now incurs a fee of 1.5% of the amount transferred, plus GST, resulting in a total charge of 1.77%." width="948" height="533" />now incurs a fee of 1.5% of the amount transferred, plus GST, resulting in a total charge of 1.77%." width="948" height="533" />
Loading funds from credit cards to the bank’s PayZapp wallet now incurs a fee of 1.5% of the amount transferred, plus GST, resulting in a total charge of 1.77%.
New rules for HDFC Bank credit card users kick in from today that will impact their reward points, redemptions, and payments. These updates include new fees and revised caps on reward points for various transactions.
From August 1, HDFC Bank has implemented a new fee structure for credit card transactions, which includes additional charges for payments using third-party apps. The bank has also capped reward points on utility spends and telecom and cable transactions at 2000 points per month across all credit cards, effective from September 1.
In a communication to its credit card holders, HDFC Bank clarified that education payments made through third-party apps like CRED, Cheq, and MobiKwik will not earn reward points. Additionally, education-related transactions will not accrue Reward Points/CashPoints on specific business credit cards, starting September 1, 2024. However, direct payments made through college or school websites or their POS machines will still earn reward points for other credit cards.
HDFC Bank has capped the redemption of reward points for Apple products to one product per calendar quarter through the HDFC SmartBuy portal, starting October 1. Similarly, redemption points for Tanishq vouchers will be capped at 50,000 points per calendar quarter.
The bank has also introduced a 1% fee on rental transactions made using third-party apps, capped at ₹3,000 per transaction. For fuel transactions exceeding ₹15,000, a 1% fee will be charged on the entire amount, also capped at ₹3,000. A new fee structure has been applied to significant utility bill payments: transactions exceeding ₹50,000 will incur a 1% fee, capped at ₹3,000 for consumer cards and ₹75,000 for business cards.
Loading funds from credit cards to the bank’s PayZapp wallet now incurs a fee of 1.5% of the amount transferred, plus GST, resulting in a total charge of 1.77%. Previously, no charges were levied for such transactions.
HDFC Bank's recent revisions aim to curb the misuse of credit cards to earn reward points through third-party apps. Credit card users often earn cashbacks, reward points, gift vouchers, and air miles for regular spends like utility bill payments, grocery purchases, entertainment, and dining. However, there have been instances where users exploited these rewards by making significant payments for business expenses using personal credit cards, particularly for utility bills.
Additional updates include revised late payment charges based on outstanding amounts, ranging from ₹100 for balances between ₹101 and ₹500, up to ₹1,300 for balances exceeding ₹50,000. Rewards redemption towards statement credits will now attract a ₹50 redemption fee, and a finance charge of 3.75% per month will apply to the revolving credit facility. Opting for the Easy-EMI option will incur a processing fee of up to ₹299.
Changes also extend to Tata Neu Credit Cards, where the cashback structure for UPI payments has been modified. Tata Neu Infinity cardholders will earn 1.5% NeuCoins on eligible UPI transactions using the Tata Neu UPI ID and 0.50% NeuCoins for other UPI IDs. Tata Neu Plus cardholders will earn 1% NeuCoins for Tata Neu UPI ID transactions and 0.25% NeuCoins for other UPI IDs.
These updates, communicated via email to cardholders, are part of HDFC Bank's broader strategy to enhance its credit card offerings, ensuring more streamlined rewards and charges.
