If you use a credit card mainly for airport lounge access, reward points, or shopping discounts, you may need to adjust your expectations in the future.
According to industry sources, banks are reviewing their credit card reward programs as rising costs and changing customer spending habits are putting pressure on profitability.
As a result, some benefits could become harder to access in the coming months.
Why Are Banks Reconsidering Credit Card Benefits?
Many customers today hold multiple credit cards to enjoy different perks such as airport lounge access, travel offers, cashback, reward points, and lifestyle discounts.
However, banks have noticed that a large number of these customers use their cards only occasionally.
While they continue to enjoy benefits, their spending is often too low to generate enough revenue for lenders.
This has prompted banks to rethink how rewards are distributed and focus more on customers who actively use their cards.
Spending May Become Necessary to Unlock Rewards
Banks are increasingly moving toward a spending-based rewards model.
Instead of offering benefits automatically, cardholders may now have to meet a minimum spending requirement every month or quarter to qualify for perks.
For example, benefits such as reward points, travel privileges, and premium services may only be available after crossing a specific spending limit.
The goal is to reward active users rather than those who keep cards only for occasional offers.
Airport Lounge Access Faces the Biggest Changes
Airport lounge access is one of the most expensive benefits offered by credit card companies, making it a major focus area for banks.
According to industry estimates, a customer may spend only a small amount on their card but still use airport lounges multiple times.
The cost of each lounge visit for the bank can be significantly higher than the revenue generated from that customer.
Because of this, many banks have already introduced spending conditions for lounge access.
Customers often need to spend a certain amount within a month or quarter before becoming eligible.
Several lenders have also reduced other premium perks, including complimentary golf sessions and lifestyle benefits.
Multiple Credit Cards, Limited Spending
Banks have observed a growing trend where consumers hold different credit cards for different offers.
For instance, one card may be used for online shopping discounts, another for airport lounge access, and a third for travel rewards.
Despite owning multiple cards, actual spending on each card often remains low.
Industry experts say this increases costs for banks without providing enough business in return.
Rising Loan Defaults Are Also a Concern
Another reason behind the review is the increasing stress in unsecured lending.
Credit card businesses earn money through transaction fees, annual charges, and interest payments.
However, customers who pay their bills on time generate little interest income, while customers who default can cause significant losses.
As a result, banks are becoming more selective and are focusing on customers with strong repayment records and consistent card usage.
What Could Change for Cardholders?
The biggest change many users may notice is the introduction of higher spending thresholds.
For example, a card that previously offered free airport lounge access from day one may now require spending between Rs 50,000 and Rs 1 lakh within a specific period before the benefit becomes available.
Similarly, some banks have already reduced or removed reward points on transactions such as rent payments, tax payments, and wallet transfers.
Banks Focus on Sustainable Reward Programs
Industry officials say lenders are gradually moving away from the strategy of attracting customers through generous freebies and easy benefits.
Instead, the focus is shifting toward profitable customers, responsible spending habits, and reward programs that are financially sustainable in the long run.
While no industry-wide rule has been announced yet, experts believe banks will continue reviewing and adjusting credit card benefits over the coming months.
Cardholders may therefore need to spend more to enjoy the same perks they currently receive.
