Now, No Extra Charges For Payments Through Cred...

Now, No Extra Charges For Payments Through Credit, Debit Cards

Score: 4 Votes: 4
Score: 4 Votes: 4
Score: 4 Votes: 4
Score: 4 Votes: 4
A2z1
Deal Major
82
1,971
17011
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Now, No Extra Charges For Payments Through Credit, Debit Cards

https://cdn0.desidime.com/attachments/photos/265468/medium/3527334cashless-payment_650x400_41471342348.jpg?1480962664

New Delhi: In order to promote cashless economy, the government has said it will bear the transaction cost for all payments made to it through debit or credit cards and net banking.

At present, customers bear the transaction cost commonly known as merchant discount rate (MDR) on payments made to the government.

“Government departments shall take appropriate steps to bear MDR cost like other merchants. The public shall not bear any MDR cost for making payment to government through debit cards or credit cards or digital means,” said the office memorandum issued by the Finance Ministry.

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It further said the methodology for reimbursement of such payment to intermediaries on transactions involving debt/credit cards or digital means is being worked out and the detailed guidelines and operational modalities would be issued in due course.

The Finance Ministry has issued the circular in pursuance of the decision of the government to promote credit/digital transactions in government payments and collections.

Earlier the government had set up a task force under Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta.

The Task Force on promotion of payments through cards and digital means has flagged issues with respective government departments.

The Reserve Bank in 2012 had capped the MDR for debit card transaction at 0.75 per cent for transaction values up to Rs 2,000 and at 1 per cent for transaction values above Rs 2,000. However, there is no RBI cap on MDR on credit card payments.

In order to move towards ‘less-cash’ society by developing a card acceptance infrastructure, the RBI had in March came out with a concept paper to encourage card transactions and sought public opinion.

As of October 2015, there were 61.5 crore debit card users and 2.3 crore credit card holders in the country.

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9 Comments  |  
8 Dimers
Kabali
Deal Colonel
446
23,535
33868
282

wasn’t this thr from last few months?

Oye friend1.6
Deal Subedar
3
222
1112
40

Does this also applicable for Exam Fee?
Recently i paid BSNL JE Fee,
They charged extra 19Rs !

Missing
Deal Cadet
0
73
518
7
@oye_friend wrote:

Does this also applicable for Exam Fee?
Recently i paid BSNL JE Fee,
They charged extra 19Rs !


will this stop shopkeepers to ask for 2 % extra as card charges ? I dont think so ..
shopkeepers want cash and they would still asking 2 % extra charges to demotivate u to pay by card.

A2z1
Deal Major
82
1,971
17011
144
@gotrajk wrote:

@oye_friend wrote:

Does this also applicable for Exam Fee?
Recently i paid BSNL JE Fee,
They charged extra 19Rs !


will this stop shopkeepers to ask for 2 % extra as card charges ? I dont think so ..
shopkeepers want cash and they would still asking 2 % extra charges to demotivate u to pay by card.


Government wants to promote digital money to curb black money menace.
They will extend benefit for the same. Same can not be expected from third parties. They have affordability issues also as they incur cost for credit card collection charges. But they misuse this to cover more than required.
Hope to get this cluttered environment cleared at retail shops soon.

Missing
Deal Subedar
1
2
1226
6
@gotrajk wrote:

@oye_friend wrote:

Does this also applicable for Exam Fee?
Recently i paid BSNL JE Fee,
They charged extra 19Rs !


will this stop shopkeepers to ask for 2 % extra as card charges ? I dont think so ..
shopkeepers want cash and they would still asking 2 % extra charges to demotivate u to pay by card.


Ideally, if any merchant use swipe machine to accept payments through cards, then that means that he accepts to bear transaction cost (what ever has been negotiated with bank). However, I donot understand why at few places customer have to bear such cost.

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A2z1
Deal Major
82
1,971
17011
144
@sunnie wrote:

@gotrajk wrote:

@oye_friend wrote:

Does this also applicable for Exam Fee?
Recently i paid BSNL JE Fee,
They charged extra 19Rs !


will this stop shopkeepers to ask for 2 % extra as card charges ? I dont think so ..
shopkeepers want cash and they would still asking 2 % extra charges to demotivate u to pay by card.


Ideally, if any merchant use swipe machine to accept payments through cards, then that means that he accepts to bear transaction cost (what ever has been negotiated with bank). However, I donot understand why at few places customer have to bear such cost.


Depending on scale & volume of business, retail merchants pass on this cost to customer to keep intact their margins. Plus their accounting of sale is also not organised & they try to avoid tax liabilities to the extent possible.
Bigger retailers have that flexibility to absorb plus they are tax compliant.

Bluewater
Deal Subedar
2
148
1310
24

Misleading Title bro!! atleast mention that this is only related to govt transactions! @op

Draw
Deal Colonel
10
1,179
52036
1046
@BlueWater wrote:

Misleading Title bro!! atleast mention that this is only related to govt transactions! @op


+1

Missing