HDFC Bank Credit Cards Huge Devaluation Effective From 1st August 2024 | Extra Fees On Utility, Education Payments

[TechnoFino]

A few months ago, Yes Bank, IDFC First Bank, and several other banks started charging extra fees on utility, education, and a few other category payments. Recently, HDFC Bank has also joined this trend. Now, HDFC Bank customers need to pay additional service fees for making payments for utilities, education, and similar categories using HDFC Bank credit cards. Let's learn more about the applicable fees.

Rent Pay Transactions: 1% fee on transaction amount will be levied on rental transactions done on any applicable merchant for the month.
Fee capped at Rs 3000 per transaction.

Utility Transactions: 1% fee will be levied on utility transactions exceeding Rs 50,000 for consumer cards and Rs.75,000 for business cards in a month Fee will be applied on the total transacted amount.
Fee capped at Rs 3000 per transaction.

Education Transactions: 1% fee will be levied on Education transactions done through third party applications like (but not limited to) CRED, PhonePe, No-broker, Cheq etc.
Fee capped at Rs 3000 per transaction.
Education transactions done directly through college / school websites or through POS machines at their premises will not be charged. International Education transactions will not be charged.

Rewards Redemption Fee: ₹99 Per redemption request - Applicable for all cards other than Infinia/ Infinia (Metal Edition)/ Diners Black Metal Edition/ Diners Black Card/ BizBlack Metal Card/ H.O.G Diners Club Credit Card. Rewards Redemption Fee will not be charged on redemption of reward points towards cashback.

Cashback Redemption Charges: ₹50 per cashback redemption (Excluding Infinia , Infinia (Metal Edition), Diners Black, Diners Black (Metal Edition), Biz Black, Biz Black (Metal Edition), Tata Neu Infinity, Tata Neu Plus, Swiggy , Flipkart Wholesale ,Marriot Bonvoy, IndiGo 6E Rewards, IndiGo 6E Rewards XL , Intermiles)

The above service fees apply to all HDFC Bank credit cards. As you may already know, HDFC Bank has a fair use policy for all their credit cards, which means they have set a limit on the maximum rewards you can earn per statement cycle. For example, with the HDFC Bank Infinia Credit Card, you can earn a maximum of 2 lakhs, and with the Diners Black Card, 75K. I believe this is an effective way to prevent credit card misuse by business spenders. HDFC Bank has demonstrated to the industry that it is possible to curb misuse without devaluing the entire product. By capping the maximum rewards you can earn in a statement cycle and charging extra fees on low-margin categories like utility and education after certain spending limits are reached, they have struck a balance.

I think this devaluation will not affect majority of HDFC Bank credit card users, as the spending limits for each category are decent enough for a normal person. I believe other banks should follow this approach and implement fair use policies rather than devaluing the entire product.

Source Attached: HDFC Bank Credit Card MITC (25th June, 2024)

 

[bigbyte]

Just received email for DCB too.
Nothing mentioned regarding reward redemption fee.

 

[muk9998]

Tata neu was also devalued with changed terms in UPI spends.

Let's see what happens to regalia!

kya changes hua uska bhai ?

Q.1 50K+ upi ke through clg ko send karunga to usme bhi charges lagega kya muje ?

 

[HumorSimpson]

They are slowly changing the gears..
Whether their 5th gear stops just before dcb and infinia or not, need to wait and see

Gears change and fears charge

 

[varun__goel_]

kya changes hua uska bhai ?

Q.1 50K+ upi ke through clg ko send karunga to usme bhi charges lagega kya muje ?

No charges for txn on pos/qr/websites

Only charged when done via 3rd party apps like cred/paytm to someone's account no/upi id (like rent)

 

[lijov]

The limits seem fair.. I believe it is not going to affect most of the users.

 

[SSV]

The limits seem fair.. I believe it is not going to affect most of the users.

Common sense prevailed...
It should not be classified as a HIGE devaluation .. it is actaully a good measure from long term perspective ..

 

[Ash8]

Got mail for swiggy hdfc card.

 

[neo.puneet]

for at least dcb, i can say this is not a devaluation at all. it will only hurt a little to money rotaters or maybe genuine rent payers. this is absolutely nothing if compared to 🪓 bank

 

[SSV]

for at least dcb, i can say this is not a devaluation at all. it will only hurt a little to money rotaters or maybe genuine rent payers. this is absolutely nothing if compared to 🪓 bank

Good observation..
If it hurts money rotators it a good thing..

BTW, you don't need the word bank right at the end of your post... just symbol is enough..

 

[BVC]

They are slowly changing the gears..
Whether their 5th gear stops just before dcb and infinia or not, need to wait and see

Received on Infinia too.

 

[SSV]

Received on Infinia too.

Congratulations to us !!

 

[BVC]

Congratulations to us !!

That's fine, Infinia is not meant for Utilities and Fuel. For the past 7 months not done a single Utility or Fuel transaction on Infinia.

 

[SSV]

That's fine, Infinia is not meant for Utilities and Fuel. For the past 7 months not done a single Utility or Fuel transaction on Infinia.

Actually to be honest.. this is not at all a devaluation for a nomral CC user.. just a fine tuning exercise ...
It is like this, suppose say we have a car ./ motor cycle ..It needs servicing once a year to run smoothly for the next year..
This exercise is just like that.. That is how I see it..

 

[Oscar]

Just received for Infinia

 

[Ash8]

Hope that this exercise doesn't bring any further devaluations on HDFC CCs.

 

[SSV]

Received love letter from HDFC regarding my Tata Neu infinity card a few minutes ago…
Eagerly waiting for infinia!!!

Another Love letter for my Infinia Metal from my lovely Banking partner HDFC ...
So they peaked on the top gear now..

 

[BVC]

Actually to be honest.. this is not at all a devaluation for a nomral CC user.. just a fine tuning exercise ...
It is like this, suppose say we have a car ./ motor cycle ..It needs servicing once a year to run smoothly for the next year..
This exercise is just like that.. That is how I see it..

Yes CC's used for personal use this is not devaluation. But might take dent on achieving annual spend milestone for some users (Minimal).

 

[bing1309]

No point for this and its pure devaluation and no fair use policy applies to pay at all from these cards its just to ensure for business purpose you are not to use because you are not buying business cards but buying independent cards and do business and finally just raise hand when bankrupt and indvidual person just cannot pay. when there is no reward points credited at first place for these spends what is bank trying to achieve?. 2nd if you put capping whats the point of capping when no reward points are given. 3rd top cards in metal has surcharges for fuel that's not forgone. 4th milestone etc are not considered, 5th have put multiple limits value per month in voucher and processing fee and max use of vouchers are not avaliable. I did not understand what's this for people who use fair? What is fair as per hdfc? Just don't use our cards? Keep on watching the game all essential spends will be removed only a spend where it's not categorised only for that you will get. (Clothes will be removed, food delivery apps, essential apps like bigbasket blinkit and what not.). Major hit will be incase you applied bank offer of card to get discount for that transction no reward points. I wish If other countries offer cc with 0 forex I will shift to other banks who decently offer for rewards for each spend rather than such nonsense in credit card restrictions.

 

[Riva]

So for Infinia, no redemption fee on reward points and no change in forex (still 2%)

 

[bonheur]

This is the kind of devaluation I can get behind. Weed out the rotators and abusers but keep essential features intact.