Big Rewards When You Link Credit Cards to Digital Wallets
Mobile payments and digital wallet payments have become the new norm with a host of companies like Paytm, Mobikwik, Freecharge, PayPal, Samsung Pay etc offering attractive rewards for using their wallets for online payment. Yes, these are convenient and safe for conducting online transactions. All you need to do is fill the digital wallet with sufficient money and use it to pay for stuff. Digital wallets are free to use and they typically come with a monthly/daily limit to abide by RBI regulations. But, for the average user, the limits are more than sufficient.
Payments using digital wallets are not only easy, they are rewarding as well. For starters, most companies offer attractive discounts and cashback offers on transactions. Depending on the wallet and their offers, you stand to win 50% – 100% as rewards. Apart from this, these wallets have online partners who give you additional rewards for using wallet payment at their stores. For instance, Snapdeal offers attractive cashback offers for payments made via Freecharge wallet. The same is true for Paytm as well.
Faster More Efficient Earning
Everyone is aware of rewards earned through digital wallets. But how many of us know that there is so much more to be earned by linking your credit card to these digital wallets? Last week I was browsing through the offer section of Bookmyshow.com and came across one that gave me an instant 50% off on movie tickets for just adding my VISA credit card to their wallet. Well, it sounded too good to be true and I simply had to try it. And guess what, it was true! That sent me on a linking spree and within a matter of hours unearthed every single offer out there that rewarded me for merely linking my credit card to their digital wallet. And to be honest, there are quite a lot of them out there!
So how does this work? Imagine you are paying for a movie ticket using Paytm. If your wallet doesn’t have sufficient cash in it, you need to add money from a debit or credit card. This is where by linking your credit card to the wallet; you stand to win cool discounts from them. Digital wallet companies use this as a promotional measure to encourage people to add money into their wallet so that the online payment process is completed faster and the user has a pleasant experience.
Details To Know
So is it always recommended to add money from your credit to the digital wallet for making online payments? Well, not necessarily. And this is where it gets a bit tricky. Most credit cards these days are category based and are aimed at targeting customers based on their spending preferences. Therefore, you have credit card aimed at frequent online shoppers, grocery shoppers, entertainment/movie buffs, and frequent travelers and so on. These cards mostly cater to any of the two categories that the customers specify. For instance, if your credit card offers you 5% cashback on swipes at supermarkets and movies in addition to reward points, it doesn’t make any sense making this transaction using a digital wallet. This is because the credit card companies rely on merchant category codes to determine whether the purchase qualifies for rewards or not. When payments are made via digital wallets, these merchant codes are replaced by their respective names and there is a good chance you may lose out on some cashback offers or additional reward points.
The Bottom Line
Therefore, it would be safe to say that you can use your digital wallets for categories other than what your credit card rewards you for. This way, you can ensure that you stand to win reward points or cashbacks for almost every spent made on your credit card. It is equally important to keep your eyes open for new offers that pop up every now and then. Smart use of digital wallets can help you accumulate reward points in a short period of time.
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