Credit card changes in 2024: Check out fees and rewards by different banks

Updates include extra fees and some offers being discontinued

Banks in 2024 changed credit card policies for fees, rewards and transactions. These modifications are crucial for cardholders to understand as they may affect their financial planning and spending habits.

 

Key credit cards changes in 2024

 

ICICI Bank: There will be no rewards on government transactions (government transactions refer to financial transactions involving government agencies, departments, or institutions). The bank said the surcharge waiver will only be available for spends up to Rs. 1,00,000 per month, with no waiver applicable beyond this limit.

 

Spa access that was previously available through DreamFolks card has been discontinued. In terms of annual fee reversal, the bank has excluded rent, government, and education payments from the criteria, while also lowering the threshold for eligibility to Rs. 10 lakh per annum, down from Rs. 15 lakh. Lastly, a 1 per cent fee will be charged on utility spends exceeding Rs. 50,000 and on fuel transactions over Rs. 10,000.

 

 

YES Bank: Reward point redemption for travel is capped at 70 per cent. Auto-debit return, late payment, and finance charges are revised. Lounge access now requires higher quarterly spending.

 

Axis Bank: Finance charges increased to 3.75 per cent monthly (up from 3.60 per cent), along with updates to NACH failure fees, cash payment charges, late fees, and reward redemption costs.

 

AU Small Finance Bank: Ixigo AU Credit Card reward structure has been updated for both domestic and international transactions, effective December 22, 2024.

 

SBI Bank: Finance charges have been revised to 3.75 per cent per month for unsecured cards (excluding Shaurya and Defense cards), effective November 1, 2024. This is an increase from the current rate of up to 3.50 per cent per month (42 per cent annually) from the transaction date.

 

Additionally, a 1 per cent fee will be charged on utility payments exceeding Rs 50,000, effective from December 1, 2024. The utility payments cover services such as telephone, mobile, electricity bills, and insurance premiums. Furthermore, there have been updates to the pricing structure for services like electricity bill payments and loan costs.

 

HDFC Bank:

 

A 1 per cent fee (capped at Rs 3,000) applies to utility bills over Rs 50,000 and fuel transactions above Rs 15,000.

 

Rs 50 reward redemption fee for statement credits.

 

Annual fees for 6E Rewards cards increased: Rs 3,000 for XL and Rs 1,500 for standard.

 

The number of reward points that can be redeemed for Apple products and Tanishq vouchers has been capped. These changes apply to Infinia and Infinia Metal Cards.

 

Bank of Baroda: Starting June 23, 2024, interest on unpaid dues rises to 3.57 per cent monthly (45 per cent annually). Over-limit fees increased to 2.5 per cent of the exceeded amount or Rs 500 (whichever is higher). Cardholders are advised to monitor spending via the OneCard app.

 

“When credit card companies announce changes to benefits, fees, or features, customers should view this as an opportunity to reassess their financial choices," said Adhil Shetty, chief executive officer of Bankbazaar.com.

 

"First, carefully review the updated terms and understand how these changes will impact your spending habits, rewards, and overall costs. Look for areas where the revisions may increase your expenses, such as higher finance charges, added fees for utility payments, or reduced rewards on categories you frequently use,” he said.