The allure of accumulating points and miles can often drive consumer behavior. However, one aspect that many users overlook is how different payment plans affect their ability to earn these rewards.
You might be thinking of purchasing your next iPhone that costs a good RM6,000. What better way to consolidate your spending than to convert the spend to a 0% interest EPP? Well, you might want to think twice if your main goal is accumulating points and miles.
Specifically, Easy Payment Plans (EPP) options often do not contribute to points or miles accumulation. This article aims to clarify why these plans typically don't earn you points and highlight some notable examples.
Understanding Easy Payment Plans (EPP)
Easy Payment Plans have become increasingly popular, especially with the rise of e-commerce. These plans allow consumers to purchase items and pay for them in installments over a set period, often with low or no interest. This can be particularly useful for managing large expenses without paying the entire amount upfront.
An EPP is usually offered by banks and allows credit card holders to convert their purchases into installment payments. The tenure for repayment can range from 3 to 36 months, depending on the bank and the merchant. These plans are commonly used for significant purchases like electronics, furniture, and appliances.
Do EPP Plans Earn Points or Miles?
The straightforward answer is: generally, no. When you use EPP options, the transactions are often treated differently from regular credit card purchases. Here’s why:
1. Transaction Coding: Transactions made through EPP are often coded differently by the bank. They are typically considered as installment payments rather than regular purchases, which can exclude them from earning points or miles.
2. Promotional Exclusions: Many credit card reward programs explicitly exclude EPP transactions from earning points. This exclusion is usually detailed in the terms and conditions of the credit card agreement.
3. Fee Structures: Even though some EPP plans offer 0% interest, they might include other fees such as processing or administrative fees, which do not contribute to reward points.
Examples of Plans That Don’t Earn Points
UOB Visa Infinite’s Easi-Payment Plans: UOB’s Easi-Payment Plans do not earn UNIRM points.
This means that while you can benefit from the convenience of paying in installments, you miss out on accumulating points that could be converted into airline miles or other rewards.
CIMB’s Flexi Payment Plans: Similarly, CIMB’s Flexi Payment Plans do not contribute towards earning Bonus Points.
This can be a significant drawback for those who rely on credit card points to enhance their travel experiences or to redeem other rewards.
Final Thoughts
While Easy Payment Plans offer financial flexibility and convenience, it is crucial to understand their impact on your ability to earn credit card points and airline miles.
Before opting for these payment plans, consider whether the immediate financial benefit outweighs the potential loss of points or miles that could contribute to future rewards. Always read the fine print of your credit card agreement and stay informed about which transactions qualify for points accumulation.
For those focused on maximizing their points and miles, it might be better to use your credit card for regular purchases and manage your spending to avoid the need for installment plans. This way, you can ensure that every transaction contributes to your reward goals.
By staying informed and strategic about your payment methods, you can continue to make the most of your credit card rewards program.
