Update Date : 18-Dec-2024

Created Date : 31-Jan-2023

Reference : ET Wealth

HSBC informed its customers via email that it will levy processing fees on rent payments made using credit cards.
 
According to the HSBC email, “We would like to inform you that effective 25 January 2023, 1% processing fee (plus additional taxes as applicable) will be levied on all rental payments made through your HSBC Credit Card.”
 
ADDITIONAL THINGS TO NOTE:

• This fee will be levied within 30 days from the date of making the rental payment.

 
• All rental and related payments will be classified as per the merchant categories defined by Visa and Mastercard.
 
Other bank credit card issuers and banks including SBI card and ICICI Bank also charge a fee plus GST for using credit card to make rent payment.
 
 
HSBC CREDIT MINIMUM PAYMENT DUE CALCULATION
 
Apart from this, HSBC has also revised the Minimum Payment Due (MPD) calculation for HSBC Credit Cards.
 
 
HERE IS HOW MINIMUM PAYMENT DUE (MPD) IS CALCULATED

According to the HSBC official mail, here is how MPD is calculated from February 1, 2023

Higher of Rs 100 OR
Sum of:
• 100% of all Interest, Fees and Taxes billed in the current statement and

• 100% of Equated Monthly Instalment (EMI) amounts billed in the current statement (if any) and Higher of (Past due*; Over limit amount if any) and

• 1% of the billed statement balance (excluding any EMI balance, Fees, Interest and Taxes billed).
*Past due refers to unpaid Minimum Payment Due from the previous cycle.
 
 
ILLUSTRATION OF MPD CALCULATION:

Let's say you purchase a watch for Rs 7,000 on 1 November 2022 and a Shirt for Rs 2,000 on 10 November 2022. The annual Fee of Rs 750 along with GST of Rs 135 will be charged to your account on 20 November 2022.

 

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