Apart from this, SBI Cards has also changed the processing fee at the merchant. EMI Transactions, The company has increased the fee to Rs 199 from the earlier Rs 99. GST will be applicable on such transactions also at the rate of 18%.
Thus, if you are paying a monthly rent of Rs 12000, the credit card company will charge you Rs 99 processing fee and Rs 17.82 as GST extra.
As per the SMS sent to the customers, “Dear Cardholder, the charges on your credit card will be revised/ levied with effect from November 15, 22.” For more details, customers are requested to visit the website of the company.
other banks
last month, ICICI Bank announced that the payment of rent made through credit cards will attract a processing fee of 1%. The processing fee will be levied from October 20, 2022. As per the SMS sent by ICICI Bank to its credit cardholders, “Dear Customer, from 20-10-2022, all transaction charges on your ICICI Bank credit card for payment of rent will be charged at 1% fee.”
Pay rent through third party apps
There are usually third-party apps like Cred, Paytm, Mygate which allows individuals to pay rent through credit cards. These third-party apps charge a convenience fee on paying the rent. For example, paying rent via credit card charges 1% to 1.75% as credit service charge.