State Bank of India (SBI) has increased the prices for customers paying rent through credit cards. The bank will also increase the processing fee on the merchants through the transaction. This new policy has come into effect from November 15, 2022. This news has been shared with the customers through an SMS.
“Dear Cardholder, Charges on your Credit Card will be revised/levied w.e.f. Nov 15, 22,” read the SMS sent to customers. For further details, customers are requested to visit the website of the company. The bank further added, “The processing fee on merchant EMI transactions has been revised to Rs 199 + applicable taxes from the earlier Rs 99 + applicable taxes. The processing fee on rent payment transactions will be Rs 99 + applicable taxes.”
The bank has also increased the fee, which was Rs 99 earlier. Now, the bank will charge Rs 199 from customers on payment of fare through credit card. Also, GST will be applicable on such transactions. The new guidelines will not be liable for the payment of rent made through credit card before 15 November 2022.
SBI has now become the second bank to take this step. Earlier ICICI Bank had also announced that it will charge a processing fee of 1% of the fare from its credit card holders. The bank has made this move effective from 20 October 2022.
Card issuers have started putting restrictions on such transactions. Earlier, HDFC Bank also limited the reward points on rent payment through credit cards. Apart from this, Yes Bank has also taken the step of limiting the related transactions to twice a month.
Third party users such as Cred, Paytm, Red Giraffe, MyGate and Magicbricks also provide options for customers to pay rent through credit cards. But in return, they also levy some charges on their rent payment. In short, they charge a service fee from the customers for paying the rent through credit card.
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