Unlock Credit Card Rewards: A Simple Hack to Maximize Points on Utility Bill Payments

Many credit card users are missing out on potential rewards when paying bills directly. However, a simple hack allows users to earn significantly more points by utilizing accelerated reward portals. Sumanta Mandal, a credit card enthusiast and founder of TechnoFino, explained this method to Mint. This technique can be a game-changer for individuals looking to optimize their credit card benefits.

How Accelerated Reward Portals Work

Many banks offer specialized reward portals that provide higher reward points on select transactions. Here’s how they function:

• Popular portals include HDFC Bank’s SmartBuy, Axis Bank’s Travel Edge and Gift Edge, and American Express’s Gyftr.
• They offer a variety of vouchers like Amazon Pay and fuel vouchers from BPCL or HP.
• According to Mandal, using Amazon Pay vouchers is particularly advantageous as it allows payments beyond shopping.

The Reward Maximization Hack

For example, if you need to pay an electricity bill of ₹10,000, doing so directly with most credit cards typically yields no rewards. Here’s how to earn substantial rewards instead:

1. Access the accelerated reward portal based on your credit card issuer.
2. Purchase an Amazon Pay voucher.
3. Add the voucher to your Amazon Pay balance.
4. Use your Amazon Pay balance to pay the bill.
5. Enjoy a 5X increase on your reward points!

Understanding Reward Points Breakdown

Generally, credit cards offer five reward points for every ₹150 spent, but this hack allows for 25 points per ₹150. Be aware of convenience fees that some portals may charge:

• HDFC SmartBuy has a 2% convenience fee + GST.
• Amex Gyftr has a lower fee of 0.75%.

Premium cards like HDFC Infinia can offer high rewards—up to 13% return after fees. “This method provides an excellent reward-to-cost ratio, especially for high-end cards,” Mandal shared.

Top Credit Cards for Higher Rewards

Several credit cards facilitate higher rewards through this method:

• HDFC Infinia
• HDFC Diners Club Black
• ICICI Emeralde Private Metal
• ICICI Times Black
• Axis Magnus and Burgundy Private
• Amex Gold and Platinum Travel and Charge

These cards often have stringent income requirements, but upgrades may be available based on your credit history and relationship with the bank.

Limitations to Consider

Despite its advantages, this method has limitations:

• Most portals cap Amazon Pay vouchers at ₹10,000 per card monthly.
• Vouchers cannot exceed ₹1 lakh for a single payment.

Planning ahead can be beneficial; for instance, if you need to pay ₹30,000, use different cards to buy multiple vouchers. If limited to one card, start purchasing vouchers months in advance to gather sufficient funds.

Why This Hack Might Not Be Worth It

While effective for premium cards, lower-reward cards may not yield substantial benefits. “For cards like HDFC Regalia, the effort may not be justified for an additional 2% return,” Mandal cautioned.

Important Considerations

Vouchers last one year; however, once in your Amazon Pay wallet, they do not expire. It’s essential to note that these funds can’t be transferred to a bank account. Moreover, ensure your vendors accept Amazon Pay for payments to gain those additional rewards.

“Harnessing the power of your credit card issuer’s portal is crucial for unlocking higher rewards,” Mandal emphasized. Be mindful of convenience fees and specific reward structures to maximize your returns.

In conclusion, using accelerated reward portals can transform how you earn rewards on utility bill payments. By employing this strategic hack, credit card users can significantly increase their reward points and enjoy greater financial benefits.

Keywords: Credit Card Rewards, Utility Bill Payments, Accelerated Reward Portals, Maximize Points, Amazon Pay, Credit Card Strategy
Hashtags: #CreditCardRewards #PersonalFinance #UtilityBillHack #AmazonPay #FinancialTips



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