HDFC Bank's new credit card rules to kick in from August 1. Top points here

Credit card rules: HDFC Bank will be implementing some new and significant rules on terms and charges for its credit card customers, which will be effective from August 1, i.e., Thursday. As per the HDFC Bank website, these new tweaks will be applicable on rental payments, educational expenses, and several other transaction categories.

Here are the details:

1. Rental transactions

One significant update to highlight is the recent implementation of a 1% fee on rental payments processed via third-party applications like PayTM, CRED, and MobiKwik. It's important to note that this fee has a limit of Rs 3,000 per transaction.

2. Educational transactions

Educational transactions made through third-party applications such as CRED and PayTM will be subject to a 1% fee, with the maximum cap set at Rs 3,000 per transaction in India. Conversely, international educational payments and transactions conducted directly through educational institution websites or their point-of-sale (POS) machines are exempt from this additional charge.

3. Utility transactions
 
The bank has introduced a revised fee schedule for utility payments. Under this new structure, transactions below Rs 50,000 will not be subjected to any additional charges. Transactions surpassing this threshold will now carry a 1% fee, capped at a maximum of Rs 3,000 per transaction. Notably, transactions pertaining to insurance will be exempt from these updated fees.

4. Fuel transactions

Fuel transactions will now have a 1% fee for amounts exceeding Rs 15,000, with a maximum fee cap of Rs 3,000 per transaction. Transactions below this threshold will remain exempt from additional charges.

5. International transactions

For international or cross-currency transactions, there is a 3.5% markup fee that will be implemented. This fee increases the expenses incurred by users when making purchases or transactions outside their home country.

6. Late payment fees
 
The late payment fee structure has been updated, with fees now ranging from Rs 100 to Rs 300, depending on the outstanding amount.
 
7. Rewards redemption fee
 
Redemption of rewards points for statement credit or cashback will now cost Rs 50.

8. Finance charge

The finance charge for customers utilising revolving credit facilities is established at 3.75% per month. This charge is applicable from the transaction date until the outstanding balance is completely settled.

9. Easy EMI facility

For customers selecting the Easy-EMI facility, there will be a processing fee of up to Rs 299 when opting for this service at any online or offline store. This may result in a slightly higher cost for converting purchases into EMIs.

10. Late payment charges

HDFC Bank has recently updated its late payment fee policy, which now includes charges determined by the outstanding balance of the account.

For account balances ranging from Rs 101 to Rs 500, a fee of Rs 100 will be applied. The late payment fee escalates for higher outstanding amounts, reaching Rs 1,300 for balances exceeding Rs 50,000.

Outstanding amount    Revised charges
≤ Rs 100                      Nil
Rs 101 - Rs 500          Rs 100
Rs 501 - Rs 1,000       Rs 500
Rs 1,001 - Rs 5,000    Rs 600
Rs 5,001 - Rs10,000   Rs 750
Rs 10,001 - Rs 25,000 Rs 900
Rs 25,001 - Rs 50,000 Rs 1,100
> Rs 50,000                  Rs 1,300