SBI credit card to charge Rs 99+ for EMI purchases from December 1st
SBI Credit Card To Charge Rs 99+ For EMI Purchases From Dec 1st | Photo credit: Getty
New Delhi: The SBI credit card in its email to its customers informed that a processing fee of Rs 99 plus tax will be levied on all EMI purchase transactions as of December 1, 2021.
The company will charge the processing fee for all EMI transactions made at point-of-sale and e-commerce sites such as Amazon and Flipkart. These fees are in addition to the interest charges for converting the purchase to an IME. The company informed its customers of the new fee by email.
This will likely affect the booming purchases made by cardholders using EMI payment options offered by merchant websites such as ‘Buy Now, Pay Later’ (BNPL) etc. This can make BNPL purchases with SBI credit cards more expensive.
The credit card company, in an email sent to customers today, said: 99+ applicable taxes will be levied on all merchant EMI transactions made at the point of sale / website / l application of the merchant. We thank you for your continued patronage. Please click here to learn more about merchant EMI processing fees.
Processing fees apply to transactions successfully converted to IME. Any transaction made before December 1 with the EMI reservation made after December 1 will be exempt from these processing fees. The company will indicate the applicability of the processing fee on EMI transactions to cardholders via billing slips when making purchases at retail outlets. For online EMI transactions, it will show the processing fee on the checkout page. Processing fees will be waived if the EMI transaction is canceled. However, it will not be the same in the event of pre-closure. Reward Points will not apply to transactions converted to Merchant EMI.
How does this work?
Suppose you buy consumer electronics using SBI credit card from one of the e-commerce websites under their EMI program. Then SBICPSL charges you Rs 99 as a handling fee plus applicable taxes. This will be reflected on your monthly credit card statement along with the EMI amount.
With the introduction of processing fees on credit cards to convert transactions into installments, âbuy now, pay laterâ programs may be affected as they become expensive.