HDFC Bank, India’s largest bank, has announced significant changes to its credit card rules, effective from August 1, 2024. These changes will impact millions of HDFC credit card holders, with new fees and charges for various transactions. Here’s a detailed overview of the upcoming changes:
Key Changes to Credit Card Rules
1. Transaction Fees on Rent Payments
- Third-Party Apps: Payments made through third-party apps like Cred, Cheq, MobiKwik, and Freecharge will incur a 1% transaction fee.
- Maximum Charge: The fee can go up to a maximum of ₹3,000 per transaction.
2. Fuel Transaction Fees
- Transactions Below ₹15,000: No extra charge.
- Transactions Above ₹15,000: A 1% charge will be applied, with a maximum limit of ₹3,000.
3. Utility Transaction Charges
- Transactions Up to ₹50,000: No service charge.
- Transactions Above ₹50,000: A 1% charge will be applied per transaction, with a maximum limit of ₹3,000.
4. International Transactions
- Markup Charge: A 3.5% markup charge will be applied on transactions in international currency.
5. School and College Fee Payments
- Direct Payments: No service charge.
- Third-Party Apps: Payments made through apps like Cred, Cheq, MobiKwik, and Freecharge will incur a 1% transaction fee, with a maximum limit of ₹3,000. This does not include payments to international schools and colleges.
Additional Fees
Late Payment Fees
- Fee Range: Fees will range from ₹100 to ₹1,300, depending on the outstanding amount.
EMI Processing Fee
- EMI Conversion: A processing fee of ₹299 will be charged for converting purchases into EMIs through the HDFC credit card.
- Additional GST: Customers will also need to pay GST on these charges.
Effective Date
HDFC Bank has updated its official website to inform customers that these changes will be implemented starting August 1, 2024.
What This Means for Customers
These changes signify an increased cost for certain transactions and emphasize the importance of staying informed about your credit card usage. HDFC credit card holders will need to be mindful of these new fees and charges to avoid unexpected costs.
- Rent Payments: If you often pay rent through third-party apps, consider the added 1% fee and plan accordingly.
- Fuel Transactions: Be aware of the threshold for fuel transactions to avoid the additional 1% charge on larger amounts.
- Utility Payments: Monitor your utility payments to stay within the no-fee range if possible.
- International Spending: The 3.5% markup on international transactions can add up, so plan your spending carefully.
- School and College Fees: Direct payments remain fee-free, but using third-party apps will incur a charge.
The Bottom Line
HDFC Bank’s new credit card rules are set to impact many aspects of card usage. By understanding these changes and planning your transactions, you can manage these costs effectively. Stay informed and adjust your spending habits to avoid additional fees and make the most of your HDFC credit card benefits.
