If you use an HDFC Bank credit card, you need to know about the new charges coming into effect from 1st July 2025. HDFC Bank has updated its most important terms and conditions, and these changes will impact how much you pay when you use your credit card for rent payments, loading digital wallets, and online skill-based gaming. While most users may not be affected because of the high monthly limits, those who use these services frequently—especially high-net-worth individuals—could end up paying more. This article explains the new HDFC credit card charges in simple terms. You’ll understand what is changing, how it affects you, and how to avoid or manage these extra costs. Read on to protect your money and continue using your HDFC card smartly.
Image credit- Card Insider
What Are the New Charges on HDFC Credit Cards from July 1, 2025?
HDFC Bank is adding a 1% fee on certain types of transactions starting 1st July 2025. These charges are part of a wider trend among Indian banks and financial institutions that are looking to regulate usage patterns and reduce misuse of credit benefits.
Let’s break down each charge and what it means for you.
1. Charges on Rent Pay Transactions
Description:
Many cardholders use their credit cards to pay rent through third-party platforms like CRED, Paytm, and MobiKwik. Starting July 2025, HDFC Bank will add a service fee for this.
Details:
- Charge: 1% of the transaction amount
- Cap: ₹4,999 per transaction
- Reward Points: No reward points will be awarded on rent transactions
What This Means:
If you are paying ₹50,000 as rent via a third-party platform, you will now be charged ₹500 additionally as fees. If you pay ₹5,00,000 in rent, the maximum you will pay in fees is ₹4,999.
2. Wallet Loading Charges
Description:
Digital wallets like Paytm Wallet, PhonePe Wallet, and Amazon Pay Wallet are often loaded using credit cards for further payments or to maximize rewards.
Details:
- Charge: 1% of total wallet loads in a calendar month
- Cap: ₹4,999 per transaction
- Applicable When: Wallet load exceeds ₹10,000 in a month
- Reward Points: No reward points for wallet load transactions
What This Means:
If you load ₹15,000 in your wallet using your HDFC credit card in a month, a 1% charge (₹150) will apply.
3. Online Skill-Based Gaming Charges
Description:
With the rise of apps like Dream11, MPL, and others, online gaming involving money has grown. These platforms are now being monitored more closely for financial transactions.
Details:
- Charge: 1% of total skill-based gaming expenses per calendar month
- Applicable When: Monthly spend exceeds ₹10,000
- Cap: ₹4,999 per transaction
- Reward Points: No reward points on these transactions
What This Means:
If you spend ₹20,000 on online gaming in one month, you’ll be charged ₹200 as a fee.
4. Utility Bill Payment Charges
Description:
This includes electricity, water, gas, and other utility payments made using HDFC credit cards.
Details:
- Charge: 1% of the total utility bill payment
- Applicable When: Monthly spend exceeds ₹50,000
- Cap: ₹4,999 per month
- Insurance Exception: Insurance is not considered a utility expense
What This Means:
If you pay ₹60,000 in utility bills in one month, the 1% charge (₹600) will apply. But if you pay insurance premiums, no fee will be charged.
5. Insurance Transactions
Description:
Unlike other categories, HDFC continues to offer reward points for insurance-related payments.
Details:
- Reward Points Cap: 10,000 reward points per month
- Merchant Category Codes (MCC): 1411, 1235, 5960, 6300, 6381
What This Means:
If you pay premiums using your HDFC credit card, you will still earn points but only up to a maximum of 10,000 points per month.
Summary of New Charges
| Transaction Type | Fee | Monthly Cap | Reward Points |
|---|---|---|---|
| Rent Payments | 1% | ₹4,999 | No |
| Wallet Loads | 1% (above ₹10K) | ₹4,999 | No |
| Skill-Based Gaming | 1% (above ₹10K) | ₹4,999 | No |
| Utility Payments | 1% (above ₹50K) | ₹4,999 | Yes (below cap) |
| Insurance Payments | No fee | — | Yes (up to 10K pts) |
Who Will Be Most Affected?
These changes are unlikely to affect casual users or those who spend within the limits. However, the following groups may face higher costs:
- High-net-worth individuals (HNIs)
- Frequent rent payers via credit card platforms
- Gamers spending over ₹10,000 per month
- Digital wallet users who load large sums
- Households with high utility payments
How Can You Minimize the Impact?
Here are some tips to reduce or avoid extra charges:
- Switch to Direct Payments: For rent, try direct bank transfers instead of third-party apps.
- Use UPI or Debit Cards for Wallets: Avoid credit card wallet loads over ₹10,000.
- Monitor Monthly Usage: Stay within limits to avoid the 1% charge.
- Limit Gaming Transactions: Use alternative methods for online gaming payments.
- Combine Utility Payments Wisely: Pay utility bills under ₹50,000/month to avoid charges.
Why is HDFC Bank Introducing These Charges?
The main reasons behind these changes include:
- To align with industry practices (other banks have introduced similar charges)
- To prevent misuse of credit cards for non-regular purchases (e.g., loading wallets for cash-like transactions)
- To manage operational costs
- To encourage responsible usage among customers
FAQs
Q1: When will these new HDFC credit card charges begin?
A: From 1st July 2025, all these changes will be active.
Q2: Will these charges apply to all HDFC credit cards?
A: Yes, these charges are applicable across all types of HDFC credit cards.
Q3: Can I still earn reward points on rent and wallet payments?
A: No, reward points will not be earned on rent and wallet load transactions.
Q4: What if I pay my rent in smaller parts below ₹10,000 each?
A: The 1% charge applies per transaction, so splitting may reduce your total cost, but it depends on how platforms process the transaction.
Q5: Are EMI transactions also affected?
A: These charges apply only to rent, wallet loads, utility bills (above ₹50K), and gaming. Regular EMI purchases are not affected.
Q6: Do I get any benefit from paying insurance using my card?
A: Yes, you can earn up to 10,000 reward points per month on eligible insurance payments.
Final Thoughts
These new charges are important to understand if you want to avoid unnecessary expenses and continue maximizing your HDFC credit card benefits. As digital payments grow and banks regulate high-volume usage, staying informed helps you stay ahead. Whether you’re paying rent, loading wallets, or playing online games, managing how and when you use your card is now more crucial than ever.
Bookmark this guide and review your credit card usage patterns before July 1, 2025. Small changes in your payment behavior can save you thousands every month.
Read Also- American Express Redeem & Get 30% Membership Rewards Points Back