HDFC Bank introduces new credit card rules from August 1: What are the new changes?

HDFC Bank, India’s largest bank, has revised the terms for its credit card holders, which will become effective from August 1.

What are the new and revised HDFC credit card terms?

These are the key changes announced by the bank for credit cards:

1) 1% charge for using third-party payment apps to make rental transactions

Using HDFC credit cards through third-party payment apps such as CRED, PayTM, Cheq, MobiKwik, Freecharge, and others to make rental transactions will now lead to a 1% fee on the transaction amount, which can go up to ₹3,000 per transaction.

2) 1% charge for using third-party payment apps to make educational transactions

Using HDFC credit cards through third-party payment apps such as CRED, PayTM, Cheq, MobiKwik, Freecharge, and others to make educational transactions will also lead to a 1% fee on the transaction amount, which can go up to ₹3,000 per transaction.

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However, making transactions using HDFC credit cards through college or school websites or their POS machines won’t lead to charges. International education payments also don’t lead to charges.

3) 1% charge on utility transactions above ₹50,000

Using a consumer credit card to spend more than ₹50,000 per transaction on utilities will lead to a 1% charge, and this is also capped to ₹3,000 at max. For business cards, it is ₹75,000.

Insurance transactions are not considered as Utility transactions, so no charges will be applicable.

4) 1% charge on fuel transactions above ₹15,000

For consumer credit cards, spending more than ₹15,000 per transaction on fuel will lead to a 1% charge. This is also capped to ₹3,000 at max per transaction. For business credit cards, spending more than ₹30,000 on fuel will lead to the 1% charge.

5) Rewards redemption charges

Credit card users redeeming their reward points for a statement credit shall now be charged a fee of ₹50.

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This is not applicable for Infinia, Infinia (Metal Edition), Diners Black, Diners Black (Metal Edition), BizBlack Metal,Swiggy HDFC Bank,and Flipkart Wholesale.

6) Increased fees on credit cards

HDFC Bank is increasing annual and renewal fees for 6E Rewards credit cards. Previously, the bank was charging ₹1,500 + GST as the annual/renewal fees on 6E Rewards XL–IndiGo HDFC Bank Credit Card. Now it’ll be ₹3,000 + GST. It used to be ₹500 + GST on the 6E Rewards–IndiGo HDFC Bank Credit Card. Now it’ll be ₹1,500 + GST.

7) Processing fees to avail Easy EMI payment option

Opting for the Easy-EMI option will lead to an EMI processing fee of up to ₹299. HDFC SmartEMI is a facility offered by HDFC Bank that allows its users to convert their credit card bills into equated monthly installments (EMIs).

8) New late payment fees

The revised charges for HDFC Bank’s late payment fee structure will be between ₹100 to ₹1,300, depending on the outstanding amount.

9) International transactions

A 3.5% markup fee will be applicable for making an international transaction. This will be 2% for Infinia, Infinia (Metal Edition), Diners Black, Diners Black (Metal Edition), Biz Black Metal Card, Regalia Gold, BizPower, Tata Neu Infinity HDFC Bank, and 2.5% for 6E Rewards Indigo XL.

10) Finance Charges

Availing the revolving credit facility and then paying an amount less than the total amount as seen in the monthly billing statement, will lead to finance charges of 3.75% per month from the transaction date till the balance is paid in full.

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Finance charge will remain at 1.99% (per month) for Infinia, Infinia (Metal Edition), Diners Black, Diners Black (Metal Edition) ,BizBlack Metal.

11) Other fees

HDFC Bank has also changed rules for Tata Neu Infinity and Tata Neu Plus credit cards, with users receiving 1.5% NeuCoins on eligible UPI transactions made using their Tata Neu UPI ID.

Transactions through other eligible UPI IDs will get 0.50% NeuCoins.

Card holders of the Tata Neu Plus HDFC Bank Credit Card will get 1% NeuCoins on eligible UPI transactions using Tata Neu UPI ID, and 0.25% NeuCoins on transactions using other eligible UPI IDs.