ICICI bank is one of India's leading private sector banks, with more than 11 million credit card users. A recent announcement by the bank has made the credit holders of ICICI Bank a little concerned. The bank has introduced a fee for payment of the rent through credit cards for the users. The fee of one per cent will be charged from 20 October 2022 for rent payment.
ICICI bank sent a message to the card holders stating, "Dear Customers, starting 20-Oct-22, all transactions on your ICICI Bank Credit Card towards rent payment will be charged at a 1% fee."
Does Every Credit Card Service Provider Charge a 1% Fee For Rent Payments?
No, the latest announcement of a 1% fee on the rent payment for credit holders has made ICICI Bank the first to charge a fee on rent payment. Other credit card service providers charge a certain amount of fee, but the fees are not specifically the service charge. It is a platform charge with an additional tax. But now, ICICI Bank will charge a service charge of 1% with the other charges it used to deduct.
What Is The Reason For This Service Charge?
The bank has not officially stated any reasons for this move, but many sources state different rent payment service charges. One possible reason is a misuse of this service; most users were using it as a tax-free way to convert credit card money into cash. Usually, bank charges up to 3% to take cash from credit card, but by making it known as the landlord, user ignores this tax.