New Delhi: You will have to pay a processing fee and tax of Rs. 99 on EMI purchase transactions with the State Bank of India (SBI) credit card, the largest bank in the country.
SBI Credit Card has informed its customers in an email that from December 1, 2021, all EMI purchase transactions will be subject to a processing fee and tax of Rs 99. SBI will charge processing fees for all EMI transactions made on e-commerce websites like Amazon and Flipkart along with other retail outlets.
These charges are in addition to the interest charges for converting a purchase into an EMI. The company has informed its customers about the new charge via email. The move by the bank is likely to affect the growing purchases being made by cardholders who use EMI payment options offered by merchant websites like 'Buy Now Pay Letter' (BNPL) etc. This can make buying a buy now pay letter purchase more expensive using an SBI credit card.
In an email to customers today, the credit card company informed that, Dear Cardholders, We would like to inform you that from December 01, 2021, all EMI transactions made on merchant outlets, websites and apps are subject to a processing fee and tax. A fee of Rs. 99 will be charged.
Processing fees are successfully applied to EMI converted transactions. EMI bookings after December 1 with any transaction made before December 1 will be exempted from this processing fee. The company will inform cardholders about the processing fees on EMI transactions through charge slips when shopping at retail outlets.
For online EMI transactions, processing fees will be reported on the payment page. In case EMI transaction is canceled, the processing fee will be refunded. In case of pre-closure it will not be refunded. Reward points will not apply to transactions converted to Merchant EMI.