Credit Card: There is an important news for Yes Bank and IDFC First Bank customers. From May 1, customers of these banks will have to pay a higher amount to pay their bills. Yes Bank and IDFC Bank recently announced that they will be charging 1 percent on credit card bill payments.
Credit Card
There is an important news for Yes Bank and IDFC First Bank customers. From May 1, customers of these banks will have to pay a higher amount to pay their bills. Yes Bank and IDFC Bank recently announced that they will be charging 1 percent on credit card bill payments. That is, if your electricity bill is Rs 15,000 and you pay through Yes Bank and ICFC First Bank credit cards, you will have to pay an extra Rs 15.
Banks have set limits so that Yes Bank or IDFC First Bank credit card users do not have to pay extra charges on every bill payment.
According to the report, Yes Bank customers will not be charged any additional charges if they make bill payments below Rs 15,000 through their cards and will be charged an additional charge of 1 percent if they pay more than this.
In this case, IDFC First Bank has fixed its limit at Rs 20,000. Apart from this, both the banks will also levy 18 percent GST.
The question arises as to why banks are charging this fee. There are two reasons for this. The first reason is that the merchant discount rate i.e. MDR is low. MDR fees are fees that payment gateways charge companies on each credit card transaction. MDR in utility bill payment is lower than other categories.
#PersonalFinance | Utility bill payments via @YESBANK and @IDFCFIRSTBank credit cards will get costlier, starting May 1
Here’s why ⬇️| #CreditCards #CreditCardPayments @anshul91_m https://t.co/54uwVzrc1R
— CNBC-TV18 (@CNBCTV18News) April 18, 2024
This means that banks earn less when you pay utility bills with a credit card. There are also fears that some companies may misuse personal credit cards to pay their business-related utility bills.
Generally, any household utility bill is less than the credit limit on a personal card. In such a situation, companies can take advantage of it. Additional charges will prevent this.
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