ICICI Bank has announced several updates to its credit card charges that will take effect starting November 15, 2024. These revised fees impact various transactions, including fuel, education, utility payments, rent payments, and cash handling. Here’s a detailed look at how these changes could affect ICICI credit card holders. ICICI Bank hikes credit card charges for fuel, utility bills, and rent payments. Check the new charges.
New Charges on Fuel Transactions
Fuel purchases over ₹50,000 will incur a 1% transaction fee. However, if cardholders use an Amazon Pay ICICI credit card, the usual 1% fuel surcharge will be waived for these transactions. The bank specifies that if fuel is purchased from “off-us” terminals (non-ICICI terminals), the fuel surcharge reversal will not include Goods and Services Tax (GST).
Education Payments
For those using ICICI credit cards for educational expenses, payments made directly to schools, colleges, or international institutions will now be exempt from transaction fees. However, a fee will apply if the payment is processed through a third-party gateway.
Utility Payment Fees
ICICI will implement a 1% transaction fee on utility payments when the transaction exceeds ₹50,000. This applies to bills such as electricity, water, and telecom. For amounts below ₹50,000, no extra fee will be charged.
Cash Payment Fees at Branches
If cardholders pay their credit card bill with cash at an ICICI Bank branch, they will be charged ₹100. This fee remains consistent with previous policies and applies to all cash transactions handled at ICICI branches.
Dial-a-Draft Transactions
For cardholders using the Dial-a-Draft service, which allows credit card users to create a demand draft, a fee of 3% of the draft amount, with a minimum charge of ₹300, will be applied. This service is generally used where digital payments aren’t an option, though it comes with relatively high fees.
Rent Payment Charges
ICICI credit card users will now face a 1% charge for all rent payments processed through their credit cards. Additionally, rent payments will not earn reward points, specifically for transactions marked with the Merchant Category Code (MCC) 6513, which denotes rental services.
Interest Charges and Payment Defaults
Interest will apply to any outstanding balance if the full amount due isn’t paid by the due date. This interest is calculated on the outstanding balance and any new purchases made until the due amount is settled. Cash advances will also incur interest from the transaction date until the payment date. Additionally, in cases of payment default, the interest rate could increase, potentially reaching 3.8% per month, equivalent to 46% annually.
Summary of Key Fees
- Fuel: 1% transaction fee if the purchase is over ₹50,000.
- Education: No fee for direct payments to institutions; fees apply if routed through third-party gateways.
- Utilities: 1% fee on transactions exceeding ₹50,000.
- Branch Cash Payments: ₹100 fee.
- Dial-a-Draft: 3% of the draft value (minimum ₹300).
- Rent: 1% fee, no reward points.
- Interest: Up to 3.8% monthly (46% annually) in case of default.
These changes reflect ICICI’s adjustments to align fees with various transactions, ensuring transparency while encouraging responsible usage. Understanding these updates can help frequent users manage their credit card expenses more effectively.
