sbi credit card Notified in email to its customers that processing fees All EMI purchase transactions above Rs 99 will be taxed with effect from December 1, 2021. Processing charges will be levied for all EMI purchase transactions done at merchant outlets, e-commerce websites and apps using SBI Credit Cards. This is likely to impact the increasing purchases made by cardholders using EMI payment options offered by merchant websites such as ‘Buy Now Pay Later‘(BNPL) etc. it can make BNPL Buying with SBI Credit Card is expensive

In an email sent to customers today, the credit card company said:
Dear Cardholders, We would like to inform you that with effect from 01st December 2021 the processing fee will be Rs. 99+ applicable taxes will be levied on all Merchant EMI transactions done at the Merchant Outlet/Website/App. We thank you for your continued patronage. Please click here to know more about Merchant EMI processing fee.

To understand this, suppose you buy a mobile phone from an e-commerce platform under its EMI scheme. If you pay using SBI credit card, the card company will charge you Rs 99 as processing fee plus tax. This fee will appear in your Credit card details With EMI amount.

This processing fee is in addition to the interest amount charged by the card issuer. Sometimes merchants give discount by paying interest amount on such transactions making it zero cost EMI to the customers. Even in such transactions, this processing fee will be an additional cost.

This processing fee will be levied only on those transactions which are successfully converted into EMI transactions. However, the processing fee will be refunded only in case the EMI transaction is cancelled.

The applicability of processing fee on EMI transactions will be communicated to SBI credit cardholders by the merchants through charge slip (for offline transactions) / payment page (for online transactions).