Scapia Federal Credit Card Devaluation

In June 2023, Federal Bank and Fintech partner Scapia launched a revolutionary travel credit card. The Scapia Federal Card gained popularity relatively fast and then experienced a series of mishaps. Many users from January 2024 started reporting sudden drops in their credit card limits, dampening the card’s reputation as those with high limits of ₹1 lakh were reduced to meager ones of ₹20,000. Then, in March 2024, the ultimate mishap took place. The Reserve Bank of India banned the issuance of co-branded Federal Bank Credit Cards, which included Scapia Cards. Now, nearly five months since there has been no new issuance of the Scapia Federal Bank Credit Card, there has been an announcement of the devaluation of several card features and benefits. These new changes shall be implemented from 7th September 2024.

Features such as access to airport lounges based on spending, waiver of fuel surcharge, fair usage policy on utility, telecom, and cable expenses, and changes in interest rates have been impacted.

Look at all the features of the Scapia Federal Credit Card that shall be devalued from 7th September 2024.

Airport Lounge Access on Spends of ₹10,000 or Above

To access unlimited domestic lounge benefits, you must have spent ₹10,000 or more with your Scapia Federal Credit Card in the previous billing cycle. This updated benefit will be applicable for statements generated from October onwards. For statements generated in September, the existing ₹5,000 spending threshold will still apply.

New Cap and Charges on Utility, Cable, and Telecom Transactions

• 10% Scapia Coins on Utility, Telecom, and Cable Transactions up to ₹20,000 in a billing cycle (MCC: 4900, 4812, 4814, 4816, and 4899). Transactions exceeding ₹20,000 are not eligible for rewards.
• Spending over ₹50,000 in a billing cycle on Utility, Telecom, and Cable Transactions (MCC: 4900, 4812, 4814, 4816, and 4899) will incur an additional convenience fee of 1% plus applicable GST.
• The convenience fee is capped at ₹3,000 per transaction, excluding GST.

Increase in Interest Rates

The interest rate charged on bill payment defaults shall be revised from 3.49% to 3.75% per month. From 7 September onwards, those who cannot clear their Scapia Credit Card dues shall be charged 3.75% monthly.

Changes to Terms Regarding Fuel Transactions

• You can enjoy a 1% surcharge waiver for any fuel transaction up to ₹5,000. The surcharge waiver amount is capped at ₹500 per billing cycle.
• If your fuel spends exceed ₹50,000 in a billing cycle, you will incur an additional convenience fee of 1% plus applicable GST. The convenience fee is capped at ₹3,000 per transaction, excluding GST.
• Spends on the fuel category are now excluded from rewards.

Other Changes

• Rent spending will now incur a 1% convenience fee plus applicable GST (maximum ₹3,000 per transaction, excluding GST).
• Spends on Government Services (MCC: 9099 to 9999) and Business Services (7399, 7311, 7372, 7538, 7832, 7392, 7997, 7991, 7349, 7941) are no longer eligible for rewards.

Bottom Line

Just a few months ago, the Scapia Credit Card was the talk of the town, and everyone was excited to get their hands on this card due to its numerous travel benefits. One of its most attractive features was the free airport lounge access across several airports in India, which was unmatched as only premium cards offered access to lounges at so many airports. However, it has been quite some time since new sign-ups have been halted, and now even its features have been devalued.

While some of these changes can be considered a soft devaluation, others, such as increased spending for access to lounges, may be seen as major downsides by some customers. For those looking for an alternative to the Scapia Credit Card, we suggest the AU ixigo Credit Card. It also offers numerous travel benefits, including zero Forex charges on international transactions.