India’s largest private sector lender by market capitalization, HDFC Bank, has announced a significant revision in its credit card fee structure and rewards program, set to take effect from July 1, 2025. The changes will directly impact users who use their credit cards for rent payments, online gaming, and wallet loading, making these transactions more expensive. The bank has also introduced updates to the reward point structure for insurance transactions.
Here's a detailed breakdown of what HDFC credit card users can expect from next month.
Starting July 1, customers using their HDFC credit cards to pay rent will now be charged a 1% fee on the total transaction amount. However, the maximum fee per transaction will be capped at ₹4,999.
This fee applies regardless of the rental amount, and users making recurring rent payments via credit cards will need to factor in this added cost going forward.
HDFC Bank will now charge a 1% fee on monthly online gaming transactions that exceed ₹10,000. Similar to rent payments, the fee is capped at ₹4,999 per transaction.
This move appears to be aimed at discouraging excessive gaming-related spending through credit cards, while also recovering some of the costs associated with high-risk transaction categories.
Users topping up their digital wallets (like PhonePe, Google Pay, etc.) with amounts exceeding ₹10,000 in a month will also incur a 1% fee. Again, the maximum fee per transaction will be ₹4,999.
Notably, PayZapp—HDFC Bank’s own payment app—has been exempted from this charge. Customers using PayZapp to load funds will continue to enjoy fee-free transactions.
The bank has also revised the reward point accrual limits for insurance payments made via credit cards. These changes affect high-end cards such as Infinia, Infinia Metal, Diners Black, Diners Black Metal, H.O.G Diners Club, and BizBlack Metal.
Here’s the updated monthly cap on reward points:
Infinia & Infinia Metal: Up to 10,000 reward points/month
Diners Black, Diners Black Metal, H.O.G Diners Club, BizBlack Metal: Capped at 5,000 reward points/month
According to HDFC Bank’s MITC (Most Important Terms and Conditions), this limit was introduced back on December 20, 2019, with a daily maximum of ₹5,000 worth of reward points for premium cards and ₹2,000/day for all other credit cards on insurance transactions.
These updates are part of a broader trend among banks to recalibrate costs and rewards in response to changing user behavior, especially as digital and high-frequency transactions rise. HDFC Bank’s revised fee structure places clear limits on certain categories that were previously either free or lightly regulated.
Customers who frequently use their credit cards for rent payments, gaming, or wallet loading will need to reassess their monthly financial habits to avoid unnecessary charges. For those relying on credit card spending to accumulate reward points, the new caps on insurance transactions may also impact overall reward strategy.
HDFC Bank’s decision to revise its credit card terms is a reflection of evolving trends in consumer spending and digital payments. While these changes may not affect every cardholder, they are a critical update for heavy users of credit card-based transactions.
As July 1 approaches, cardholders are advised to review their transaction patterns, explore alternatives where possible (like using PayZapp), and stay updated with the latest guidelines from HDFC Bank.
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