From tomorrow, additional charges will have to be paid for paying bills through credit cards of these banks, know the new rules

If you are a customer of private sector Yes Bank and IDFC First Bank and are using the credit cards of these banks for everything from shopping to bill payment, then this news is very important for you, because the expenditure of your pocket money is going to increase. Is. And it is going to start tomorrow from 1st May 2024. Actually, these banks have imposed additional charges on utility bill payments, which will be effective from tomorrow. Let us know by how much the price will increase.

Users will get a shock from May 1

There is shocking news for the customers of Yes Bank and IDFC First Bank. From May 1, customers of these banks will have to pay more to pay utility bills. According to reports, banks have taken this decision due to misuse of personal cards by customers and low MDR. Merchant Discount Rate or MDR is a fee that payment gateway companies charge for each credit card transaction.

Banks' earnings will increase

However, MDR charges vary per transaction and are lower than other categories in case of utility bill payments. Meaning, despite the increasing use of credit cards, the earning on utility bill payment (bank utility bill payment) is less than MDR. Now by increasing it by one percent, banks are going to increase their earnings and the burden of this is going to fall on the credit card users.

Rs 15000 Rs 15 extra on bill payment

Yes Bank and IDFC First Bank have recently announced in this regard that credit card users will be charged an additional fee of 1 percent on utility bill payments. So now according to this, if you pay your electricity bill through Yes Bank credit card and that bill is Rs 15,000, then after May 1, you will have to pay an additional charge of 15 percent i.e. Rs 15,000.