Current credit card It has become a thing of daily use. Credit cards are being used extensively for everything from shopping to utility bill payments. However, now those who use credit cards excessively are going to get hit. Banks will levy 1% extra charge on utility bill payments through credit cards from 1st of next month. Let me tell you that recently Yes Bank and IDFC First Bank announced that they will charge an additional 1 percent on utility bill payments from their credit cards from May 1, 2024. If you have a Yes Bank credit card, there will be a free usage limit of Rs 15,000. Whereas for IDFC First Bank it is Rs 20,000.
This is how extra charges will be collected
This means that if a Yes Bank credit card holder pays utility bills of less than Rs 15,000 in a billing cycle, they will not be charged any additional charges. However, if a Yes Bank credit card user makes a payment of more than Rs 15,000, they will be charged an additional 1 percent fee and 18 percent GST on it. The same rule is applicable on IDFC First Bank Credit Card, but the free usage limit is Rs 20,000 instead of Rs 15,000.
Many business people use their personal credit cards to pay utility bills related to their business. Whereas the total utility bill of a typical household generally does not exceed Rs 10,000 to Rs 15,000. Banks generally offer higher rewards on personal credit cards than business credit cards. Thus, banks may find it difficult to provide reward points on business transactions.
what can you do?
Some banks may offer discounts on utility bill payments by credit card. Contact your bank to see if they have such an offer. Consider using debit card, net banking, or UPI (Unified Payments Interface) for your utility bill payments. These options generally do not involve any additional fees.
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