ICICI Bank to charge 1% fee on Rent Payments via Credit Cards

A lot of individuals prefer using credit cards for rent payments as it seems to be a more convenient method for them. In the last few months, several card issuers have changed their rent payment terms & conditions, and the ICICI Bank has also come up with an update recently. Earlier, there was no convenience fee charged by ICICI Bank credit cards, but the bank has now introduced a nominal fee on rent payments via credit cards, which will be applicable from October 20, 2022. You might be paying a convenience fee that is charged by the rent payment platforms, but there was no such fee charged by the ICICI Bank itself and this is not the same case anymore. If you have an ICICI Bank Credit Card, keep reading for further information on this:

1% Convenience Fee On Rent Payments

If you use your ICICI Bank Credit Card for rent payments, you will now have to pay a convenience fee of 1% on all rent payment transactions. ICICI Bank is the first card issuer so far to introduce a convenience fee on rent payments via credit cards. This new change will come into effect on October 20, 2022. If you are an ICICI Bank Credit cardholder, you might also have received an email/SMS regarding the same from the bank or you will receive it soon.

Moreover, you should be aware of the fact that this 1% fee will be charged in addition to the convenience fee that the rent payment platforms like MagicBricks, RedGirraffe, etc, charge for rent payment via credit cards. So, your total rent payment spends using ICICI Credit Cards is not going to be a bit costlier than before.

Changes In Rent Payment Terms of Other Card Issuers

Some other popular card issuers, like HDFC Bank, Axis Bank, etc, have also updated their rent payment terms and conditions in the last few months. The following is the detailed information regarding the same:

• HDFC Bank: HDFC Bank, in June 2022, revised its rewards structure on rent payments via credit cards. Under this, the bank put a cap on reward points that can be earned on rent payment transactions. The maximum cap on reward points earning via premium cards like HDFC Infinia is up to 2,000 Reward Points, and that on basic cards is up to 500 Reward Points per month. Read more
• Axis Bank: In March 2022, Axis Bank announced that the Flipkart Axis Bank Credit Card and Ace Credit Cardholders will not earn any cashback on rent payments anymore. Earlier, the cardholders used to earn 1.5% cash back through Flipkart Axis Bank Card and 2% through the Ace Credit Card. Read more

Bottom Line

The 1% convenience fee introduced by the ICICI Bank might be disappointing news for some cardholders who used to make rent payments via ICICI Bank Credit Cards. But, there would surely have been some genuine reason why the card issuer came to this decision. It might be due to the misuse of credit cards’ rent payment feature or some other reasons.