YES Bank and IDFC First Bank introduce surcharge on utility transactions

Utility expenses encompass telecommunications, electricity, gas, water, internet services, and cable services. In recent months, numerous credit card issuers have excluded categories like utility bills, insurance, and rent payments from their reward-earning schemes.

Following Axis Bank's significant devaluation of its credit cards, other issuers are reassessing their card offerings and the revenue they generate.

Yes Bank will impose a surcharge of 1% plus GST when the total of utility bill payments made with a credit card exceeds USD 180 in a statement cycle. This utility surcharge does not apply to Yes Bank's Private credit card. Hence, if your combined utility bill transactions (gas, electricity, and internet) are USD 180 or less in a statement cycle, no surcharge will be levied. However, if they surpass USD 180, a 1% surcharge plus 18% GST on the surcharge will apply to the excess amount.

Meanwhile, IDFC First Bank has announced a surcharge of 1 percent plus GST only when the total utility bill payments made with a credit card exceed USD 240. The utility surcharge does not apply to FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card. Therefore, if your aggregate utility bill transactions (gas, electricity, and internet) are USD 240 or less in a statement cycle, no surcharge will be imposed. However, if they exceed USD 240, a 1% surcharge plus 18% GST on the surcharge will be applicable to the excess.

For example, if you are using an IDFC First Bank credit card, utility expenses of USD 120 in a statement cycle will not incur a fee as it falls below the threshold. However, if you spend USD 360 on utility expenses in a statement cycle, a fee of USD 3.6 (1% fee) plus GST will apply.