Paytm Citi CardPaytm recently launched Paytm First Card. The company says this is India’s first credit card with unlimited 1% cashback on all transactions with no restrictions on earning categories. The card is issued by Citi. Being launched by digital payments pioneer, there is understandably a lot of interest in this unique offering where unlimited 1% cash back, without restrictions, is auto-credited to card every month. Let us find out more about the card and what it offers you.

Brass Tacks

The Paytm First Card is accepted in India and internationally. It is contactless-enabled, which means consumers can purchase products or services by using RFID technology or near-field communication (NFC). You can simply tap-and-pay at merchant terminals for purchases up to Rs. 2,000* in India without entering the PIN. For payments above Rs. 2,000* or on terminals without, use your card by dipping or swiping with pin and/or signature.

The credit card offers full waiver of the annual fee of Rs 500 on spends exceeding Rs 50,000 per year.

There are exclusive offers on dining, shopping, travel, amongst others on the globally acclaimed Citi Privileges platform.

To make the deal sweeter, the Paytm First Card customers will also get free Paytm First membership with benefits worth over Rs 15,000 across different categories ( Paytm First membership for 1 year). They will be able to conveniently track their transactions in Paytm First Card passbook on Paytm app along with details of various benefits offered on the card.

There has been a lot of thought that has been put into action in Paytm First Card. It is designed to bring more flexibility to customers in their digital payment options and help spur large-ticket cashless payments.

In the inaugural period, Paytm First Card is being offered only to select customers. Soon, the company says, the card will be opened for all customers and they will be able to apply for it through their Paytm app.

Cash back funda

There is 1% cash back on all transactions. Cashback will be adjusted in your monthly statement.

As a customer, you will earn 1% unlimited cashback on all card spends, which will be automatically credited after the monthly bill generation. This cashback will be credited within 2 working days of bill generation.

Citibank benefits

From Citibank, you can get a slew of benefits.

Firstly, you can get up to 15% discount at partner restaurants when you use Paytm First Card.

Two, get 2 movie tickets at the price of 1 ticket. Enjoy this movie booking offer every Friday, on Paytm movies.

Three, get access to exclusive lifestyle services with many brands like Reliance digital, Zomato, Big Basket and many more.

Where to use the card

The Paytm First card can be used in both online and offline transactions. The card is shipped to you in an activated state. You can use it for online purchases right away, says Paytm.

Once you generate a PIN, you can use your card to make payments at any merchant establishment that accepts VISA cards. You can also use the Paytm First card to add money your Paytm wallet.

Card fees and charges

Annual fee – An annual fee of Rs 500 is charged at the end of the membership year. This fee is waived off on spends of Rs 50,000 or more on your card in a membership year.

Cash advance fees – This 2.5% on the billed amount withdrawn, subject to a minimum of Rs 500.

Late payment charges – NIL for statement balance up to Rs 1000

The late payment charge is Rs 450 for statement balance above Rs 1000 and up to Rs 5000. The charge goes up to Rs 700 for statement balance above Rs 5,000 and up to Rs 10,000. The charge is Rs 950 for statement balance above Rs 10000.

Over credit limit charge – This 2.5% of the amount (excluding fees, charges and taxes) over the credit limit, subject to a minimum of Rs 500.

Fuel transaction charge – This 1% of the transaction amount, subject to a minimum of Rs 10. There is waiver at Indian Oil Corporation outlets for transactions on Citi EDCs (electronic data capture terminals).

Railway ticket booking surcharge – This is 1.8% of the transaction value.

Statement Request (beyond 3 months), reissue of lost, stolen or damaged card and outstation cheque charge (based on the value of the cheque) is in Rs 50 to Rs 150 range.

Foreign currency transactions – For international transactions in US Dollars, 3.5% mark-up on the INR equivalent of the US Dollars, at the conversion rates published by the card networks. For international transactions effected in currencies other than the US Dollar, the transaction would first be converted into US Dollars, at the conversion rates published by the card networks. On the US Dollars amount, 3.5% mark-up would be levied on the INR equivalent of the US Dollars, at the conversion rates published by the card networks. Foreign currency transactions will be billed in Indian Rupees, using exchange rates published by Card networks, as of the date of settlement of transaction and not on the date of the transaction. The billed amount will include the INR equivalent transaction amount, mark-up levied by Citibank and applicable Goods and Services Tax (GST).

Cash deposit at Citi branches – Rs 250 per deposit. The cash deposit at Citi ATMs will attract Rs 100 per deposit

Late payment charge – Late payment charges will be applicable if the Minimum Amount Due on the card is unpaid for more than three days from the Payment Due Date. Late payment charges are levied based on the total amount due on the card as of the previous statement. The payment due date can vary between 17 and 23 days from the statement date depending on the outstanding dues repayment history.

Credit card interest

Interest will be charged if the card member does not pay back the previous bill in full, by the payment due date (as per the card statement), and on cash advances from the day of advance.

Interest is charged from the date of transaction until the date of full settlement of the dues.

If this is the first Citi credit card of the card member, with the exception of Citi Ultima, then the initial rate of interest on the card is 3.25% per month (i.e. 39.0% annualized).

The interest rate can vary between 3.10% per month (i.e. 37.20% annualized) and 3.40% per month (i.e. 40.80% annualized), provided the account continues to be in good standing and all credit card bills are paid on time (at least the Minimum Amount Due).

In case of default, i.e., if the card member does not pay the Minimum Amount Due as per the last credit card statement by the Payment Due Date, the interest rate can increase up to 3.50% per month (i.e. 42.00% annualized), and will apply till the time the account is regularized plus 3 months after that.

Paying credit card bill

You can pay the Paytm first card bill on Paytm itself by going in the Paytm First card passbook.

The Paytm First card bill will be sent on a monthly basis to your registered email address by Citibank once the bill is generated.

Once the bill is generated, it will be sent to your registered email address. You can also view and download the bill by logging into Citibank website online.

RupeeIQ take – The Paytm First Card appears to be a compelling offer for regular Paytm users. The unlimited 1% cash back on transactions should act like a crowd-puller. The company is betting that once you use the 1st year free membership benefits of Paytm First programme, you will continue by paying on your own. The credit card may be the first step in collating a credit data system for Paytm. It has tonnes of digital payments data on the transaction side. With credit card data, it can right size offerings in the future as it seeks to build a full suite of credit products in the future.

Disclaimer: The article is only for informational purposes.

Author
Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. He can be contacted on kumarsroy@rupeeiq.com