Petrol pumps not to accept payment through cards from Monday
Vehicle owners using cards to
purchase fuel will face tough time from Monday as petrol pumps have decided not
to accept payments through credit, debit cards since the banks have levied 1
per cent charge for every sale. “In view of the debit of MDR of 1% it has
been decided to stop accepting payment through Credit/Debit Cards from 9th
January 2017,” said Ajay Bansal, President of All India Petroleum
Dealers Association, in a statement. Earlier last month, the government had announced
.75 per cent discount on purchase of fuel through card.Bansal added that since
their profit margin is fixed on a per KL basis, they could not bear additional
charges levied by banks. “Our margins are fixed on a per KL basis and do not
have any scope to absorb these charges. We have specific mechanisms to compute
the margin and these do not have any scope for credit card MDR. This will lead
to financial loses for the dealers,” he said.
He also alleged delay in
settlement of dues by banks. “To compound maters further these credit card
machine issuers are delaying settlements and not settling the entire dues as
per our settlements. There are disputes about purchases being returned or not
delivered. In a Retail Outlet there is no scope for returns or not being
delivered a product once you have paid for the same. The reconciliation of
swipes to amount being credit to our accounts is causing a lot of hardships and
losses to a large percentage of the dealer community,” he added.
The ICICI bank, however, said
that it will not charge any transaction fees. “We are not charging any
transaction fee on card payment from tomorrow,” said ICICI spokesperson.
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