This is important to note if you are a HDFC Bank credit cardholder. Starting on July 1, 2025, HDFC Bank will begin charging a 1% transaction charge for some specific credit card spends. This is part of a significant overhaul of the bank’s credit card policies to also include changing the way they manage reward points, lounge access restrictions, and other all around new policies. Here is a simple breakdown of the changes, who they will apply to, and how you can spend wisely.
What’s the New 1% Transaction Fee All About?
HDFC Bank will only introduce a 1% transaction charge on the following types of transaction beginning on July 1, 2025
1. Rent Payment
- A 1% transaction fee will apply to all rent transactions.
- The fee is capped at ₹4,999 per month.
2. Online Gaming (Skill-Based)
- A 1% transaction fee will apply to people who spend more than ₹10,000 on gaming sites such as Dream11, MPL, RummyCulture or others in a month.
- The fee is capped at ₹4,999 per month.
3. Wallet Loading
- A 1% transaction fee will be charged for loading (prepaying) into a wallet (except PayZapp), above ₹10,000 in a month.
- The fee is capped at ₹4,999 per month.
4. Utility Bill Payments
A 1% transaction fee will apply for utility bill payments exceeding ₹50,000 in a month for personal cards or ₹75,000 in a month for business cards, on utilities like electricity, water or broadband.
Also read: Travel More, Spend Less: How to Maximize Rewards Using Travel Credit Cards!
Changes to Rewards Points
1. Insurance Payments:
- Infinia Cards: Max of 10,000 reward points per month
- Diners Black Cards: Max of 5,000 points per month
- Most other cards: Max of 2,000 points per month
- No limit for Marriott Bonvoy HDFC Bank Credit Card users
2. Online Gaming:
- No rewards points will be given for any spends on skill-based gaming
- Lounge Access Rule Change
- Heads up for people holding Tata Neu Infinity or Tata Neu Plus HDFC Bank credit cards:
- As of June 10, 2025, there will no longer be direct swipe access to domestic airport lounges.
- Instead, you will be granted access to lounges based on quarterly vouchers based on your spending behavior.
As a Cardholder, What should you do?
- Check your monthly expenditure in those affected categories. If you want to steer clear of incurring fees, then do your best to ensure that your rent, gaming, and wallet loads are within the free limits.
- When practical, use alternative payment methods (UPI, net banking) for larger payments, such as utility or rent payments.
- Look into your card type — if you are reaching limits on your rewards or starting to lose benefits, it may be worthwhile to consider switching to another HDFC credit card or looking into other banks.
- Keep track of rewards and fees using either the HDFC mobile app or net banking, so you can keep on top of your credit card expenses.
Final Thoughts
HDFC Bank’s forthcoming changes reinforce the point that no matter how great the perks may seem, a credit card can always have evolving terms. While the fees themselves may seem minor, together and if you are making larger payments in those categories regularly, they may become financially significant. If you stay well-informed of these changes and adjust your habits accordingly, you may be able to continue benefitting from your card — without incurring any additional expenses.
Written by Pranjal Data
