Credit Card Rewards on Rent Payments: Restrictions and Capping

Credit Card Rewards on Rent Payments

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Rent payment has been one of the easiest ways to achieve milestones and fee waiver spends on credit cards. Not only that, when we pay rent by credit card we get extra cashback/rewards/vouchers with many offers. No wonder, everyone has started paying their rent by credit card. Unfortunately, many have also been misusing this feature. The result – banks have started capping and reducing rewards on rent payments. Being a ‘genuine’ rent payer myself, I have started keeping track of these changes. In this post, I would be updating the rewards offered by various credit cards and their variants as and when I come to know of them. If you find something missing or incorrect, do comment on the same.

IndusInd Bank Credit Card Rewards on Rent Payments

IndusInd Bank was one of the first to cap rewards on rent payments.

LTF IndusInd Bank Credit Cards
InterMiles Co-branded credit cards1 InterMiles / Rs 100
All other credit cards0.7 RP / Rs 100

Axis Bank Credit Card Rewards on Rent Payments

For now, Axis Bank has removed rewards for rent payment transactions only on its entry-level cash back credit cards.

Flipkart Axis Bank and Ace Credit CardNIL (Zero)
MY Zone, Neo, IOCL, Aura, Advantage, Privilege, Select, Magnus, Signature, and Atlas Credit cardRegular Rewards for up to Rs 50000 rent payment transaction
Reserve and Burgundy Credit CardRegular Rewards for up to Rs 1 Lakh rent payment transaction

RBL Bank Credit Card Rewards on Rent Payments

RBL Bank has not capped rewards for rent payments so far but has introduced some rules on it. The rules make sense and there is nothing to worry about for genuine rent payers.

  • Maximum 1 transaction/month
  • Minimum Value of Rs 5000
  • Maximum Value: 50% of the credit limit

IDFC First Bank Credit Card Rewards on Rent Payments

LTF IDFC First Bank Credit Cards

IDFC First Bank has reduced rewards on rent payment transactions to 3X.

All IDFC First Bank Credit Cards3X Rewards ~ 0.75%

HDFC Bank Credit Card Rewards on Rent Payments

Enable Disable International Transactions on HDFC Bank Credit Card

HDFC Bank has introduced a capping of reward points that can be earned on rental transactions. This will be effective 23-Jul-2022.

Infinia and DCB2000 RP/month
Regalia and Diners Club Privilege1000 RP/month
Millennia and Moneyback+500 Cash Points

My Thoughts

While it is disappointing to see caps on rent payment rewards, I can understand why banks are doing this. In the long run, genuine rent payers and rent payment services will be the ones who will lose. I wish banks would have tied up with select services like RedGirraffe. Verification and biller id functionalities can reduce misuse to a large extent. But for now, expect banks to slowly stop allowing rent payments just like Amex does.

If you are paying rent by credit card, there are still a few options like HDFC Bank and Citibank to get rewards. Do check out the latest payment offers to get extra rewards/cashback.

AU Bank Xcite Ace Axis Bank Neo Credit Card LTF
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3 thoughts on “Credit Card Rewards on Rent Payments: Restrictions and Capping”

  1. Any idea if there is any change in SBI CC rewards points policy for rent payments? I use Simplyclick card for rent payments.

  2. Thanks for the post.
    Wasn’t aware about the new cap proposed by HDFC.
    Banks are making it increasingly tough to get reward points.

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