Wednesday, February 24, 2016

Indian Government taken a decision for Surcharges on Credit Card Payments, There is no Surcharge on credit card payments. This will be applicable from 1st April 2016 onwards.

The Cabinet taken the decision and put on this budget meetings, this will be applicable in the next financial year from 1st April 2016. This is a very good decision taken by the Govt. of India to improve digital payments system in India.

Credit Card Payments

All card-issuing banks TOI spoke to, and the Credit Card Holders' Association of India specified that merchant establishments cannot do so. Says a senior banker, "In the US, there is a law that the type of payment should not have any impact on the price... Unfortunately, in India, merchant establishments fall outside the purview of banking regulations."

A Mumbai consumer was recently asked to pay 2% more for cosmetics worth Rs 1,575. She chose to use cash instead. Last week, a Mumbai banker himself paid Rs 120 extra for a cellphone purchase because he didn't have enough cash on him. Says Sachin Khandelwal, head, cards group at ICICI Bank, "Typically, there is a fee a merchant agrees to pay for a terminal... If a merchant tries to recover it from customers, they must walk out." Khandelwal also advises consumers to report such cases to credit card-issuing banks.