Home NEWS ICICI Bank to impose 1% charge on rent payments through credit card; find details here

ICICI Bank to impose 1% charge on rent payments through credit card; find details here

by universalverge

File picture of an ICICI Financial institution department. Reuters

ICICI Financial institution has elevated the load on bank card holders by implementing a brand new scheme. On Tuesday, the non-public sector lender notified its purchasers by way of an SMS {that a} one per cent payment could be utilized to any transactions made with their ICICI Financial institution bank card for the aim of paying lease.

This might be relevant from 20 October 2022. With this, it has develop into the primary financial institution to cost clients who pay their lease with bank cards. This payment has been launched to cease credit score rotation by bogus lease funds.

Purpose for this extra cost:

In keeping with trade analysts, purchasers use third-party websites so as to add their relations or associates as landlords and ship funds to their financial institution accounts to show them into money at no further expense. Whereas utilizing a bank card to make money withdrawals from ATMs, banks usually cost between 2.5 and three per cent.

Lease will be paid with bank cards on a variety of third-party websites, together with RedGiraffe, Mygate, Cred, Paytm, and Magicbricks, though, they impose a sure processing payment.

Clients solely must enter their bank card data on the platform, choose the “Pay lease” possibility, and enter data like their identify, checking account quantity, IFSC code, or landlord’s UPI (Unified Funds Interface) handle earlier than deciding on the suitable cost technique.

Impression on bank card holders:

If a shopper makes use of his bank card to pay Rs 15,000 in lease per thirty days, the platform that processes the cost will moreover cost him anyplace from 0.4 per cent to 2 per cent. The quantity that might be debited from his bank card might be Rs 15,150 if the platform fees 1 per cent for the transaction. ICICI Financial institution will now add its 1 per cent transaction payment to the shopper’s invoice (Rs 15,150), making the overall quantity as a result of financial institution about Rs 15,300. This means that on this occasion, the 1 per cent levy will end in a further burden on ICICI Financial institution bank card holders of about Rs 1,812 per yr.

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