Online shopping in India has become a part of our daily life. Whether it’s ordering food from Swiggy, booking movie tickets on BookMyShow, or buying the latest smartphone on Flipkart or Amazon, we all look for ways to save money. And that’s where credit cards step in like a hero.
But have you ever wondered, “Arre yaar, how do these credit cards actually give discounts?” Let’s break it down in a simple way. At PrkshAdvisors, we make sure you understand not just how to use your credit card, but also how to get the maximum benefit out of it.
Why Do Banks Give Discounts on Credit Cards?
Banks and online shopping platforms (like Amazon, Flipkart, Myntra, etc.) tie up with each other to encourage more people to shop. It’s like a win-win:
- For banks: More people swipe (or tap) their credit card, and banks earn small charges from merchants.
- For shopping platforms: More people buy products when they see “10% instant discount” banners.
- For us (customers): We save money. Simple, right?
So basically, these discounts are not random. They’re a result of partnerships between banks and e-commerce platforms.
Types of Discounts You Get with Credit Cards
1. Instant Discount
This is the most common one. For example, during the Flipkart Big Billion Days or Amazon Great Indian Festival, you’ll often see banners like:
“Get 10% Instant Discount with HDFC Bank Credit Cards.”
Here, the moment you pay with your HDFC credit card, the discount is applied right away. No waiting, no extra steps.
2. Cashback Offers
Some cards don’t give an instant discount but offer cashback after your purchase. For example:
- You buy a phone worth ₹20,000 using your ICICI Bank credit card.
- The offer says “Flat 5% cashback”.
- After 2-3 billing cycles, ₹1,000 gets credited back to your card account.
It’s like shopping today and getting a surprise pocket-money return later.
3. Reward Points Redemption
Every time you swipe your credit card, you earn reward points. Later, you can redeem these points to shop online or get discounts.
For example:
- SBI Card users can redeem points for e-vouchers on Amazon, BigBasket, or Cleartrip.
- Axis Bank EDGE Reward Points can be used on Flipkart or Myntra.
So instead of spending cash, you’re basically shopping with your collected points.
4. Bank-Specific Shopping Portals
Some banks in India have their own exclusive shopping portals. For instance:
- HDFC SmartBuy
- ICICI Rewards Portal
When you shop through these portals using your credit card, you get extra discounts or higher cashback compared to normal shopping.
5. No-Cost EMI & Bonus Discounts
Many times, banks tie up with sellers to give No-Cost EMI options. Along with EMI, you might also get a small additional discount.
Example: During Diwali sales, you might see “Buy with ICICI Credit Card No-Cost EMI + Extra ₹1,500 off.”
Real-Life Example (Desi Style)
Imagine this:
Rohit wants to buy a new phone worth ₹30,000. He waits for the Amazon Great Indian Festival Sale. The offer says:
- 10% instant discount with SBI Credit Card (max ₹1,500 off)
Rohit pays using his SBI card, instantly saves ₹1,500, and also earns some reward points. Basically, the phone that was ₹30,000 now costs him ₹28,500. Bhai, paisa bachana bhi ek art hai!
How You Can Maximise Credit Card Discounts
At PrkshAdvisors, we always guide users to be smart with credit cards. Here are some pro tips:
- Keep Multiple Cards (Smartly):
If you have cards from HDFC, ICICI, and SBI, chances are one of them will always have an offer during sales. - Check Sale Banners Properly:
Don’t just rush. Sometimes offers have conditions like “Minimum transaction ₹5,000” or “Maximum discount ₹1,500”. - Combine with Coupons:
Sometimes, you can apply platform coupons along with card discounts for double savings. - Use During Big Sales:
Save your big purchases (mobiles, appliances, laptops) for Amazon, Flipkart, or Myntra festive sales. Card discounts are highest then. - Pay On Time:
Discount le liya toh mast hai, but always pay your bill on time. Otherwise, interest charges will eat up your savings.
Do Credit Cards Actually Help Save Money?
The short answer: Yes, if you use them wisely.
Credit cards are like a double-edged sword. On one side, they give you instant discounts, cashback, reward points, and EMI options. On the other side, if you overspend or delay payments, you’ll lose more money in interest.
So the trick is simple:
👉 Shop smartly, pay bills on time, and enjoy the perks.
Final Thoughts
Credit cards are not just for borrowing money. They’re powerful tools that can actually help you save big on online shopping. From instant discounts to cashback and reward points, the benefits are everywhere — especially during India’s mega sales.
At PrkshAdvisors, we always say: “Use your credit card like a friend, not like a loan.” If you shop carefully, every online order can feel like a small saving victory.
So next time you see “10% Instant Discount with XYZ Bank Credit Card”, you’ll know exactly how and why it works.