Kotak Mahindra Bank has revised its credit card transaction fees, which may result in higher costs for card users. The changes include an increase in the international transaction fee, EMI conversion processing fee, and balance transfer charges. The international transaction fee has been revised from 3.5% to 4%, while the EMI conversion processing fee is now INR 199 + GST. Balance transfers will be charged a processing fee of 1.5% or INR 199, whichever is higher.
The cash advance charges remain the same, but the bank is enforcing stricter interest charges from the first day. These revisions will come into effect from July 1, 2025, and apply to almost all Kotak Mahindra credit cards. The changes reflect a 5-20% increase in charges across categories, bringing Kotak in line with the fees increase announced by other major banks.
The affected transaction categories include domestic transactions, international transactions, EMI conversions, and other charges. Domestic transactions will have cash advance fees of 2.5% or INR 500, whichever is higher, while fuel surcharge of 1% remains applicable. International transactions will have a forex markup fee of 4%, and Dynamic Currency Conversion (DCC) is discouraged due to double charging risks.
To minimize charges, users can link their credit card to digital wallets, enable auto-debit, and limit international usage. They can also use EMI conversion for high-ticket purchases, convert accumulated reward points to vouchers, and be aware of hidden costs. It is essential for card users to stay informed about the updated terms and conditions and explore other credit cards that offer better alternative solutions if the revised charges do not align with their usage.
The comparison with other banks shows that Kotak Mahindra’s revised fees are more aggressive in some categories, such as forex markup fee, while being standard in others, like cash advance fee and card replacement fee. By being aware of the changes and taking smart financial decisions, users can minimize the impact of the revised fees and get the most value out of their credit card.
In conclusion, the revised transaction fees by Kotak Mahindra Bank may seem minor at first but can significantly impact the value card users get over time. Staying informed and making smart financial decisions can help users minimize charges and get the most out of their credit card. It is crucial for card users to regularly review their monthly statements, track their transaction patterns, and stay updated on official communications from the bank to avoid fee traps and related disputes.