HDFC Bank imposes fee on credit card rent payments via CRED, Paytm, others

Earlier this year, ICICI Bank and SBI Cards stopped offering reward points for rent payments on several credit cards

HDFC Bank has rolled out a new fee structure for rent payments made via its credit cards. Effective immediately, customers will be charged a 1% fee for rent payments made through platforms like CRED, Paytm, Cheq, MobiKwik, Freecharge, and others. This fee is capped at Rs 3,000 per transaction, as communicated to customers via email on June 26.

Changes across the industry

This move by HDFC Bank follows similar adjustments by other credit card issuers regarding reward points for rent payments. Earlier this year, both ICICI Bank and SBI Cards revised their policies, discontinuing reward points for rent payments on several of their credit cards.

 

ICICI Bank and SBI Cards adjustments

Since February 1, 2024, ICICI Bank has ceased awarding reward points for rent payments and e-wallet loading transactions on most of its credit cards. However, certain cards, like the Amazon Pay ICICI Bank credit card, remain exempt from this change.

Similarly, SBI Cards stopped offering reward points for rent payments from April 1, 2024. This change affects a range of cards, including AURUM, SBI Card Elite, SBI Card Elite Advantage, SimplyCLICK SBI Card, and others.

Upcoming changes to Tata Neu credit cards

In addition to the new rent payment fee, HDFC Bank will introduce changes to its Tata Neu Infinity and Tata Neu Plus credit cards starting August 1, 2024. These adjustments will modify the cashback structure for UPI payments made using these cards.

Tata Neu Infinity credit card

From August 1, 2024, users of the Tata Neu Infinity HDFC Bank Credit Card will earn 1.5% NeuCoins on eligible UPI transactions made with Tata Neu UPI ID. Transactions using other eligible UPI IDs will earn 0.50% NeuCoins.

Tata Neu Plus credit card

Similarly, holders of the Tata Neu Plus HDFC Bank credit card will earn 1% NeuCoins on eligible UPI transactions made with Tata Neu UPI ID. Transactions using other eligible UPI IDs will earn 0.25% NeuCoins.

These changes reflect a broader trend in the banking industry, where credit card issuers are increasingly adjusting their fee and reward structures to adapt to evolving market conditions.