It’s very simple! Every transaction using a credit card adds reward points to it. Hence, every swipe makes you richer by a preset amount of reward points. Generally you get one point per Rs. 100-250 spent. This, however, depends on the every card. Also it differs from bank the bank.

Also, banks offer more points on co-branded cards. For instance, State Bank of India gives one point per Rs 40 spent on its Gold Card and eight points per Rs 100 on its co-branded Tata Card.

The value of each reward point depends on the bank, and varies across credit cards and banks. Explains Sachin Khandelwal, head (cards), ICICI Bank, "The value of a point can be anywhere between 30 paise to a rupee and is also a function of the merchant partner in case of co-branded cards." For example, the value of one point on the SBI Gold Card is 70 paise, while it is Re 1 on the SBI-Tata Card.

However, with the advantage of a high reward, a co-branded card comes with its own limitations. The limitation with most accelerated reward points on co-branded cards is that they can be redeemed only against products and services of the partnered establishment.

Also, these points get accumulated only when one swipes the card to purchase a product. The card doesn’t give any reward points for cash withdrawals, if any.