The State Bank of India (SBI) has hiked the prices for customers who make rent payments through credit cards. The bank will also increase processing fees on merchants via transactions. This new policy comes into effect on November 15, 2022. This news has been shared with the customers via an SMS.
As per the SMS sent to the customers, “Dear Cardholder, charges on your credit card shall be revised/levied w.e.f 15 Nov’22.” For more information, the customers are requested to visit the company’s website. The bank further said, “The processing fee on merchant EMI transactions has been revised to Rs 199 + applicable taxes from earlier Rs 99 + applicable taxes. Processing fee on rent payment transactions will be Rs 99 + applicable taxes”.
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The bank has also hiked the fee, which was Rs 99 earlier. Now, the bank will charge Rs 199 from the customers on the rent payments via credit cards. Additionally, GST will also be levied on such transactions. The new guidelines will not be liable for the rent payments made through credit cards before 15th November 2022.
SBI has now become the second bank that has taken this step. Earlier, ICICI bank also announced that it would charge a processing fee of 1% of the rent from its credit card holders. The bank has made this step effective from 20 October 2022.
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Card issuers have started putting restrictions on such transactions. Earlier, HDFC Bank also limited the reward points on rent payments through credit cards. Moreover, Yes Bank has also taken the step to limit related transactions to twice a month.
Third-party users such as Cred, Paytm, RedGiraffe, Mygate, and Magicbricks also provide customers with options to pay rent through credit cards. But in exchange, they also levy certain charges on their rent payments. In short, they charge service fees from the customers for making rent payments through credit cards.
