SBI Cards hikes processing fee on rent payments, EMI transactions via credit card

SBI Cards has announced that it will levy processing fee on rent payments made using credit cards. As per an SMS sent to customers, the credit card company will charge Rs 99 plus GST at the rate of 18% on the rent payments made via credit card. The charges are effective from November 15, 2022.

Apart from this, SBI Cards has also revised the processing fee on merchant EMI transactions. The company has hiked the fee to Rs 199 from Rs 99 earlier. GST at the rate of 18% will also be applicable on such transactions.

Thus, if you are paying monthly rent of Rs 12000, then credit card company will charge you Rs 99 as processing fee and 17.82 as GST additionally.


As per the SMS sent to the customers, "Dear Cardholder, charges on your credit card shall be revised/levied w.e.f 15 Nov'22." For more information, the customers are requested to visit the company's website.

Other banks
Last month, ICICI Bank announced that rent payments made via credit cards will attract processing fee at 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, starting 20-10-2022, all transactions on your ICICI Bank credit card towards rent payment will be charged at 1% fee."

Rent payment via third party apps
There are usually third-party apps like Cred, Paytm, Mygate that allow individuals to pay rent via credit cards. These third-party app charge a convenience fee on making rent payments. For example, Cred charges 1% to 1.75% as service charge when rent is paid via credit card.