By and large the merchant establishments do charge this fee. The attitude is to either pay or leave. I pay this fee only if my card offers me to refund this or gives me a decent cash back that takes care of the charges. Otherwise, i prefer to pay in cash and not pay the transaction charges. I agree that this has to be borne by the merchant outlet but then there is little we could do to enforce this. It is something like the do not call registry wherein you register, feel happy, wait for 45 days and in the end still get the nuisance calls.
RE:Transaction fee
by geeta ramani on Nov 26, 2007 10:45 AM Permalink
Yes, the merchant establishments charge a fee if you tender a credit card. They say take it or leave it.The issuing bank does not help the customer and holder of their credit card. This is because the legal system in India is soft and complaints are literally unaddressed. The establishments do not sell at below MRP even if you specifically request. The GoI itself had issued ads in this regard. About petrol, the banks tie-up with one company and force you to buy from that pump, otherwise, they charge a fee.This is wrong but the authorities do not step-in. Since we are in India the retailers and banks hold us at their mercy.No retailer can refuse to sell goods to a customer.The fight has to be waged by us, customers. Customer is no longer the KING in India.
RE:transaction fee
by ravi prakash on Nov 26, 2007 07:03 PM Permalink
Why not get a law passed that those who charge transaction fee have to display this prominently in their shops or on the name boards. After,all they do mention " Credit Cards Accepted for Minimum purchase of Rs 400" All those who accept credit cards should display this at the entrance. Merchants not doing so would be fined if a law is enacted suitably.
Most of the undustires do not charge transaction fees, be it garment stores, hotels and restaurants, Airlines, hospitals,.
However some of the industries where the margin is low like
Travel Agencies (they earn 5%, discount by 4% and get a profit of only 1%, if they absorb the transaction fee of 2.5%, they will go in a loss)
Petrol Pumps (they only get less than 1%, if they absorb the transaction fee of 2.5%, they will go in a loss)
Consumerism has become so rampant that exploiting businesses has become the sole contention of buyers. If retail businesses fail, t will have a wave effect on employment and affluance of consumers, just like subprime in US has an effect on Indian Stock exchanges.
This is complex economy structure, which i have no time to explain at this hour.
RE:This article is baseless
by Smart Fool on Nov 26, 2007 10:42 AM Permalink
If the consumer pays by credit/debit card or cheque, the money is in the records and the merchants have to pay tax and there is no way they can avoid for a transaction paid by credit/debit card or cheque. If the consumer pays it by cash, the merchants have the flexibility to manipulate the exact amount they show for that transaction. This was the merchant can avoid paying tax completely or partially. Obviously the merchant cannot say this hidden agenda to the consumer. So they indirectly make the consumer pay by cash by saying that there will be additional some % charge if paid by credit/debit card or cheque.
RE:This article is baseless
by ravi prakash on Nov 26, 2007 09:52 AM Permalink
Many upmarket establishments do not charge a transaction fee because this cost is loaded in the price to the customer. There are other merchants, operating at low margins and believing in cash purchases.These people charge a transaction fee on purchases by credit cards. They keep the card swapping machine mainly to attract prospective buyers of large value purchases. The transaction fee is thus waived if a large amt purchaser objects to it and charged to the small value purchaser of low value items to force cash purchases. The transaction fee is thus used in a discriminatory manner by some merchant establishments. If a customer persists then these merchants also say that they do not accept so and so credit card; etc. Such a practice was common with the older Diners Card. It is for the buyer to decide whether to patronise such establishments or not. In the meanwhile the credit card companies can make a list of those who charge transaction charges and make public announcements in the name of fair business practices. Singapore tourism regularly publishes lists of shops who overcharge their customers or avoid paying sales tax or sell cheap and unreliable goods or indulge in discriminatory practices.
Certain industries or products do not offer enough margins for the merchant to absorn the transaction charges for credit card payments (eg. mobile phone handsets and refills). So these shops have no option but to pass on the charges on to the customer.
I am not sure if an additional charge is legal or not? Almost all businesses charge an extra amount. This should be clarified immediately and if its illegal to charge there should be a crack down on such merchants
I am using credit card to fill petrol, the bank credit backs the amt of fuel surcharge in the statement, however the service tax charged on the fuel surcharge is not reversed, this small amount adds upto 50-60 rs. a months i.e. 700 rs. p.a. whis is even higher than the annual fee waived by the bank, does anyone noticed this thing.. actually bank has to reverse service tax also as they dont need to pay service tax to govt. in this case.
i have always kept my eyes open to see this menace does not trouble me. i have taken care to bargain with the merchant and do not pay anything extra until unless by those like irctc where there is no face to bargain, even this is being tried by me to reduce or get the same reimbursed.
Have anybody ever tried to book railway tickets on irctc.co.in. They boldly collect transaction charges and on the top state that the banks will also collect the transaction charges for the ticket amount. Is there any way to challenge ued?the Railways and can the GOI and President on whose name all these charges are collected by the railways can be s
