Charges for credit card transactions; You may be aware of the processing fees charged by major banks

Today the use of credit cards has increased. Now customers are clearly aware of their needs and the credit cards that fulfill them. Many banks allow customers to pay rent using their credit cards. Paying rent by credit card is very common these days. People follow it for multiple reasons including getting rewards, maintaining liquid cash, improving credit score etc. Paying rent on time can improve your CIBIL score and earn reward points. A high credit score indicates that you are financially sound and more likely to be able to pay rent on time.

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SBI cardholders must have received a message within the last two days that the processing fee for rent payment transactions has been increased. As such, consumers should be aware that many banks have started charging processing fees on credit cards. The processing fee charged by HDFC Bank, ICICI Bank, SBI Card may be known.

SBI Card has recently clarified that it will charge a processing fee for paying monthly rent like EMI through credit card. As per an SMS or e-mail issued to customers, SBI has informed that from March 17, 2023, Rs 199 along with applicable taxes will be charged on rent payments through credit cards at Rs 99 plus applicable taxes.

ICICI Bank Credit Card has announced that it will charge an additional 1 percent fee on monthly rental payments. From October 20, 2022, a 1 percent fee will be levied on all transactions on ICICI Bank Credit Card for rent payment, private sector ICICI Bank had informed customers on September 20, 2022 via SMS.

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HDFC Bank also charges customers a processing fee of 1 percent of the total rental amount. Through the bank’s website, customers have been informed that HDFC Bank will charge a fee of 1% of the total transaction amount from the second rental transaction in a calendar month.

Apart from these banks, third-party apps like Cred and Paytm usually allow customers to pay rent using credit cards. Making rent payments through these third-party apps requires a convenience fee.

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