HDFC Bank is implementing several modifications to its credit card policies, effective August 1, 2024, impacting various types of transactions and associated fees for credit card users.
Rental Transactions
Starting August 1, a 1% fee will be introduced for rental payments made through third-party payment apps such as PayTM, CRED, MobiKwik, and Cheq. This fee will be capped at Rs 3,000 per transaction, thereby adding an additional cost for customers who utilize these popular apps for rent payments.
Utility Transactions
A new fee structure will be applied to utility payments. Transactions below Rs 50,000 will not incur any additional fees. However, transactions exceeding this threshold will attract a 1% fee, also capped at Rs 3,000 per transaction. This update specifically targets higher-value utility payments.
Insurance Transactions
Customers will not face additional fees for insurance-related transactions under these new changes, providing some relief for those managing insurance payments.
Fuel Transactions
Fuel purchases exceeding Rs 15,000 will now incur a 1% fee, with a maximum fee limit of Rs 3,000 per transaction. Transactions involving smaller amounts will remain unaffected by this fee.
Educational Payments
A 1% fee will apply to educational payments made through third-party apps like CRED and PayTM, with the same Rs 3,000 cap per transaction. However, payments directly made through educational institutions’ websites or POS machines will be exempt from this fee. Additionally, international educational payments will not be subject to this new charge.
International Transactions
For international transactions, HDFC Bank will impose a 3.5% markup fee on all cross-currency transactions, impacting customers who frequently engage in purchases or payments abroad.
Late Payment Fees
The updated late payment fee structure will now range from Rs 100 to Rs 300, depending on the outstanding amount. This change is designed to encourage timely payments and minimize overdue balances.
Rewards Redemption Costs
The cost of redeeming rewards points for statement credit or cashback will increase to Rs 50, adding a minor expense to the rewards redemption process.
Revolving Credit Finance Charges
A finance charge of 3.75% per month will be applied to revolving credit facilities, calculated from the transaction date until the outstanding balance is fully settled. This adjustment emphasizes the importance of prompt payment to avoid substantial interest charges.
Easy-EMI Facility Processing Fee
For customers using the Easy-EMI facility, a processing fee of up to Rs 299 will be charged for converting purchases into EMIs at both online and offline stores.
Rewards Structure Update for Tata Neu Credit Cards
The rewards structure for Tata Neu Infinity and Tata Neu Plus credit card holders has been revised. Tata Neu Infinity HDFC Bank Credit Card users will earn 1.5% NeuCoins on eligible UPI transactions made with the Tata Neu UPI ID, while transactions with other eligible UPI IDs will earn 0.50% NeuCoins. Tata Neu Plus HDFC Bank Credit Card holders will earn 1% NeuCoins on eligible UPI transactions with the Tata Neu UPI ID and 0.25% NeuCoins for transactions using other eligible UPI IDs.
