The Amazon Pay ICICI Credit Card, co-branded by Amazon India and ICICI Bank, has gained popularity for its reward system and various benefits tailored for frequent Amazon users.
However, it’s essential to understand the various charges associated with the card to maximize its potential without any unexpected costs.
Charges for making rent payments through the card, for instance, are applicable and should be taken into account by cardholders to ensure the benefits outweigh the service fees.
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Amazon Pay ICICI Credit Card Fees and Charges
The Amazon Pay ICICI Credit Card offers a range of benefits, but it is crucial to be aware of the various fees and charges associated with its usage.
Annual Fee: There is no annual fee for this credit card, making it an economically attractive option for many users.
Finance Charges: For outstanding dues, finance charges range from 42% to 45.6% per annum.
Cash Withdrawal Charges: There is a fee of 2.5% on the amount withdrawn, which applies when cardholders withdraw cash from ATMs.
International Transaction Charges: The card imposes a foreign currency mark-up of 3.5% on international transactions, which is a fee charged by most credit cards for transactions in currencies other than Indian Rupees.
Fuel Surcharge: Cardholders incur a 1% fuel surcharge for fuel transactions, although this is often waived at select petrol pumps.
Rent Payment Charges: Payments made towards rent using the credit card attract a charge of 1%.
Additionally, cardholders may incur the following fees:
- Late Payment Charges: Up to Rs. 1,200 depending on the outstanding amount and delay duration.
- Over-limit Charges: If the overall credit limit is exceeded, a fee of 2.5% on the over-limit amount is charged.
- Auto-Debit Return Fee: In case of auto-debit failure from a linked account, a 2% fee is applied.
- Card Replacement Fee: A fee of Rs. 100 is levied for the replacement of a lost or damaged card.
Understanding these charges can help cardholders manage their credit wisely and avoid unnecessary expenses.
What is Amazon Pay ICICI Credit Card International Transaction Charges?
When an Amazon Pay ICICI Credit Card holder makes a transaction in a currency other than Indian Rupees (INR), they incur an international transaction charge. These are fees for converting the expense into the card’s billing currency (INR).
The standard international transaction charge for the Amazon Pay ICICI Credit Card is 3.5% of the transacted amount. This percentage is applied to the Indian Rupee equivalent of the foreign transaction at the time of processing.
For example, if a purchase is made in US Dollars, the following steps are taken to calculate the charge:
- The purchase amount in US Dollars is converted to Indian Rupees.
- A 3.5% charge is applied to the converted INR amount.
It is important for cardholders to be aware of these fees as they can significantly increase the cost of foreign purchases or transactions.
There is a spectrum of transactions that can attract this fee including, but not limited to, online purchases from foreign merchants, transactions while travelling abroad, and buying goods and services in a foreign currency.
Cardholders should also note the dynamic nature of currency conversion rates which can affect the final billed amount.
The actual rate applied will be the rate on the day of the transaction processing, not necessarily the day on which the transaction was made.
What is Amazon Pay ICICI Credit Card Rent Payment Charges?
Amazon Pay ICICI Credit Card offers a facility for cardholders to pay their rent with a credit card. For this particular service, the card imposes a rent payment charge. These charges are calculated as a percentage of the rent payment amount, with an added component of tax.
The charge for rent payments made through the Amazon Pay ICICI Credit Card is 1% plus GST of 18%. This fee is levied on each transaction made towards rent payments.
To illustrate, if a cardholder pays rent amounting to ₹10,000, the rent payment charge would be:
- Rent Payment Charge (1% of ₹10,000): ₹100
- GST (18% of ₹100): ₹18
- Total Charge: ₹100 + ₹18 = ₹118
Thus, for a ₹10,000 rent payment, the total charge would amount to ₹118. This fee is automatically added to the cardholder’s account following the transaction.
All cardholders should account for these charges when planning their finances, especially while using the credit card to cover large transactions like rent payments.
What is Amazon Pay ICICI Credit Card Annual Fee?
The Amazon Pay ICICI Credit Card is notable for its zero annual fee structure. This feature applies to not just the first year but is a permanent benefit for the cardholders. The card does not impose a joining fee either, which means that customers can obtain and maintain the card without incurring any kind of yearly or initial charges.
This particular financial product, designed by ICICI Bank in partnership with Amazon, encourages a wide range of users to apply for the card by eliminating the barrier of an annual fee, which is commonly present in many other credit cards.
For a better understanding, here’s a brief overview of some other fees associated with the Amazon Pay ICICI Credit Card:
- Rent Payment Charges: Transactions related to rent may attract certain processing fees as per the terms and conditions of ICICI Bank.
- Fuel Surcharge: Purchases at fuel stations come with a waiver for fuel surcharges up to a specified limit.
- Cash Withdrawal Charges: Cardholders are subject to cash advance fees if they use the credit card to withdraw cash from ATMs.
- International Transaction Charges: Transactions made in foreign currencies can incur additional charges due to currency conversion and processing fees.
Cardholders appreciate the transparent and user-friendly approach towards the fees structure, which includes the absence of annual fees, making the Amazon Pay ICICI Credit Card a cost-effective choice for shoppers and travelers alike.
What is Amazon Pay ICICI Credit Card Late Payment Charges?
Amazon Pay ICICI Credit Card imposes certain fees if the cardholder fails to pay the minimum amount due by the payment due date. These charges are tiered based on the total amount that remains unpaid.
- Less than Rs 100: No charge
- Between Rs 100 to Rs 500: Rs 100
- Between Rs 501 to Rs 5,000: Rs 500
- Between Rs 5,001 to Rs 10,000: Rs 750
- Between Rs 10,001 to Rs 25,000: Rs 900
- Between Rs 25,001 to Rs 50,000: Rs 1,000
- More than Rs 50,000: Rs 1,200
It’s important for cardholders to make at least the minimum payment to avoid these charges. Any late payment can also impact the cardholder’s credit score, which can have long-term consequences on their credit health.
Checking the statement regularly and setting reminders for payment due dates can help in avoiding these late payment fees.
What is Amazon Pay ICICI Credit Card Cash Withdrawal Charges?
When a cardholder uses the Amazon Pay ICICI Credit Card to withdraw cash from an ATM, certain fees apply. These charges are as follows:
- Transaction Fees: A fee of 2.50% of the withdrawn amount is charged per transaction. This is subject to a minimum charge of Rs 500. For example, if a user withdraws Rs 10,000, the transaction fee would be Rs 250, but since the minimum fee is Rs 500, that would be the fee applied.
- Interest Rate: An interest rate between 3.5% to 3.8% per month is levied on the cash withdrawn. This monthly rate translates to an annual rate of 42% to 45.6%. This interest accumulates from the date of the cash withdrawal until the amount is fully repaid.
It is important for cardholders to understand these charges before performing a cash withdrawal to avoid unexpected costs.
Amazon Pay ICICI Credit Card has garnered attention for its rewards and benefits. However, users must consider associated charges.
- Rent Payments: While beneficial for accruing rewards, transactions may attract a processing fee. Users should review the terms for updates on such charges.
- Fuel Surcharge Waiver: Cardholders enjoy the advantage of a 1% fuel surcharge waiver at all fuel stations in India, making it cost-effective for regular commuters.
- Cash Withdrawal Charges: Cash advances are subject to a transaction fee and finance charges from the withdrawal date, hence, it’s prudent to limit cash transactions.
- Annual Fee: The card is celebrated for its zero annual fee, which enhances its appeal to cost-conscious consumers.
- International Transaction Charges: Purchases made in foreign currencies entail a mark-up fee. Cardholders intending to use the card abroad should consider this in their budgeting.
It’s crucial for consumers to be aware of these charges when making financial decisions related to the Amazon Pay ICICI Credit Card.