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.