Paying rent by credit card? Read this

If you are paying #Rent via #CreditCards, this post is for you!
For years, rent payments were one of the easiest ways to circulate money via credit cards.
Regulators were aware that this was being abused, but loopholes allowed the game to continue.
That changed on September 15th, when the #RBI tightened its guidelines for Payment Aggregators (PAs) & Payment Gateways (PGs).

The circular clearly states:
"A PA shall aggregate funds only for the merchant with whom it has a contractual relationship. PA business shall not carry out marketplace business."
Translation: If your landlord isn’t an onboarded merchant with full KYC, fintech apps can no longer process your rent.
And that’s why #PhonePe, #Paytm, #Cred, and others have shut this service.

How #Banks Tried to Curb It Earlier!
- Extra charges (e.g., HDFC: 1% + GST on rent payments)
- Most banks offer no reward points on rental spends
In addition, most Platforms charge fees on top of it!

But users still found value:
- #Milestone benefits → annual fee waived off, making the card free, gift vouchers, bonus points, memberships!
- Short-term liquidity → a lifeline for those living salary-to-salary

Impact of RBI’s Move
- Fintechs lose high-value, recurring rent transactions (and fees)
- Banks save on reward leakage but may see reduced card usage
- Consumers need to find new hacks to achieve milestone benefits

Have you ever paid rent via credit card? Why?