Private bank ICICI Bank has sent a message to its customers. It has been written in the message that an additional 1% fee will have to be paid for paying rent by credit card. This means that if you pay rent of Rs 10,000 with your ICICI Bank credit card, then you will have to pay an additional Rs 100 which will be the bank's fee. The bank has written in the message, "Dear customer, from October 20, 2022, a fee of 1% will be charged for rent paid from ICICI Bank's credit card.
who will have to pay the fee
Cardholders of ICICI Bank who pay rent through platforms like Cred, RedGiraffe, MyGet, Paytm, and Magicbricks will have to pay a fee of 1 percent on the rental amount. Till now no bank or credit card was charging this fee, but ICICI Bank has started it. In this work, ICICI Bank is the first bank that has started charging fees on credit card payments. It is believed that other banks can also implement this rule.
how much money will cost?
The landlord's bank account or UPI address has to be entered in the recipient option of net banking or mobile app. This information has to be given on the payment platform mentioned above, after which the transaction is done with your credit card. For this, payment platforms like Cred charge a convenience fee of 0.46 to 2.36 percent from the customer on every transaction. To compensate for the merchant discount rate i.e. MDR, online platforms charge a convenience fee from the merchant. This fee is charged instead of paying by card.
Since the landlord is the merchant paying the rent, who cannot pay any fee on receiving the rent, the payment platforms charge the user money as a transaction fee. Therefore, keep in mind that in the case of ICICI Bank, in addition to the 1% fee, the user will also have to pay a transaction fee.
Why 1 percent fee
Industry experts believe that the new fee has been imposed to prevent the misuse of funds transferred in the name of rent on payment platforms. It is seen that customers enter the names of their family and friends in the payment platform in the name of the landlord and send money to their accounts. After that, they take the cash. If cash is withdrawn from ATM with a credit card, then banks charge a fee of 2.5 to 3% for that. There is no such fee on the payment platform. To prevent this misuse, fees have been imposed on credit card payments.