look news india
Bank Credit Card Rules: HDFC Bank is going to make several changes from August 1, 2024, which will directly impact its credit card holders. From next month, all rental transactions made through third-party payment apps like PayTM, CRED, MobiKwik and Cheq will attract a fee of 1% on the transaction amount, with a maximum limit of ₹3,000 per transaction.
A two-tier fee structure will apply to utility transactions. Transactions below Rs 50,000 will remain unaffected, while transactions above that amount will attract a 1% fee, with a maximum limit of Rs 3,000 per transaction.
Notably, insurance-related transactions are exempted from these new charges, providing some relief to customers managing insurance payments.
Fuel transactions will now attract a 1% fee on amounts above ₹15,000, with a maximum cap of ₹3,000 per transaction. This change will apply only to large fuel purchases, while smaller transactions will remain fee-free.
Educational payments made through third-party apps like CRED and PayTM will also attract a 1% fee, with a limit of ₹3,000 per transaction. However, payments made directly through educational institutions' websites or POS machines will not attract this fee, and international educational payments are excluded from this new fee.
For international transactions, HDFC Bank will levy a 3.5% markup fee on all cross-currency transactions, which will significantly impact customers who frequently make purchases or payments abroad.
Additionally, the late payment fee structure has been revised, now ranging from ₹100 to ₹300 depending on the outstanding amount. This change is designed to encourage timely payments and reduce overdue balances.
Redeeming reward points for statement credit or cashback will now attract a fee of Rs 50, adding a nominal cost to the process of redeeming benefits.
For those using revolving credit facilities, a finance charge of 3.75% per month will be applied, calculated from the date of the transaction until the outstanding balance is paid in full. This change underlines the importance of timely payments to avoid significant interest charges.
Customers opting for the Easy-EMI facility will have to pay a processing fee of up to Rs 299 for availing this option at any online or offline store, making it a bit expensive to convert the purchase into an EMI.
HDFC Bank has also updated the rewards structure for Tata New Infinity and Tata New Plus credit card holders. Tata New Infinity HDFC Bank credit card users will earn 1.5% NewCoins on eligible UPI transactions made using the Tata New UPI ID, while transactions with other eligible UPI IDs will earn 0.50% NewCoins. Similarly, Tata New Plus HDFC Bank credit card holders will earn 1% NewCoins on eligible UPI transactions with the Tata New UPI ID and 0.25% NewCoins for transactions using other eligible UPI IDs.
