Bank of Baroda now charges 1% on rent payments with the help of credit cards.
From swiping your credit card at the merchant (shopping mall or supermarket) to receiving a message indicating that a certain transaction was completed using your credit card, there are several steps that take place, each involving multiple parties, each doing their share to ensure the entire process happens in a matter of seconds.
Nowadays, the use of credit cards has increased. Gone are the days when customers did not even think of having one. Now consumers are aware of their needs and the cards fulfilling that. But do you know banks have started charging processing fees on credit cards? Bank of Baroda charges 1% on rent payments via credit cards.
In addition to the platform fee, the Bank of Baroda will impose Goods & Services Tax at the rates recommended by the Government on all fees, interest, and other charges. For instance, if a consumer uses their Bank of Baroda credit card to pay Rs. 10,000 for rent, a fee of 1% of Rs. 10,000, or Rs. 105.00, will be charged on the transaction.
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Additionally, tenants who pay with credit cards are assessed a 1% processing fee by ICICI Bank. The fee was imposed by ICICI Bank beginning on October 20, 2022. There is also an extra charge when using an SBI credit card to pay rent. The banking company charges Rs 99 + GST while paying the rent with an SBI card.
Other than that, financial apps like Mobiwik, Phonepe, and Paytm are also charging platform fees. These are nothing but convenience charges for making rent payments via credit cards. For example, Mobikwik charges 2.36% extra for the same.
In the case of rent payment by credit card, PhonePe charges 2% extra while Paytm charges 1.75% extra.
