Axis Bank has announced changes to the rewards structure on their popular Axis Bank Vistara Credit Cards. These changes, which go into effect on January 3rd, 2024, relate to earnings on government services and utility transactions.
What have changed?
The key changes are:
- Government services transactions will no longer earn Club Vistara points or count towards milestone benefits
- Utility transactions will also not earn Club Vistara points or milestone benefits.
The bank has provided a detailed list of merchant codes that fall under these two categories:
Government Services
| Merchant Code | Category |
|---|---|
| 9222 | Fines |
| 9311 | Tax Payment |
| 9399 | Other Gov’t Services |
| 9402 | Postage Stamps |
Utilities
| Merchant Code | Category |
|---|---|
| 4814 | Telecom/Phone Services |
| 4816 | Computer Network Services |
| 4899 | Cable/Pay TV or Radio Services |
| 4900 | Electric, Gas, Water, Telephone or Sanitation Utilities |
Why Make These Changes?
Axis Bank likely made these changes to reduce opportunities for manufactured spending. Customers could previously make large transactions in these categories to quickly earn rewards and achieve spending milestones.
By excluding government and utility transactions, Axis Bank aims to encourage “real” purchases that drive additional business. This shifts the focus towards daily spending for dining, travel, online shopping, etc.
What is the impact on you?
Many cardholders utilized government services and utilities to maximize rewards earnings. This route is now closed off.
However, all other purchase categories remain eligible to earn Club Vistara points and contribute to milestone benefits. So there are still ample opportunities to earn rewards.
Examples include:
- Dining out
- Online shopping
- Travel and entertainment
- Insurance payments
- Education fees
Any customer transactions outside government services and utilities will continue to earn rewards as before.
is there Alternatives for Government Spends?
One popular alternative credit card for government spends is the Amazon Pay ICICI Bank Credit Card. This card offers:
- 2% reward points on government services, utilities, insurance, EMI transactions
- 3% rewards on most other transactions
The Amazon Pay ICICI Card therefore retains government services and utilities as eligible categories. Customers who previously used Axis Bank cards for these transactions may want to consider switching.
Key Takeaways
- Axis Bank Vistara Credit Card changes take effect January 3, 2024
- Government services and utilities will no longer earn Club Vistara points or count towards milestones
- Most everyday purchase categories remain eligible for earnings
- Amazon Pay ICICI Card is an alternative option for government spends
