The State Bank of India (SBI) Credit card division has informed to its customers through email that with effect from 1st December, 2021, bank will charge processing fees of Rs 99 plus taxes on all EMI purchase transactions.
Processing fee will be levied for all EMI purchase transactions done at merchant outlets, e-commerce websites and app using SBI credit cards. This fee will be reflected in customer’s credit card statement along with the EMI amount.
This processing fee is over and above the interest amount the card provider charges. Sometimes merchants give discounts on such transactions by paying the interest amount which makes it appear zero cost EMI to customers. Even in such transactions, this processing fee will be an added cost.
However, the processing fee will be levied only on those transactions that are successfully converted into EMI transactions. While, processing fees will be reversed only in case the EMI transaction is cancelled. Fees charged will be informed to the SBI credit cardholders via charge slips or payment page by merchants.
This is likely to affect purchases being made by SBI cardholders using EMI payment options offered by merchant websites such as ‘Buy Now Pay Later’(BNPL) etc. It may make BNPL purchase more expensive.