From December 1, 2026, SBI Card will apply a 1% fee on large transportation and fuel expenses made using its credit cards. This update aims to adjust charges on high-value transactions related to transport and fuel, impacting various users including fleet operators and frequent travelers.
- 1% fee on transportation transactions exceeding ₹30,000 per transaction.
- 1% fee on total fuel spends exceeding ₹50,000 in a billing cycle.
- Fees calculated based on Merchant Category Codes (MCC) for transport and fuel.
- Households with lower monthly spends remain unaffected.
- Customers can manage spending to avoid fees by tracking billing cycles and splitting payments.
What transportation transactions will incur the new 1% fee?
SBI Card will charge a 1% fee on every transportation transaction that exceeds ₹30,000. This fee applies per transaction rather than on the total monthly amount. For example, a single payment of ₹35,000 will attract a ₹350 fee. The transactions subject to this fee are identified by Merchant Category Codes (MCC) 4111, 4784, and 4131. These codes typically include commuter transport such as metro and local trains, tolls, bridge fees, and bus services.
How does the new fee apply to fuel purchases?
For fuel transactions, the fee applies differently. If the total amount of all fuel transactions in a billing cycle exceeds ₹50,000, SBI Card will charge a 1% fee on the entire fuel spend for that cycle. For instance, if a customer spends ₹60,000 on fuel in a billing cycle, a ₹600 fee will be applied. Fuel transactions are identified under MCC 5172, 5541, 5542, and 5983, which cover petrol pumps, fuel dispensers, and fuel dealers. Applicable taxes will be charged in addition to the fee.
Who will be most affected by these changes?
The revised charges will most impact fleet operators, taxi and transport businesses, and customers who recharge their Fastag accounts with large amounts. These groups typically have high transportation and fuel expenses that will now incur additional fees. On the other hand, households with monthly fuel spends below ₹50,000 and transport payments of ₹30,000 or less will not be affected by the new fees.
How can SBI Card customers manage these new fees?
Customers are advised to monitor their fuel spending according to their billing cycle dates. They can also consider splitting large travel payments into smaller amounts to avoid crossing the ₹30,000 threshold per transaction. Being aware of the Merchant Category Codes and how transactions are classified can help users plan their expenses to minimize fees.
Are the Merchant Category Codes fixed?
SBI Card has noted that the Merchant Category Codes are defined by network partners and may change at their discretion. Such changes will be implemented based on communication from the networks, without prior intimation to customers. This means that the categories subject to fees could be updated in the future.
Overall, the new fee structure by SBI Card starting December 1, 2026, requires users to be more mindful of their transportation and fuel spending. By tracking expenses and understanding the fee application, customers can avoid unexpected charges and manage their credit card usage effectively.
