January 9, 2025
Paying rent with a credit card sounds super convenient—and it is. But that convenience can come with a price tag. Before you swipe, let’s unpack the extra fees you might fact
1. Processing Fees
This is the most common charge. Payment platforms or card issuers typically take 2–3% of your rent as a processing fee. Example: For ₹25,000 rent, a 2.5% fee = ₹625/month → ₹7,500/year. That’s a hefty price for convenience.
2. Convenience Fees
Some landlords add a flat or percentage-based fee just for accepting card payments. It’s less common, but still annoying—think ₹200/month just for the “privilege” of using your card.
3. Late Payment Fees
If your card doesn’t process the payment on time or you exceed your limit, you could face:
A late fee from your landlord
A penalty from your card issuer These can range from ₹500 to ₹1,000/month.
4. Cash Advance Fees
Using a cash advance to pay rent? Think again.
Higher interest rates
No grace period
Extra fees (2–3%) on top of processing charges It’s a double whammy—and best avoided.
Paying rent with a credit card can work—if you earn solid rewards and pay off your balance monthly. But if you’re tight on cash, the fees can pile up fast and outweigh the perks.
