HDFC Bank, in a latest development is set to implement certain key changes to its credit card policies scheduled to be effective from August 1,2024 regarding various types of transactions and fees.
Here is the breakdown of the key updates:
1. Rental Transactions: New 1% Fee
Scheduled to be effective from August 1, 2024, the HDFC bank's credit card holders will see an update of 1 per cent fee on rental transactions made through popular third-party payment apps such as PayTM, CRED, MobiKwik, and Cheq.
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This fee will be capped at Rs 3,000 per transaction, introducing an extra cost for those using these apps to pay rent.
2. Utility Transactions
HDFC Bank has also announced a bifurcated fee structure for utility transactions in which payments below Rs 50,000 will not incur any fees.
Apart of this, the transaction exceeding this limit will attract a 1 per cent fee is also capped at Rs 3000 per transaction.
3. Exemption for Insurance Payments
To the latest update, the bank has also exempted insurance-related transactions from these new fees.
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4. Fuel Transactions
For fuel transactions, as per the new update, purchases over Rs 15,000 will incur a 1 per cent fee, with a maximum cap of Rs 3,000 per transaction.
Although, smaller fuel purchases will remain free from this charge.
5. Educational Payments
Educational payments made via third-party apps like CRED and PayTM will face a 1 per cent fee, with a Rs 3,000 cap per transaction.
However, Payments made through educational institutions' websites or POS machines directly will not incur this fee. Moreover, International educational payments are also exempt from this new charge.
7. International Transactions
For international transactions, the Bank will impose a 3.5 per cent markup fee on all cross-currency transactions.
8. Revised Late Payment Fees
Furthermore, the late payment fee structure has been now been updated, ranging from Rs 100 to Rs 1,300 based on the outstanding amount.
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9. Rewards Redemption Fee
Redeeming rewards points for statement credit or cashback will now cost Rs 50, adding a minor expense to the benefits redemption process.
However, this fee will not apply to select premium cards.
10. Updated Rewards Structure for Tata Neu Credit Cards
The bank has also updated the rewards structure for Tata Neu Infinity and Tata Neu Plus credit card holders.
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Tata Neu Infinity HDFC Bank Credit Card users will earn 1.5 per cent NeuCoins on eligible UPI transactions made using the Tata Neu UPI ID, and 0.50 per cent NeuCoins for transactions with other UPI IDs.
Tata Neu Plus cardholders will earn 1 per cent NeuCoins with the Tata Neu UPI ID and 0.25 per cent with other UPI IDs.
