HDFC Purchase Credit Card – Benefits, Fees & Eligibility

Introduction

The HDFC Purchase Credit Card is a fundamental business credit card issued by HDFC Bank, primarily designed to streamline the purchase process for corporate entities. Positioned as a basic yet efficient tool, it aims to enhance process efficiency and provide better control over corporate expenses, particularly for vendor and procurement payments. Key differentiating benefits include robust expense management features, up to 45 days of interest-free credit, and significant savings on business travel and software purchases through SmartBuy BizDeals.

Fees

• Joining Fee: Nil
• Annual Fee: Nil
• Rewards Redemption Fee: Nil
• Foreign Currency Markup: 3.5% (plus applicable taxes). Note: Another mention indicates a range of 1% to 2.5% of the transaction amount.
• Interest Rates:
  • Up to 3.75% per month.
  • Non-payment charges (interest on outstanding dues): Up to 2.95% per month and up to 35.4% annually.
• Fuel Surcharge Waiver: 1% to 2.5% waiver at all filling stations across India. (Note: An FAQ states the customer is not eligible for Fuel Surcharge Waiver, which contradicts other mentions).
• Cash Advance Charges: 2.50% of the withdrawn amount, subject to a minimum charge of Rs. 500.
• Spend-Based Waiver: Not applicable.
• Cash Processing Fee: 1% of the amount for cash payment of card dues.
• Reissue of Lost, Stolen or Damaged Card: ₹100/- per card re-issued.
• Late Payment Fees:
  • ₹100 for amounts between ₹100 and ₹500.
  • Up to ₹750 for amounts above ₹10,000.
• Payment Return Charges: 2% of the payment amount, subject to a minimum charge of ₹450.
• Retrieval Fee: ₹125 per charge slip.
• Railway Ticket Purchase Fee: 1.8% of the transaction amount if payment is made through the HDFC Bank payment gateway.
• Rent Payment Fee: 1% fee on rent payments made via Credit Cards on third-party platforms, with a maximum charge of ₹3,000 per transaction.

Rewards

• The HDFC Purchase Credit Card is not a reward-earning card, and customers will not earn any rewards on transactions made with the card.
• Cashback is not offered on this card.

Card Eligibility Criteria

Eligibility Rules

• The applicant’s age should be between 21 years to 65 years.
• The applicant should have a registered business with a stable income.
• The company must be in operation for a minimum of two years.
• The company should have a minimum annual turnover of ₹25 crore.
• The credit score of the applicant might also play an important role.
• HDFC Bank Purchase Cards will be issued upon satisfactory completion of all required documents and compliance with the bank's policies, including necessary checks and formalities.

Documents Required

• Identity Proof: Aadhar Card, PAN Card, Driving License, Voter’s Id, or Passport.
• Address Proof: Aadhar Card, Utility bills of latest months, Passport, etc.
• Business registration certificate, latest audited ITR, passport-sized photograph, etc.

Card Review

The HDFC Purchase Credit Card is a basic offering from HDFC Bank, specifically tailored for corporates to manage and monitor their daily expenses efficiently. It is an excellent choice for businesses seeking enhanced control over their expenditures and improved process efficiency for vendor and procurement payments. The card does not offer traditional consumer benefits like rewards or extensive travel perks, as its core purpose is focused on expense management and operational streamlining. It provides a solid foundation for corporates looking for a functional business credit card without excessive frills.

Important Product Details

• Expense Control: Provides better control on expenses through detailed spend data reports and the ability to place restrictions on cards as per transaction and vendor/merchant category. Customised transaction restrictions can be applied at the MCC or merchant level.
• Process Efficiency: Helps corporates manage all direct company expenses centrally, reducing transaction processing time and overall cost for high-volume, low-value transactions. It simplifies vendor and procurement payments with a convenient paperless process and eliminates the need for multiple payment systems, invoices, and cheques.
• Credit Period: Up to 45 days of interest-free credit on purchases (subject to submission of the charge by the merchant). The credit period is 30 + 15 days.
• Fraud Protection: Offers Zero Protection liability against fraudulent transactions if reported immediately to HDFC Bank’s 24-hour Call Centre.
• Contactless Payments: Supports contactless payments for an improved purchase experience.
• SmartBuy BizDeals: Offers significant savings:
  • Up to 40% savings on business travel and software purchases.
  • Business Travel Benefits via MMT MyBiz: 4% off on Flights and Hotels booking, Discounted Fares, Free Meal & Seat Selection, Low Fees for Cancellation.
  • Business Productivity Tools via Nuclei: Instant discounts on business software such as Google Workspace, Tally Prime, AWS, Microsoft Azure & more.
• Banking Benefits: Integration capability with advanced ERP and expense management solutions, corporate-facing self-service portal for seamless programme management, and the ability to use consolidated reports to negotiate better deals with suppliers.
• Spend Benefits: Advance payments made through PayTM HDFC Bank Purchase Cards, combined with consolidated spend reports, help strengthen negotiation power and secure better discounts from suppliers.
• No Revolving Credit: Corporates cannot revolve on the Purchase Credit Card; full payment needs to be made by the corporate to the Bank.
• Discrepancy in Fuel Surcharge Waiver: While the card's features and benefits sections mention a 1% to 2.5% fuel surcharge waiver, an FAQ explicitly states that the customer is not eligible for a Fuel Surcharge Waiver.

Other Details

• How to Apply: Applications can be made online via the HDFC Bank official website or offline by visiting a nearest HDFC Bank branch.
• MCC-wise Restriction: Merchant Category Code (MCC) wise restriction is possible on Purchase Card usage.
• Multiple Cards: Multiple Purchase Cards can be issued to a company, up to a maximum of ten cards, as per their requirement.
• Payment Options: Payments can be made via cheque, auto debits, or online modes such as NEFT, RTGS. Full payment is required.
• Auto-debit: Auto-debit option for credit card payment is available.
• Delinquency and Cashback: If a customer is delinquent for any product within the bank, they will not receive cashback for their Purchase card spends in the delinquent month. Any missed cashback due to delinquency will not be processed or paid in subsequent months.
• Special MCC Spends & General MCC Spends:
  • Special MCC spends include, but are not limited to, transactions on merchants related to Taxes, Government services, Telecom, Groceries, Fuel, Utility, Insurance, Education, Home décor, Railway, Restaurant, Taxi, Toll fees, Bus lines, Charity, Political organisations, Religious organisations, Beauty shops, Barber shops, Child care services, Real estate agents & rentals, Legal services, Halls, Studios, Laundry services, Agricultural co-operatives, Electrical contractors, Civic, Tax preparation services, Social organisations, Fraternal organisations, Department stores, Supermarkets, Bakeries and Confectionery stores.
  • General MCC spends are transactions other than the above-mentioned merchants.
• Terms & Conditions: All banking offerings are subject to specific terms and conditions, which users must review thoroughly. Commercial Credit Card approvals are at the sole discretion of HDFC Bank Limited and are subject to documentation and verification. Interest rates are subject to change.