HDFC Bank’s new credit card rules kick in from August: Late fee, rent, utility payments, read what changes

HDFC Bank has announced a slew of updates to the terms and charges for its credit card holders, effective from August 1. 

Here's a breakdown of the changes that will impact you if you are an HDFC Bank credit card user.

Rental transactions
If you use services such as CRED, PayTM, Cheq, MobiKwik, and Freecharge to pay rent, a 1% fee will be charged on the transaction amount, capped at Rs 3000 per transaction. This essentially means such apps and platforms, popular for earning rewards on education charges or rent payments, will face charges directly imposed by the bank.

The RBI has mandated all credit card bill payments through third-party apps be routed via NPCI’s Bharat Bill Payment System (BBPS).

Fuel transactions
Consumer Cards: No fee for fuel transactions under Rs 15,000. For transactions above Rs 15,000, a 1% fee will apply, capped at Rs 3000.
Business Cards: No fee for fuel transactions under Rs 30,000. For transactions above Rs 30,000, a 1% fee will apply, capped at Rs 3000.

Utilities
Consumer Cards: No fee for utility payments under Rs 50,000. For transactions above Rs 50,000, a 1% fee will apply, capped at Rs 3000.
Business Cards: No fee for utility payments under Rs 75,000. For transactions above Rs 75,000, a 1% fee will apply, capped at Rs 3000.

However, insurance transactions are not considered utility transactions and will not incur charges.

Educational transactions
Payments made through college or school websites or their POS machines will not incur fees. International education payments are excluded from charges. However, using third-party apps will incur a 1% fee, capped at Rs 3000 per transaction.

International/cross currency transactions
A 3.5% markup fee will be charged on international or cross-currency transactions. For certain premium cards, the markup fee will remain at 2% or 2.5%.

Late payment fees
The structure for late payment fees has been revised. Details are available on the bank’s official website.

Finance charges
If you use the revolving credit facility and pay less than the total amount due on your monthly billing statement, finance charges of 3.75% per month will apply from the transaction date until the outstanding balance is fully paid. This applies to all retail and cash transactions. For certain premium cards, the finance charge will remain at 1.99% per month.

Easy-EMI processing fee
For those opting for the Easy-EMI option at online or offline stores, an EMI processing fee of up to Rs 299 will be charged. All fees are subject to GST as per government regulations. Merchant category codes are defined by the network (Visa, MasterCard, Rupay, Diners), not by HDFC Bank. 

HDFC Bank has revised the rules for Tata Neu Infinity and Tata Neu Plus credit cards, effective August 1, 2024. Tata Neu Infinity cardholders will earn 1.5% NeuCoins on eligible UPI transactions made with the Tata Neu UPI ID, and 0.50% NeuCoins on transactions using other eligible UPI IDs. Tata Neu Plus cardholders will earn 1% NeuCoins on eligible UPI transactions with the Tata Neu UPI ID, and 0.25% NeuCoins on transactions using other eligible UPI IDs.