Starting from August 2024, HDFC Bank will introduce several changes to their credit card policies, affecting a range of transactions including rentals, education payments, utility bills, and rewards redemption.
Third-Party Payment Apps for Rentals and Education
- Transaction Fee Introduction:
- HDFC credit card users will face a 1% transaction fee for payments made through third-party apps such as CRED, PayTM, Cheq, MobiKwik, and Freecharge for rental or educational purposes.
- This fee is limited to ₹3,000 per transaction, ensuring that the cost doesn’t spiral out of control for high-value payments.
- Exemptions:
- Payments made directly via college or school websites or their Point-of-Sale (POS) machines will not attract this fee.
- International education payments are also exempt, offering relief for those handling tuition fees abroad.
Utility Transactions Above ₹50,000
- Consumer Credit Cards:
- A new 1% fee will be levied on utility bill payments exceeding ₹50,000 using consumer credit cards.
- This fee is capped at ₹3,000 per transaction, aiming to mitigate the impact on high-value transactions.
- Business Credit Cards:
- For business credit cards, the fee cap is set significantly higher at ₹75,000, reflecting the typically larger transaction volumes in business contexts.
- Insurance Exemption:
- Transactions related to insurance are exempt from this fee, maintaining the cost-effectiveness of using credit cards for insurance payments.
Fuel Transactions Above ₹15,000
- Consumer Credit Cards:
- A 1% fee will be charged on fuel transactions above ₹15,000, capped at ₹3,000 per transaction.
- Business Credit Cards:
- For business credit card users, the fee cap is increased to ₹30,000, accommodating the higher fuel expenses often associated with business operations.
Rewards Redemption Charges
- Redemption Fee:
- HDFC credit cardholders redeeming reward points for statement credits will now incur a ₹50 fee.
- This charge does not apply to premium credit cards such as Infinia and Diners Black, ensuring that high-tier customers continue to enjoy exclusive benefits.
Increased Fees on 6E Rewards Credit Cards
- Fee Hike:
- The annual and renewal fees for 6E Rewards credit cards are being increased. The previous fee of ₹1,500 + GST for the 6E Rewards XL–IndiGo HDFC Bank Credit Card will see an upward revision, though the exact new fee has yet to be specified.
Conclusion
These upcoming changes by HDFC Bank reflect a broader trend of financial institutions adjusting their fee structures to align with evolving market conditions and consumer behaviors. For credit card users, especially those handling significant transactions in utilities, rentals, education, and fuel, it’s crucial to stay informed and adapt to these new policies to manage costs effectively.
