Higher Utility Bill Fees Loom For Yes Bank & IDFC First Bank Credit Card Holders; What Are The Changes?

Starting May 1, 2024, credit card customers of Yes Bank and IDFC FIRST Bank will find themselves facing increased fees when paying utility bills. The two banks have announced revisions to their fee structures, affecting how customers are charged for utility transactions on their credit cards.

Yes Bank has introduced changes across various aspects of its credit cards, excluding the 'private' credit card type. The alterations primarily impact the fuel fee category and the computation of expenditure levels for annual and joining fees waiver. Effective May 1, 2024, a 1% charge will apply to all utility transactions within a statement cycle, as stated on the Yes Bank website.

Customers using Yes Bank credit cards for utility bill payments exceeding Rs 15,000 in a single statement cycle will incur a 1% tax along with GST. Notably, the Yes Bank Private Credit Card is exempt from this utility fee. However, transactions below Rs 15,000 remain unaffected. Should utility bill payments surpass this threshold, an additional 18% GST will be levied on top of the 1% surcharge.

Similarly, IDFC FIRST Bank has announced a 1% + GST surcharge for utility bill payments exceeding Rs 20,000. This additional fee applies to all credit card types except the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card. Transactions below Rs 20,000 within a statement cycle remain fee-free, but exceeding this limit will trigger the surcharge, accompanied by an 18% GST.

To facilitate online bill payments, both banks offer QuickPay services, streamlining the process for customers. The following steps outline how to make utility bill payments.

How to make online bill payment using QuickPay
Click on 'QuickPay' in the 'Bill Pay' tab.
Select the category of the biller (e.g., electricity, gas, insurance, landline, post-paid, etc.).
Enter your consumer ID/subscriber ID/mobile number/landline number and other required details.
Enter the bill amount. For certain billers, the amount can be fetched by clicking "Fetch Amount" (applicable only for presentment billers).
Select the bank account.
Check the terms & conditions checkbox and confirm your transaction.
Verify the transaction with the OTP sent to you.

With these steps, customers can complete their utility bill payments conveniently through QuickPay services provided by Yes Bank and IDFC FIRST Bank.

As the May 1 deadline approaches, credit card holders are urged to familiarize themselves with the revised fee structures to avoid unexpected charges on their utility bill payments.