Finance Desk: Beginning November 15, SBI Card will charge a processing fee for rent payments made using credit cards. The rent payments that are made by credit card will incur a fee of Rs 99 in addition to the Goods and Services Tax (GST), as stated in an SMS that was sent to customers by SBI.
In addition, the processing fee that is charged for EMI transactions made by merchants will be adjusted by SBI Cards. The corporation has decided to increase the cost from the previous value of Rs 99 to Rs 199. In this instance, the GST will be charged at the rate of 18 percent as well.
The term “merchant EMI” refers to purchases made by a card member at any point of sale or e-commerce website for an amount more than Rs 2,500, where the card user has the option to convert the purchase amount into EMI payments.
RedGiraffe, Cred, Paytm, and Magicbricks are just a few of the third-party websites and applications that accept credit card payments for rent payments. These payments are among the biggest monthly expenditures that individuals could be required to bear. It’s possible that some people struggle to make their rent payments on time on occasion. Credit cards are an acceptable form of payment for the rent in these kinds of situations. Credit Card holders may, however, have issues following the introduction of the new regulations.
In the past, ICICI Bank has requested that its customers pay a fee of 1% as a levy for paying rent beginning on October 20, 2022. Cardholders that use their credit cards to pay housing rent through platforms such as Cred, RedGiraffe, Mygate, Paytm, and Magicbricks, amongst others are effected.
On the other hand, HDFC Bank capped the number of reward points that customers could earn through rent payments at 500, while Yes Bank restricted such transactions to only twice a month.