I’m paying my insurance premium online and on the final page, it gives me two gateway options: HDFC Bank and ICICI Bank. Does it matter which one I choose? Will one of them add extra charges to my premium amount? I’m using an SBI credit card to pay.
The payment gateway you choose for your insurance premium, whether it’s HDFC or ICICI, usually doesn’t determine if you’ll be charged extra. The fees, often called “convenience” or “gateway” charges, typically depend on the payment method you use (UPI, Net Banking, specific credit card) and the insurance company’s own policy on absorbing these costs.
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The Gateway’s Role in Your Insurance Payment
I was paying my term insurance premium last week and saw the same HDFC and ICICI options. A friend who works in fintech explained that these are simply the backend processors. The insurance company has tie-ups with multiple gateways to ensure high payment success rates. For us as customers, there’s usually no difference in performance or base charges between them.
Why Payment Method Matters More Than the Gateway
I decided to test this out during my payment. I selected the HDFC gateway and proceeded to the next screen. The options for UPI and Net Banking clearly showed zero convenience fees. However, when I selected the ‘Credit Card’ option, a small note appeared stating that charges may apply for certain card types. This confirmed the fee is linked to the payment instrument, not the gateway brand.
When Some Cards Incur Extra Insurance Payment Charges
My colleague had a different experience paying for their car insurance last month. They used their American Express credit card and were explicitly charged a 2% “convenience fee” on the final amount. Curious, they restarted the process and chose their Visa debit card instead, and this time there was no fee. The insurer had a policy to pass on the high Amex transaction fee to the customer, regardless of which gateway processed it.
How to Avoid Insurance Payment Gateway Charges
To avoid extra charges on your premium, it’s almost always best to pay with UPI or Net Banking, as insurers typically absorb these lower fees. If you prefer using a credit card, always check the final payment summary for any “convenience fee” before you enter the OTP. The choice between an HDFC or ICICI gateway is highly unlikely to be the reason for any extra cost you might incur.
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