New Delhi: Now, State Bank of India (SBI) customers have to shell out more for transactions through credit cards! In a latest development, the SBI said it will charge a processing fee as well as tax on all EMI transactions done through its credit cards.
In a latest move, the SBI Cards & Payment Services Private Ltd (SBICPSL) announced it will charge a processing fee of Rs 99 and levy taxes on it.
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What does it mean for SBI customers?
In an email sent to customers, the credit card company has said, “Dear Cardholder, We would like to inform you that with effect from 1 Dec 2021, Processing Fee of Rs. 99 + applicable taxes will be levied on all Merchant EMI transactions done at Merchant outlet/website/app. We thank you for your continued patronage. Please click here to know more about Merchant EMI Processing Fee.”
It means that processing charges will apply to transactions successfully converted into EMIs. It is to be noted that any transaction dated before December 1, with the EMI booking occurring after December 1, will be exempted from this processing fee. Customers will get intimation on the applicability of the processing fees on EMI transactions to cardholders via charge slips while shopping at retail outlets. Those doing online EMI transactions will be intimated on processing charges on the payment page, according to Money Control report. Also, note that the processing fees will be reversed in case the EMI transaction gets canceled. However, the same will not be reversed in the case of pre-closure. Reward points will not apply for transactions converted into merchant EMIs.
When is the new rule applicable?
The new rule will be applicable from December 1, 2021. The lender will charge this processing fee on all equated monthly instalment (EMI) transactions made at retail outlets as well as e-commerce websites such as Amazon, Flipkart and Myntra.
How will it work?
Consider buying a mobile phone using your SBI credit card, from an e-commerce website under the bank’s EMI scheme. Then SBICPSL will charge you an additional fee of Rs 99 to process the transaction. It will also charge you added taxes. This additional amount will get reflected on your monthly statement of your credit card along with the EMI amount for that product.
The move is likely to affect ‘Buy Now, Pay Later’ schemes as they may become more expensive on the buyers.
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