I have noticed that some merchants charge this fee and some do not. Sometimes ago i purchased this timex watch thru visa card (debit card) and the shopkeeper took around 25 bucks extra on mrp for purchasing thru card.
It wud be better if the govt. makes some rules/policy regaring this transaction fees on credit/debit cards so that the picture becomes clearer.
RE:A policy needed to regulate trans. fee
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 10:58 AM Permalink
When you are purchasing through debit card you should never pay any extra charge as you are not given any credit period so why you should pay extra. Instead go to a nearby ATM machine of your bank and take out money and pay cash instead of paying extra
Merchants are never waving this transaction fee. I have talked to bank even while purchaging a bike from hero honda shop. They too said this all depends on merchant.
The Transaction fees charged is niether pocketed by the bank or the merchant. It is a royalty paid to the solution provider(EMV) for a secure transaction thru a card on a POS machine. There is a % levied by the solution provider to the bank which may be one time payment or per transaction(norm nowadays).These % varies and the bank passes this to the merchant who in turn passes this on the the helpless customer. There may be instances where bank takes a margin over and above the % charged by the solution provider. Acceptable if it is within the operating cost of the bank. But if the bank charges more than that then we should have a regualtion in place for this.
We are IT Retailers and our margins are now actually down to 2.5% to 3%. For all Credit card transactions in my case ICICI they deduct 2.248% from our Payment and give the balance payment to us. How do people expect us to absorb the transaction fee when we are as it is working on such miserable margins. Hence we have to pass on the Fee to the Customer
RE:Transaction Fee
by Smart Fool on Nov 23, 2007 02:13 PM Permalink
One more thing most retailers like cash transaction is to avoid paying tax. If it is paid through CC or Cheque, they cannot avoid tax. So they scare away the consumer by saying that they will charge 2% extra is paid by CC so that indirectly they force the customer to pay by cash and inturn save on tax.
RE:Transaction Fee
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 11:04 AM Permalink
If bank is charging you for the credit card transactions than why you do not negotiate with the bank that you will keep the credit card swiping machine only if the bank will provide it for free. Why you pass it on to the customer? Else you take the payment from the customer in cash/cheque. No customer will like add extra 2.5% on purchasing any costly item as 2.5% of Rs. 30000/- is Rs. 600. Why pay that extra?
It is same as VAT or Service Tax applicable, even though its the merchant who is liable to pay them from his own pocket he transfers the burden towards the end user who i s going to use the goods. Now is this a fare practice?
RE:Transaction Tax
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 11:06 AM Permalink
It is not so and don't talk stupid. If any transaction fees are to be charged by the bank they have to clearly mention it and if any retailer or dealer charges it they should ask you before charging. VAT or Service Tax is government rule while transaction fees are at banks or retailers discretion
All Gold shops in chennai charge nearly 2-4% transcation tax when u buy through credit cards. Since u dont have any option (as all gold shops do the same), we need to pay the amount. else use the good old cash payment option.
RE:Indian railways charges transaction fees for online booking
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 11:07 AM Permalink
You can go for SBI Credit card. They do not charge for online booking of railways as they have a tie up with IRCTC.
Ibought a software online by paying in US$ and ICICI charged me 3.5% transaction charges.Here it is the bank and not the seller.Is the bank justified in doing this and can they charge? G.M.
RE:transaction fees on master card
by Sumit Chowdhury on Nov 22, 2007 08:12 PM Permalink
What you did is the Foreign currency transaction. For that all banks in India charge 3% or more as transaction charge. It is already mention in the terms and condition of your credit card agreement.
RE:RE:transaction fees on master card
by PRASAD HSR on Nov 22, 2007 09:40 PM Permalink
railways are the most slimiest operators. there was a time when manual reseravtion was RS.2.00 and computer reservation charges was Rs.10.00,there was no logic such difference.later on charges were standardised at the higher rate. now they are charging additionally for booking ticket from station which is not your origin. why we should pay for additional charges for E-ticket is beyond my comprehension. similarly why extra charges for using credit card? overnite express which delivers ticket is a halfbaked operator.speedpost is very reliable in most of case. all commission and the expense incurred for issuing ticket should be borne by railways.
