AU Bank Credit Cards – Charges on Rent and Education

The year 2024 has brought much change to the credit card landscape in India. Credit cards are highly rewarding and valuable instruments that have vastly benefited their users. But now there has started a trend in changing the terms related to these. AU Bank Credit Cards have also witnessed their share of devaluations and changes.

And now the bank has brought further changes to its rent charges. Even education payments made with AU Bank Credit Cards through third-party applications and websites shall attract charges.

Have a look at all the details regarding the update on rental and education charges. These changes shall be applicable on all AU Bank Credit Cards except Corporate Cards. 

• A processing fee of 1% or Rs. 99 + GST (whichever is higher) shall be applicable on all rental transactions (MCC 6513).
• Education transactions (MCC 8211, 8220, 8241, 8244, 8249, 8299) done through third-party applications like, not limited to, CRED, PhonePe, Paytm, MobiKwik, Freecharge, etc. will be charged a processing fee of a maximum of 1% or Rs.99 + GST (whichever is higher).
• Education transactions done directly through college/school websites or POS machines at their premises will not be charged. International Education transactions shall also remain exempt from any charges.

Processing fees for these transactions of any calendar month will be charged before the 15th of the next calendar month.

Bottom Line

Many credit card issuers have started cracking down on rental, utility, insurance, and education payments. From Yes Bank to IDFC and now even AU Bank all have updated their terms of use regarding these transactions. Those individuals who used to pay their education fees through third-party applications shall now have to pay a charge of 1% or Rs.99 + GST (whichever is higher). This same charge shall also be applicable to all rental payments made with AU Bank Credit Cards.