HDFC Bank to Impose 1% Transaction Fee on Select Credit Card Spends from July 1, 2025

HDFC Bank has announced new rules for selected credit card spends. From 1 July 2025, a 1% transaction fee will apply when spends cross a set monthly limit.
These categories include wallet loading, online gaming, bill payments and more.

These spends were earlier reward-restricted, but now they will also become costlier if you exceed the allowed limit.

1% Transaction Fee on Selected Spends

Below is a simple table showing the new limits and monthly charge caps:

Table: New 1% Transaction Fee Structure

Transaction Type Monthly Spend Limit (after which 1% fee applies) Maximum Charge Per Month

Online Skill-based Gaming

₹10,000

₹4,999

Wallet Loading

₹10,000

₹4,999

Utility Bill Payments

₹50,000

₹4,999

Rent (existing rule)

Above allowed limits

₹4,999

Fuel (existing rule for spends above ₹15,000)

Above ₹15,000

₹4,999

Education payments via third-party apps

Above allowed limits

₹4,999

Reward Program Changes

HDFC has also updated the reward system for some categories.

1. No Rewards on Online Skill Gaming

  • All online skill-based gaming spends will not earn any rewards or cashback.

2. Monthly Reward Caps on Insurance Payments

Insurance spends will continue to earn rewards, but monthly caps will apply:

  • Infinia: 10,000 points
  • Diners Black / Black Metal / Biz Black Metal: 5,000 points
  • Other HDFC Cards: 2,000 points

Cards with Their Own Reward Caps

For some cards, the existing card-level capping will continue:

Note:
HDFC Marriott Bonvoy Credit Card will not have any reward capping for insurance spends.

Why These Changes Matter

  • Cardholders who use their HDFC card for wallet loads, utilities and rent may see higher monthly charges.
  • High spenders on bills or gaming may need to track monthly limits to avoid the 1% charge.
  • Frequent insurance payers should check the reward caps to avoid losing points.

Final Takeaway: What Should You Do Now?

  • Review how you use your HDFC credit card each month.
  • Try to keep spends within the new limits to avoid extra charges.
  • For wallet loads, gaming or bill payments, consider using alternate payment methods after reaching the limit.
  • If you pay insurance premiums through your HDFC card, remember the new reward caps to avoid losing benefits.

These revised rules apply from 1 July 2025, so planning your monthly spending can help you reduce extra charges and keep your savings intact.