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State Bank of India (SBI) has increased the rent for customers who pay with credit cards. At the same time, the bank will increase the transaction fees on the merchants. This new policy will take effect on November 15, 2022. This news has been shared with customers via SMS.
“Dear Cardholder, the charges on your credit card will be changed/paid on November 15,” according to an SMS sent to customers. The processing fee on merchant EMI transactions has been revised to Rs 199 + applicable taxes from earlier Rs 99 + taxes. The processing fee on rent payment transactions will be Rs 99 + applicable taxes.
The bank also increased the fee from Rs 99 earlier. Now, the bank will charge Rs 199 from customers on rent payments through credit cards. In addition, GST will also be charged on such transactions. The new guidelines will not be responsible for rent payments made by credit cards before November 15, 2022.
SBI has now become the second bank to take this step. Earlier, ICICI bank had also announced that it will charge credit card holders 1% of rent. The bank took this step from October 20, 2022.
Card issuers have begun placing restrictions on such transactions. Earlier, HDFC Bank also restricted reward points on rent payments through credit cards. In addition, Yes Bank has also taken steps to limit related transactions to twice a month.
Third-party providers such as Cred, Paytm, RedGiraffe, Mygate, and Magicbricks also provide options for customers to pay rent through credit cards. But in return, they also get some fees on their rent payments. In short, they charge service fees to customers for paying rent with credit cards.
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