SBI Credit Card Fees: State Bank of India, the largest commercial bank India (SBI) will levy processing fee on all EMI transactions done through its credit cards from Wednesday, December 1. Not only this, the bank has also announced that it will charge a processing fee on transactions done through the same process. In a move announced last month, SBI Cards and Payment Services Pvt Ltd (SBICPSL) said it will charge a processing fee of Rs 99 and tax it. This means that the customers of the bank will now have to pay a higher transaction amount if they buy anything through the SBI Credit Card EMI scheme. The new rule will come into effect from today. This will also be applicable to all Equated Monthly Installment (EMI) transactions done at retail outlets as well as e-commerce websites like Amazon, Flipkart and Myntra.
On November 12, ie 18 days ago, the bank had issued a notification regarding this step. NS SBI credit card holder The notification was sent through an e-mail earlier in the day. “Dear Cardholders, we would like to inform you that with effect from 01st December 2021, the processing fee of Rs.99+ will be levied on all Merchant EMI transactions done at the Merchant Outlet/Website/App. We thank you for your continued patronage. Please click here to know more about Merchant EMI processing fee,” SBICPSL’s mail read. All SBI credit card holders had received this message. So SBI customers, who want to buy something on EMI through the bank’s credit card, will be eligible to come. under the new policy.
The bank said these rates would be applicable over and above the interest charges for converting one’s purchases into monthly payments, a service currently used by lakhs of citizens.
The move has come as a setback for many merchants, who waive EMI transactions by paying interest to the respective banks. This, for the customer, appears as a ‘zero interest’ scheme on the purchase of an item from the merchant. In this case too, from December 1, SBI credit card holders will have to pay a processing fee of Rs 99 as per the new rules implemented by the state-owned lender.
According to media reports, the processing fee of Rs 99 will be charged only on those transactions which have been successfully converted into Equated Monthly Installments or EMI transactions.
On the other hand, the processing fee will be refunded in case the EMI transaction fails or is cancelled. However, it will not be reversed in case the EMI is pre-closed. For transactions done before December 1, in which payment starts at a later date, the new rule will not be followed.
But how does this new rule even work? Suppose you buy a mobile phone using your SBI credit card on an e-commerce website, for example Amazon, under the EMI scheme of the bank. Then SBICPSL will charge you an additional fee of Rs.99 for processing the transaction. It will also charge you additional tax. This additional amount will be reflected in your monthly statement of your credit card along with the EMI amount for that product.
As per reports, the new move is likely to impact ‘buy now, pay later’ plans as they may be more costly on buyers. These options are usually provided by e-commerce websites.
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