We all must have paid our house rents using cash, cheque, Demand Draft or using digital mode of payment such as NEFT/ IMPS / RTGS etc. But the newer generation now is using their credit card to pay their house rent. If you have not heard of this concept of payment of monthly/ quarterly house rent using credit cards, then you must research about it today. There are several companies operating in the market with there application/ website by which you can enter your landlord’s bank account details and pay rent using your credit card. The popular names in the market are Cred, Magicbricks, RedGiraff, MyGate and Paytm etc.
Now you must be wondering why use such platforms and credit card for simple rent payment which we all have been doing since ages. Using these platforms you pay rent via credit card, so even you do not have money in you bank account you can use you card limits. Second, these platforms provide credit/ reward points and cash backs to attract transactions, so the digital generation is crazy to make some quick savings. Third, these platforms provide facility of converting your credit card spends to EMIs if you are credit worthy. While these platforms levy small amount of charges for every transaction that is carried, the people who use them see it in term of total benefit mentioned above. The charges vary between 0.4%-2% depending on the type of transaction and platform.
However, one of the largest new generation bank ‘ICICI Bank’ has decided to charge for all such rent payment transactions at a rate of 1% of the transaction amount with effect from 20th October 2022. This will be the 1st move of this kind from any bank in the Indian financial market where credit card issuing bank will charge over and above the rent payment platforms.
Let’s wait and watch this place for more changes in coming day !