HDFC Bank, India’s largest bank, has announced significant revisions to the terms for its credit card holders, which will take effect from August 1, 2024. These changes include the introduction of new transaction charges and increases in some existing fees. Below are the key updates that cardholders should be aware of:
Charges on Utility and Fuel Transactions
Consumer credit card transactions exceeding ₹50,000 on utilities will incur a 1% fee, capped at ₹3,000. For business cards, this threshold is ₹75,000. Insurance transactions are excluded from this fee. Additionally, for consumer credit cards, spending more than ₹15,000 per transaction on fuel will incur a 1% fee, also capped at ₹3,000. For business credit cards, the threshold for fuel transactions is ₹30,000.
Rewards Redemption Charges
Credit card users redeeming their reward points for a statement credit will now be charged a fee of ₹50. This charge is waived for certain premium cards, including Infinia, Infinia (Metal Edition), Diners Black, Diners Black (Metal Edition), BizBlack Metal, Swiggy HDFC Bank, and Flipkart Wholesale.
New Late Payment Fees
HDFC Bank has revised its late payment fee structure, which will now range from ₹100 to ₹1,300, depending on the outstanding amount.
Processing Fees for Easy EMI Payment Option
Opting for the Easy-EMI payment option will now incur a processing fee of up to ₹299. This allows cardholders to convert their credit card bills into equated monthly installments (EMIs) for easier repayment.
Charges on Rental and Educational Transactions via Third-Party Apps
Using HDFC credit cards through third-party payment apps such as CRED, PayTM, Cheq, MobiKwik, and Freecharge for rental and educational transactions will now incur a 1% fee on the transaction amount, capped at ₹3,000 per transaction. However, direct transactions through college or school websites or their POS machines, as well as international education payments, remain exempt from this charge.
International Transactions
A 3.5% markup fee will be applied to international transactions. This fee is reduced to 2% for certain premium cards, including Infinia, Diners Black, Biz Black Metal Card, Regalia Gold, BizPower, and Tata Neu Infinity HDFC Bank, and to 2.5% for the 6E Rewards Indigo XL.
Finance Charges
Availing the revolving credit facility and paying less than the total amount due will result in finance charges of 3.75% per month. Premium cards like Infinia and Diners Black will continue to enjoy a lower finance charge of 1.99% per month.
Changes to Tata Neu Credit Cards
Changes have also been made to the Tata Neu Infinity and Tata Neu Plus credit cards. Cardholders will now receive 1.5% NeuCoins on eligible UPI transactions using their Tata Neu UPI ID. Transactions through other eligible UPI IDs will receive 0.50% NeuCoins. Tata Neu Plus cardholders will earn 1% NeuCoins on transactions using the Tata Neu UPI ID and 0.25% on other eligible UPI IDs.
Increased Fees on 6E Rewards Credit Cards
HDFC Bank is increasing the annual and renewal fees for its 6E Rewards credit cards. Previously, the bank charged ₹1,500 + GST for the 6E Rewards XL–IndiGo HDFC Bank Credit Card, which will now be ₹3,000 + GST. Similarly, the 6E Rewards–IndiGo HDFC Bank Credit Card fee will increase from ₹500 + GST to ₹1,500 + GST.
These revisions are part of HDFC Bank’s efforts to align its credit card offerings with market trends and customer needs, ensuring a balanced approach to rewards and charges. Cardholders are advised to review these changes and adjust their usage accordingly to optimize their benefits and manage their finances effectively.
