ICICI Bank credit card users will now have to pay 1% fee for paying rent
The domestic lender is informing its customers through an SMS, which reads:
“Dear Customer, starting 20-Oct-22, all transactions on your ICICI Bank Credit Card towards rent payment will be charged a 1% fee.”
No bank nor credit card company was levying a such fee on such transactions and ICICI bank is the first to introduce a fee on rent payments made through its credit cards
Even though ICICI Bank has still not revealed the reason for the fee being charged
Tenants who use credit cards to pay rent via credit cards through platforms like Cred, Paytm Mygate, RedGiraffe and Magicbricks are likely to be impacted
Platforms facilitating such transactions usually charge a convenience fee on each transaction.
Since the merchant in the rent payment feature is the landlord, who would not pay a fee for receiving rent
These platforms charge users paying rent in the form of a transaction fee.