fee.

Additional Features

• Add-On Cards: Get up to 4 complimentary add-on cards.

• Utility Bill Payments: Register on SmartPay for automatic bill payments.

• Zero Cost Liability: Report lost/stolen cards to ensure zero liability on fraudulent transactions.

• Interest-Free Period: Up to 50 days of free credit.

Fuel Surcharge Waiver

• 1% waiver on fuel transactions (Min. Rs. 400, Max. Rs. 5,000, Waiver cap: Rs. 250 per cycle).

Contactless Payments

• Enabled for fast, secure transactions at retail outlets.

Dining Benefit

• Up to 20% discount at partner restaurants via Dineout when using this credit card.

Final Thoughts

The Paytm HDFC Bank Credit Card is an excellent option for frequent Paytm users who want to earn cashback and rewards. With a reasonable fee structure, useful milestone benefits, and multiple redemption options, it can be a valuable addition to your wallet if used strategically. However, users who rely heavily on wallet transactions or rent payments may find the reward limitations restrictive. Consider your spending habits before opting for this card to maximize benefits.