HDFC Bank credit card terms

HDFC Bank Revises Credit Card Terms: What You Need to Know

India’s largest private sector bank, HDFC Bank, has announced significant changes to the terms and conditions for its credit card holders. These changes, effective from August 1, 2024, include new fees on various transactions such as payments through third-party apps, utility transactions, educational payments, and more. This blog post will walk you through the key changes, their implications, and how they might affect your credit card usage.

Changes in Transaction Fees

Fees on Third-Party Payment Apps

Starting August 1, 2024, HDFC Bank will charge a 1% fee on all rental transactions made through third-party payment apps like PayTM, CRED, MobiKwik, and Cheq. Each transaction is capped at ₹3,000, which means the maximum fee you could incur per transaction is ₹30.

Utility Transaction Charges

For utility transactions, the bank has set different rules based on the transaction amount:

• Transactions below ₹50,000: No additional fees.
• Transactions above ₹50,000: A 1% fee will be charged, capped at ₹3,000 per transaction.
• Insurance transactions: Exempt from any additional fees.

Fuel Transaction Charges

A 1% fee will apply to fuel transactions above ₹15,000, with a cap of ₹3,000 per transaction. Transactions below ₹15,000 will not incur any additional fees.

Educational Transaction Fees

HDFC Bank will also impose a 1% fee on educational transactions made through third-party apps such as CRED and PayTM, capped at ₹3,000 per transaction. However, international educational payments and transactions made directly through educational institution websites or their POS machines are excluded from this charge.

International Transaction Markup

For international or cross-currency transactions, a markup fee of 3.5% will be levied. This fee is applied to the total transaction amount and is in addition to any currency conversion fees.

Late Payment Charges

The late payment fee structure has been revised based on the outstanding amount, ranging from ₹100 to ₹300. This change aims to encourage timely payments and reduce the burden of outstanding balances.

Reward Redemption Fees

Customers redeeming rewards for statement credit or cashback will now be charged a ₹50 redemption fee. This fee is relatively minor but could add up for frequent reward redeemers.

Finance Charges on Outstanding Balances

For customers using revolving credit facilities, a finance charge of 3.75% per month will be applied. This charge accrues from the transaction date until the outstanding balance is fully paid.

Easy-EMI Processing Fee

An EMI processing fee of up to ₹299 will be charged for availing the Easy-EMI option at any online or offline store. This fee is in addition to any interest that might be applicable on the EMI.

Changes to Tata Neu Infinity and Tata Neu Plus Credit Cards

From August 1, 2024, users of the Tata Neu Infinity and HDFC Bank credit card will receive:

• 1.5% NeuCoins on eligible UPI transactions using the Tata Neu UPI ID.
• 0.50% NeuCoins on transactions via other eligible UPI IDs.

Cardholders of the Tata Neu Plus HDFC Bank Credit Card will receive:

• 1% NeuCoins on eligible UPI transactions using the Tata Neu UPI ID.
• 0.25% NeuCoins on transactions using other eligible UPI IDs.

User Interaction: How Will These Changes Affect You?

We’d love to hear your thoughts on these changes. How do you think these new fees will impact your usage of HDFC Bank credit cards? Are there any specific changes you are concerned about? Share your experiences and let us know how you’re planning to adapt to these new terms.

Conclusion

The upcoming changes to HDFC Bank’s credit card terms and conditions introduce various fees that cardholders need to be aware of. Whether it’s payments through third-party apps, educational transactions, or redeeming rewards, understanding these new charges will help you manage your finances better. Stay informed and adjust your usage accordingly to minimize any additional costs.

FAQS:

1.What are the new fees for third-party payment apps starting August 1, 2024?

A.HDFC Bank will charge a 1% fee on rental transactions made through third-party payment apps, capped at ₹30 per transaction.

2.Will there be fees for utility transactions?

A. Transactions below ₹50,000 will have no additional fees. For transactions above ₹50,000, a 1% fee will be charged, capped at ₹3,000.

3.Are there any fees for fuel transactions?

A. A 1% fee will be applied to fuel transactions above ₹15,000, with a cap of ₹3,000. Transactions below ₹15,000 are fee-free.

4.What is the fee for educational transactions?

A. A 1% fee will be charged on educational transactions made through third-party apps, capped at ₹3,000. International payments and payments made directly through educational institutions are exempt.

5.How much is the international transaction markup fee?

A. There will be a 3.5% markup fee on international or cross-currency transactions, in addition to currency conversion fees.

6.What are the new late payment charges?

A. Late payment fees will range from ₹100 to ₹300, depending on the outstanding balance.

7.Is there a fee for redeeming rewards?

A. Yes, a ₹50 fee will be charged for redeeming rewards for statement credit or cashback.

8.What are the finance charges on outstanding balances?

A. A finance charge of 3.75% per month will apply to outstanding balances from the transaction date until paid in full.

9.Are there any fees for using the Easy-EMI option?

A. An EMI processing fee of up to ₹299 will be charged, in addition to any applicable interest.

10.What changes are there for Tata Neu Infinity and Tata Neu Plus credit card users?

A. Tata Neu Infinity cardholders will earn 1.5% NeuCoins on Tata Neu UPI transactions and 0.50% on other eligible UPI transactions. Tata Neu Plus cardholders will earn 1% and 0.25% NeuCoins, respectively.

HDFC Bank credit card terms

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