Yes Bank has revised the terms of its credit card, adding charges in case of failure to comply with the bank’s guidelines. From 1 October 2024, Yes Bank Credit Card customers will be levied 1% charges for educational payments made through third-party websites such as CRED or CheQ and on fuel transactions exceeding 10,000 in a calendar month. Let us look at these two new charges in detail.

Education Fee Charges

Education fees paid through third-party apps or websites such as CRED, PhonePe, Housing.com, No Broker, CheQ, etc., will attract an additional 1% charge over and above GST. However, education fees paid through university/college/school websites or their POS machines shall not attract any additional charges. The total education fee payment charge shall be capped at ₹ 5,000 per customer per calendar month.

Category MCC

Education:- 8211, 8220, 8241,8244, 8249, 8299

2.Fuel Transaction Charges

On making fuel transactions of more than ₹ 10,000 in a calendar month Yes Bank Credit Cardholders shall be charged an additional fee of 1% + GST. The total fuel transaction fee shall be capped at ₹ 5,000 every month.

Category MCC

Fuel :- 5172, 5541, 5542, 5983, 9752

Bottom Line

The changes cannot be termed a devaluation since they seem reasonable and also have been introduced by other banks. The move by Yes Bank is, therefore, to prevent any commercial use of personal credit cards. Although this will not affect the regular user, it is good to know that from 1st October 2024 onward, the facilitation of education payments through third-party platforms and fuel transactions from 10,000 onwards will attract charges of 1% or higher.