Credit cardholders with ICICI Bank will experience modifications in the features and fees of their credit cards soon. These alterations apply to a specific set of 21 credit cards offered by ICICI Bank, as indicated in the provided graphic. This adjustment aligns with the trends observed in 2023 among credit cardholders of other banks such as HDFC Bank, IDFC First Bank, SBI Card, and others. Notably, changes were made to restrict airport lounge access within India, introducing minimum spending requirements on certain credit cards for eligibility.
Starting April 1, ICICI Bank credit cardholders will be entitled to one complimentary airport lounge access by achieving a minimum spending of Rs 35,000 in the preceding calendar quarter. This implies that the spending made in the prior calendar quarter will unlock access for the subsequent calendar quarter. For instance, to qualify for free lounge access in the April-June 2024 quarter, a minimum spending of Rs 35,000 in the January-March 2024 quarter is required, and likewise for the subsequent quarters. Currently, if you are using an ICICI Bank Coral Credit Card or ICICI Bank Expressions Credit Card, a minimum spend of Rs 5,000 or more in a quarter is necessary to qualify for complimentary lounge access. This revised spending criterion for availing complimentary domestic airport lounge access will be applicable to the specified ICICI Bank credit cards.
The certain cardholders who acquire lifetime free or mid-range cards often do not engage in transactions but still utilize the airport lounge facilities provided by these cards. This poses a challenge for banks as these customers, despite not generating revenue, avail themselves of costly benefits. While banks may not outright cancel the cards of such customers due to lack of transactions, they opt to cut costs (or adjust benefits, considering the cardholder’s perspective). Consequently, the banks have opted to modify product features to restrict the frequency of lounge visits.
Started from February 1, a dynamic currency conversion (DCC) fee of 1 percent, along with taxes, will be imposed on all international transactions conducted in Indian currency at international locations or with merchants situated in India but registered in a foreign nation. These charges are applicable across all ICICI Bank credit cards.
Dynamic currency conversion is a real-time currency conversion service that enables cardholders to make credit card payments in Indian currency during international transactions or with merchants in India registered in a foreign country. While DCC offers the convenience of understanding prices in Indian currency, it involves additional mark-ups/charges imposed by merchants that may not be favorable for the cardholder.
To illustrate, if you use your ICICI Bank credit card to make a purchase at a store in an international location and opt to pay in INR on a POS machine, a DCC mark-up fee of 1 percent, along with applicable taxes, will be added to the transaction amount. Similarly, when making a purchase in India from a merchant registered overseas and choosing to pay in INR with your ICICI Bank credit card, a DCC mark-up fee of 1 percent, plus taxes, will be levied on the transaction amount. It’s worth noting that ICICI Bank did not previously impose DCC mark-up fees on credit cards.
Commencing from February 1, ICICI Bank will no longer provide reward points for credit card transactions related to rent payments and e-wallet loading. This modification is applicable across all ICICI Bank credit cards, with the exception of Amazon Pay ICICI Bank credit cards.
A prevalent method of utilizing credit card limits involves making fake rent payments to family members or friends through online platforms that facilitate such transactions without requiring a formal rent agreement. Consequently, major banks are not only excluding rent payments from their list of eligible transactions for earning rewards but are also imposing surcharges on such payments, Mandal added.
Mandal further noted that while credit card devaluation is a natural aspect of a credit card’s lifecycle, such fraudulent practices only expedite this process. Genuine credit card users end up facing the repercussions due to misuse by certain professional groups.
The accrual of reward points on utility transactions will persist for all ICICI Bank credit cardholders. Starting from February 1, government transactions such as income tax payment, stamp duty, documents registration, property taxes, etc., will now be categorized as utility payment transactions, ensuring that this modification is applicable to all ICICI Bank credit cards.
