Credit card settlement fee doubles for HDFC Bank customers
(11 October 2012 – India) India’s largest issuer of credit cards, HDFC Bank will double the fee it charges on cash payments customers make to settle their credit card bills, starting 1 November the fee will be US$1.90 (A$1.85).
The bank currently charges a processing fee of US$0.95 for every credit card repayment made in cash at its branches and ATMs.
Bank officials said the reason for the increase is the extensive manual work involved in branch-level transactions.
The move to hike these fees is also in line with a strategy to encourage customers to do business online and reduce cash handling and related transaction processes at branches and ATMs.
HDFC Bank is India’s largest issuer of credit cards with about 5.6 million customers or some 32 percent of the overall market of 17.6 million.
About a third of all credit card users make cash payments. Last fiscal year, credit card users spent an average US$1046 or almost three times the US$360 spent five years ago.
HDFC Bank, which is also India’s second largest bank by market capitalization, has a network of more than 2500 branches and over 9000 ATMs across India.
Bank officials said the reason for the increase is the extensive manual work involved in branch-level transactions.
The move to hike these fees is also in line with a strategy to encourage customers to do business online and reduce cash handling and related transaction processes at branches and ATMs.
HDFC Bank is India’s largest issuer of credit cards with about 5.6 million customers or some 32 percent of the overall market of 17.6 million.
About a third of all credit card users make cash payments. Last fiscal year, credit card users spent an average US$1046 or almost three times the US$360 spent five years ago.
HDFC Bank, which is also India’s second largest bank by market capitalization, has a network of more than 2500 branches and over 9000 ATMs across India.
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