HDFC Bank has revised terms for credit cards: Here are the key changes (2024)

HDFC Bank is back with more revised terms for its credit card portfolio, effective August 1. These revised terms are in line with those of other banks, which have introduced charges on rental and educational transactions using third-party platforms, charges for large utility bill payments and more.

The revision in terms by HDFC bank comes after the recent announcement of a revised cashback structure on Swiggy HDFC Bank Credit Card and NeuCoin rewards on UPI transactions for the Tata Neu Infinity HDFC Bank Credit Card.

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

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

All rental transactions using HDFC Bank credit cards through third-party payment apps such as CRED, PayTM, Cheq, MobiKwik, Freecharge, and others will now levy a 1 percent fee on the transaction amount, capped at Rs 3,000 per transaction, for payments.

1% charge for using third-party payment apps for educational transactions

Payment for an educational expense using HDFC Bank credit cards through third-party payment apps such as CRED, PayTM, Cheq, MobiKwik and others will also incur a 1 percent fee on the transaction amount, capped at Rs 3,000 per transaction. However, if you make educational transactions through college or school websites or their POS machines using HDFC Bank credit cards, there will be no charges. Also, international education payments are excluded from this charge.

1% charge on utility transactions above Rs 50,000

The bank is introducing a charge for large utility bill payments made with HDFC Bank credit cards. For instance, if you spend less than Rs 50,000 per transaction on utilities, no additional charges will be levied. However, if you spend more than Rs 50,000 per transaction on utilities, a 1 percent fee will be charged on the entire amount and capped at Rs 3,000 per transaction.

“This change is unlikely to impact the majority of consumer credit card users, as it’s uncommon for individuals to make such large bill payments in a single transaction,” says Ankur Mittal, co-founder of Card Insider, a platform that tracks the credit card business.

1% charge on fuel transactions above Rs 15,000

If you spend less than Rs 15,000 per transaction on fuel, no additional fee will be charged by the bank. However, if you spend more than Rs 15,000 per transaction on fuel, a 1 percent fee will be charged on the entire amount and capped at Rs 3,000 per transaction.

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Rewards redemption charges

The bank is introducing rewards redemption charges. All credit card users who used to redeem their reward points for a statement credit shall now be charged a fee of Rs 50. “This is one of the most significant changes for many entry-level HDFC Bank credit card users in my opinion,” says Mittal. If you have reward points and plan to redeem them for credit against your statement, do so before August 1 and save Rs 50, he advises.

Increased fees on credit cards

HDFC Bank is increasing annual and renewal fees for 6E Rewards credit cards. Previously, the bank was charging Rs 1,500 plus GST as the annual/renewal fees on 6E Rewards XL–IndiGo HDFC Bank Credit Card and Rs 500 plus GST on the 6E Rewards–IndiGo HDFC Bank Credit Card.

Effective August 1, the annual/renewal fees on 6E Rewards XL – IndiGo HDFC Bank Credit Card will be Rs 3,000 plus GST, while it will be Rs 1,500 plus GST for the 6E Rewards – IndiGo HDFC Bank Credit Card.

Also read |Citibank credit cards to become Axis: Know your fees, features, benefits

Processing fees to avail Easy EMI payment option

If you opt for the Easy-EMI option at any online or offline store, an EMI processing fee of up to Rs 299 will be charged by the bank. HDFC SmartEMI is a facility offered by HDFC Bank that allows its users to convert their credit card bills into equated monthly installments (EMIs).

Revised late payment fees

HDFC Bank has also revised its late payment fee structure. The revised charges will be between Rs 100 to Rs 1,300, depending on the outstanding amount slab of the bank.

Key takeaways

According to experts tracking credit cards, the revised terms announced by HDFC Bank are not brutal in devaluation those of other leading banks. The charges on utility bill payments are similar to those of Yes Bank and IDFC First Bank, which were recently announced.

One significant takeaway from the revised terms is that HDFC Bank credit cardholders should now avoid third-party payments. “Apps and platforms such as CRED, Paytm, CheQ, and Mobikwik, which were previously used to earn rewards when paying education charges or rent, will now incur charges from the bank itself,” says Mittal.