Many people have said that they have not been charged. Its simply because off late things have been changing. These card companies have been tying up with more merchant establishments and charge less, due to competition. Instead of charging merchant/customer they charge membership fee from banks, or from customers having special cards like cash back, miles, etc. Basically the bank benefits on less transaction costs if we use the card (debit or credit), because the transaction cost of withdrawing money and paying or via cheque would be higher. Now you know why banks advertise, educate and encourage customers to use their debit card, because there are inherent benefits to them. Its better to get wise on use of credit cards, because as long as you pay your bill without rollover its fine, but just one delay and if you run out of cash another time, interest and charges start pouring in.
I would like to know the exact rule which specifies that the retailer has to pay the fees to the bank and the Master/Visa Card company. This can further help me out when i deny to pay the Transaction fees. Waiting for your reply.
I also had similar experience of fee being charged, when I purchased a two wheeler at Kinetic showroom. However, I paid because I didnt have money to pay cash. That was an exceptional case, but whereever they charged extra fee I avoided purchases over there. Mostly consumer durables (electronics goods, appliances, petrol bunks, etc) charge this fee. So its better to avoid using cards in these places. If we use we need to confirm about charges. Use of credit cards can be just restricted to purchase of grocery, garments, flight tickets, jewelery (if trans. fee is not charged). In other places its better to pay cash.
Once, I purchased a mobile. The shopkeeper asked for 2% extra. I told him I would be back with the cash. On hearing this, he relented and gave it to me without extra charges. This was my best experience. However, on other purchases, I have had to negotiate for 1% extra instead of 2%. . My worst exp was when I intended to purchase a tata sky card worth 1000. The shopkeeper said 2.5% = 25 rupees extra. I told him - you give 10 , I will give 15 rupees. He spoke quite roughly - ham kyon den? I told him it was because he was supposed to pay the bank, not I, and that I was doing him a favour and not the other way round. . He said he did not earn anything from the transaction. Anyway, I did not give in. I didn't purchase from him and purchased the same from indiaplaza instead - online - without any transaction fee.
RE:Hmm..
by Kaushik Das on Nov 23, 2007 10:15 AM Permalink
The govt is supposed to make a rule disallowing such charges. This is effectively increasing cash transactions and black money. PC should come out with this real rule instead of false ones like cash withdrawal tax.
Four months back, i went to purchase sonyEricsson mobile from Universal mobiles, Chennai. Actual price was 8200/- then i took my card for swipe, by seeing card they told that extra 2% if i use card. then i was surprised, finally i gave in cash only. whats is government doing to handle this type of issues. Nobody is there to takecare of this type issues. Even reportes are very much intrested in taking photos of Actors and cricketers a cinema theaters or some public places to spend thier time with thier loved ones. Why dont these journalist look into these type of issues.
Thanks to the CARTEL of Petroleum Companies. All the companies charge TFee. Some of them tied up with a particular Bank wherein they reverse the charge. In my opinion Petroleum companies should not charge anything at all and by virtue of the size of their business through CCards, they can bargain with the card companies to vaive off the cahrges for FUEL.
I think all the shops should display a broad - as big as 'credit cards accepted here' mentioning 'we also charge transaction fees' else the shop should be barred from accepting cards. This is fair both to the customer and to the shopper.
It is my clear opinion that paying transaction fee on purchase through credit card facility, is against the principle of natural justice to the customer. In fact, the seller is supposed to pay or compensate the said charge. By the credit card facility customers are purchasing the goods in large quantity. This increase the ratio of profit earning of the seller, hence seller or the Bank is supposed to bear the transaction fees.
no merchant establishment charges this amount if you are buying goods at MRP. its charged when you are bargaining on shopkeepers original price, or you are buying at a discounted price. Even at MRP, certain things like mobile refills, where the gross margin is 2/3%, is specifially advertised that cards not accepted, for this item. So this article I feel is incorrect, as I have still to come across where transaction fees is being charged on an item being purchased at MRP. Even discounted price normally they dont charge. Its generally charged at bargained prices, where they bargain at two prices, one for cash, and other for card.
RE:transaction fees
by on Nov 23, 2007 09:14 AM Permalink
Goel,
What about Shell petrol stations in Bangalore. If you pay using ICICI credit card for the gas here they charge transaction fee. Do you think people bargain for petrol prices.
RE:transaction fees
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 10:49 AM Permalink
On applying the credit card and the booklet that came with your credit card clearly mentions that you will be charged 2.5% or minimum Rs. 10 for petrol. That charge is not charged by the petrol pumps but by the Bank itself.
