If you are a credit card user of State Bank of India (SBI Card), then this news is useful for you. Actually, the credit card holders of SBI have got a big shock. The company has increased the processing fee on Rent Payments through credit cards. SBI Card has told in the SMS sent to the users that now they will have to pay Rs 199 + taxes instead of Rs 99 + taxes.
These changes in SBI will be effective from March 15, 2023. Earlier, SBI Card had increased the processing fee on rent payment for credit card users to Rs 99 + taxes in November 2022.
Other banks are also charging
ICICI Bank is charging a processing fee of 1% of the rent from its credit card holders. The processing fees have come into effect from October 20, 2022. HDFC Bank has limited the reward points to 500 on rent payment through credit. 1% of the transaction amount + taxes applicable from the second rental payment of the month.
Bank of Baroda is also charging 1% fee on rent payments through credit card from February 1, 2023. From March 3, 2023, credit card holders of IDFC First Bank will have to pay 1% charge on rent payments through credit cards. Kotak Mahindra Bank has started charging 1% of the transaction amount + tax from February 15, 2023, subject to certain conditions.
Apart from credit card companies, third-party platforms also charge.
Many tenants enter the landlord’s bank account details or UPI address in the recipient’s option on platforms like Paytm, Cred, NoBroker, PayZap, Red Giraffe, Mobikwik, PhonePe and credit Used to pay by card. However, these third-party platforms charge a convenience fee for making rent payments through credit cards.
Mobikwik- 2.36% extra charge for rent payment by credit card PhonePe- 2% extra charge for rent payment by credit card Paytm- 1.75% extra charge for rent payment by credit card
