• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

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

TechnoFinoTechnoFino is verified member.

Founder
TF Family
Founder
Admin
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)
 

Attachments

It is not devaluation at all.

HDFC needs to take lessons from 🪓🪓🤣

Only One change which is going to effect mass users is statement Cashback Redemption Charges
Now hdfc will get 50rs + 18%gst each month from regular millennia users. So all in all we will still pay 600rs + 18% gst fee yearly even after achieving the fee waiver milestone.

They need to increase the 3k max redemption point cap on millennia then this 50rs redemption fee won't matter.
 
Last edited:
No end visible for these devaluation by CC companies.

In the end, credit cards will become just credit cards. No rewards or cashback.

That will be the time to close all the cards except maybe 1
i dont think so
we saw devaluation in past as well
see when a card gets devalued
new cc gets launched somewhere taking its place
so this cycle will go on
and our beloved tf commanders will find ways very soon ..
 
Ye thread to maine bnayi thi

Kisi aur ne kaise churali🙄🙄
I just merged the threads so that they can be shared officially on Twitter. I have added credits to both handles now. I got this information from someone else and posted it in haste and saw your threads later on.
I thought baat hui hogi, this is not good @bhavyegoel
Feedback taken my lord.
Chhodo bhai
Pta chle OP bnane ki jagah ban maar de💀
Aisa kabhi nai hoga bhai. We are working on a more transparent warn and ban policy so that even the moderators or admins cant do any man marzi.
Thread Hijacked still Not updated Properly as it is applicable for All Cards🤣

Kya Fayda hijack karne ka
Have you received this mail for other cards as well?
 
So finally HDFC has started trimming rewards on Utilities and Education spending. A user has reportedly received the following email for an HDFC Moneyback Plus credit card but looks like this applies to all HDFC Credit Cards. Also, credits to @varun__goel_ and @SuperKnight who posted threads here originally.

Revisions to Your HDFC Bank Credit Card Terms Effective August 1st, 2024
Dear Valued Cardholder,
Here's an important update on your 005332 Credit Card. Effective August 15, 2024, the following revision to your HDFC Bank Credit card charges will apply.
1. Rental Transactions:
If you use services like (but not limited to) CRED, PayTM, Cheq, MobiKwik, Freecharge, and others to pay rent, a 1% fee will be charged on the transaction amount and capped at 3000 per transaction
Category. Rent

2. Fuel Transactions:
Merchant Category Codes (MCC) 6513
If you spend less than 15000 per transaction on fuel, no additional fee will be charged. However, if you spend more than 5000 per transaction on fuel, a 1% fee will be charged on the entire amount and capped at 3000 per transaction.
Category. Fuel

3. Utility Transactions:
Merchant Category Codes (MCC) 1361,5172,5541,5542,5983,9752
If you spend less than 50000 per transaction on Utilities, no additional fee will be charged. However, if you spend more than 50000 per transaction on utilities, a 1% fee will be charged on the entire amount and capped at 3000 per transaction.
Category. Utility
Merchant Category Codes (MCC) 4900
Insurance transactions will not be considered Utility transactions and hence no charge will be applicable.

4. Educational Transactions:
If you make education payments through college/school websites or their POS machines, there will be no fees. International education payments are excluded from this charge. However, on education payments through third-party apps like (but not limited to) CRED, PayTM, Cheq, MobiKwik and others, a 1% fee will be charged and capped at 3000 per transaction.
Category. Education
III
Merchant Category Codes (MCC) 8211,8220,8241,8244,8249,8299

5. Rewards Redemption towards Statement Credit:

If you redeem your rewards towards statement credit (CashBack), a ₹50 redemption fee will be charged.

Have you received any email regarding this?
There is a typo in the fuel point. 1% is applicable for transaction above 15000.

Who can put 15k worth of petrol/diesel that is 150 litres in per transaction? May be trucks??
 
Now hdfc will get 50rs + 18%gst each month from regular millennia users. So all in all we will still pay 600rs + 18% gst fee yearly even after achieving the fee waiver milestone.

They need to increase the 3k max redemption point cap on millennia then this 50rs redemption fee won't matter.
Swiggy card is making more sense now.. cashback will be directly cresited, no redemption charge.
 
MITC file me Utility ka per transaction nahi hai per month hai.

Utility Charges: 1% fee will be levied on utility transactions exceeding Rs 50,000 for consumer cards, 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.
 
All the cards will have some devaluations , it's just that they are rolling out mails at an interval of few days so hold tight and wait. Lease affected will be the super premium cards i.e. Infinia and Diners Black
 
Back
Top