1% fee will have to be paid on rent payment by ICICI Bank credit card.
The bank has not yet told why it has imposed this charge.
ICICI has become the first bank in India to take such a charge.
New Delhi. If you have an ICICI Bank credit card, then on Monday you must have received a message from the bank. It was written that from October 20 i.e. from today, there will be a charge of 1 percent on the rent payment made with the credit card of ICICI Bank. This message is for those people who pay their rent through apps like Cred, RedGiraffe, Paytm or MagicBrick.
Let us tell you that ICICI has become the first bank in India to do this. Till now no bank or credit card company had levied any charges on rent payment. However, after taking these steps by ICICI, it is now feared that other financial institutions may also follow the same path.
What did you pay till now?
Suppose you are paying rent through an online platform, then that platform charges you 0.46-2.36 per cent of every transaction as convenience fee. This fee works as an alternative to the Merchant Discount Rate (MDR). Usually, the platform that completes this transaction takes MDR from the merchant, but in case of rent payment, the landlord is the merchant who does not make any payment on this transaction. That’s why the platform takes this money from the renter. The charges levied by ICICI will be different from what is already being charged by the platform.
Why did the bank charge the fee?
According to an article in Mint, so far the bank has not given any name to this fee, so there is no official information about why it will be charged. However, it is possible that this is being done to prevent misuse of the rent payment facility to maintain credit rotation. Experts believe that customers send money to their family or friends by adding them as landlords. After this the money in their account is converted into cash and there is no provision for any charge on it. Whereas if you use a credit card to withdraw money from an ATM, then you have to pay a fee of 2.5-3 percent.
FIRST PUBLISHED : September 20, 2022, 18:16 IST