New Delhi: Now, customers of State Bank of India (SBI) will have to pay more for transactions through credit cards! In a latest development, SBI said that it will levy processing fee as well as tax on all EMI transactions done through its credit cards.
In a latest move, SBI Cards and Payment Services Private Limited (SBICPSL) announced that it will charge a processing fee of Rs 99 and tax the same.
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What does this mean for SBI customers?
In an email sent to customers, the credit card company has said, “Dear cardholders, we would like to inform you that with effect from 1st December 2021, a processing fee of Rs 99 + applicable tax will be levied on all Merchant EMI transactions. Merchant outlets/ on the website/app. We thank you for your continued patronage. Please click here to know more about Merchant EMI Processing Fees.
This means that the processing charges will be applicable on the transaction successfully converted into EMI. It is to be noted that EMI bookings made after 1st December along with any transaction prior to 1st December will be exempted from this processing fee. Customers will be notified of the applicable processing charges on EMI transactions to the cardholders through charge slips while making purchases at retail outlets. As per the Money Control report, those doing online EMI transactions will be informed on the processing fee on the payment page. Also, note that the processing fee will be refunded in case the EMI transaction is cancelled. However, it will not be refunded in case of pre-closure. Reward points will not be applicable for transactions converted into Merchant EMI.
When does the new rule apply?
The new rule will come into effect from December 1, 2021. The lender will charge this processing fee on all Equated Monthly Installment (EMI) transactions done at retail outlets as well as e-commerce websites like Amazon, Flipkart and Myntra.
How will this work?
Consider buying a mobile phone using your SBI credit card from the e-commerce website under the bank’s EMI scheme. 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 on the monthly statement of your credit card as well as the EMI amount for that product.
The move is likely to hit ‘buy now, pay later’ plans as they may be more costly on buyers.
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