ICICI Bank Announces Revamped Credit Card Features: Changes In Lounge Access, Reward Points And More

ICICI Bank is set to implement significant changes to features and charges on 21 of its credit cards. This adjustment comes in the wake of similar modifications introduced by other major players in the banking sector, including HDFC Bank, IDFC First Bank, and SBI Card in 2023. The alterations primarily focus on reshaping airport lounge access, introducing dynamic currency conversion fees, and revising reward point policies.

Airport Lounge Access

Starting April 1, ICICI Bank credit cardholders will experience a transformation in the eligibility criteria for complimentary airport lounge access. To unlock this perk for a given calendar quarter, cardholders must now achieve a minimum spending threshold of Rs 35,000 in the preceding calendar quarter. For instance, to avail of complimentary lounge access in the April-June 2024 quarter, a minimum expenditure of Rs 35,000 in the January-March 2024 quarter is mandatory.

Previously, cardholders using the ICICI Bank Coral Credit Card or ICICI Bank Expressions Credit Card needed to spend a minimum of Rs 5,000 or above in a quarter to be eligible for complimentary lounge access. This change aims to streamline and standardize access requirements across the specified ICICI Bank credit cards.

Dynamic Currency Conversion (DCC) Fee Introduced

Effective from February 1, a new dynamic currency conversion (DCC) fee of 1% plus taxes will be applicable to all international transactions conducted in Indian currency at international locations or with merchants in India but registered in a foreign nation. This fee applies uniformly across all ICICI Bank credit cards.

DCC facilitates real-time currency conversion, enabling cardholders to make credit card payments in Indian currency during international transactions or with merchants registered overseas but operating in India. However, this convenience comes at a cost, as the 1% DCC mark-up fee, along with applicable taxes, will be added to the transaction amount. Notably, ICICI Bank had not previously imposed DCC mark-up fees on credit cards.

No Reward Points On Rent Payments And e-Wallet Loading

Effective February 1, ICICI Bank is discontinuing the issuance of reward points on credit card transactions related to rent payments and e-wallet loading. This change applies universally to all ICICI Bank credit cards, with the exception of Amazon Pay ICICI Bank credit cards.

While this adjustment may impact cardholders who frequently use credit cards for rent payments and e-wallet loading, the exclusion is not applicable to those utilizing Amazon Pay ICICI Bank credit cards. The move aligns with broader industry trends where certain transaction types may not qualify for reward points.

Utility Payment Transactions To Still Earn Rewards

Despite changes in other transaction categories, ICICI Bank reassures cardholders that reward points will continue to be earned on utility transactions. Starting February 1, government transactions such as income tax payments, stamp duty, document registration, property taxes, etc, will be categorized under utility payment transactions. This applies to all ICICI Bank credit cards, ensuring that users still benefit from rewards on essential transactions.

ICICI Bank's strategic adjustments aim to align credit card features and charges with evolving industry standards. Cardholders are encouraged to review the revised terms and conditions to understand the implications of their usage patterns.